HDFC Life Q2 Results: Net Profit Rises 3.27% to ₹447 Crore; Stock reclaims after declining 3%

16 Oct 2026 , 02:36 PM

HDFC Life Insurance reported a 3.27% year-on-year increase in its net profit to ₹447.15 crore for Q2 FY26 on the back of increase in premium collections and new business value. However, the insurer reported a drop in its value of new business (VNB) margin, lower investment income and weaker policy persistency ratios. The company’s annualised premium equivalent (APE) rose 8.6% year-on-year to ₹4,188 crore. Its value of new business climbed 7.6% to ₹1,009 crore, against ₹938 crore in the same quarter last year.

HDFC Life said that, before the impact of changes to GST on individual life insurance, its profit would have been 15% higher, while VNB growth would have stood at 11%. The VNB margin dipped to 24.09% from 24.31% a year ago. The company said that the margin would have been 25% before the GST impact. VNB margin is the expected profitability of new insurance business. The investment income plunged 87.9% to ₹1,410.05 crore. The solvency ratio, which is an indication of an insurer’s ability to meet its obligations, stood at 175%, compared with 181% a year earlier. The policy persistency also slipped.

The 13th-month persistency ratio came down to 80.8% from 82.5%, while the 61st-month ratio dropped to 62.90% from 67.90%. The ratios indicate the proportion of policyholders that continue to hold their policies over time.

HDFC Life Share Price Today 

HDFC Life shares traded at ₹550.30 on the NSE as of 2:30 PM, down 0.05% from the previous close of ₹550.55. The share opened at ₹550.05 and traded between an intraday high of ₹554.75 and a low of ₹532.60.

What Do HDFC Life’s Q2 Results Indicate?

HDFC Life’s quarterly results showed that the company witnessed a growth in the premiums and new business value, but at the expense of margins, investment income and persistency. The company attributed the impact on reported profitability and VNB growth to changes to GST effective September 22, 2025. The drop in persistency ratios should also be watched out for as policy renewals play a key role in helping insurers to build a steady premium base. Meanwhile, the solvency ratio was at 175%, but it was lower than the year-ago level. Despite the rise in net profit, HDFC Life shares were virtually flat during afternoon trade, implying a muted reaction at the time of reporting.

HDFC Life Q2 FY26: Key Financial Metrics

Metric	Q2 FY26	Year-on-Year Comparison
Net Profit	₹447.15 crore	Up 3.27%
Annualised Premium Equivalent (APE)	₹4,188 crore	Up 8.6%
Value of New Business (VNB)	₹1,009 crore	Up 7.6%
VNB in Previous Year	₹938 crore	—
VNB Margin	24.09%	Down from 24.31%
VNB Margin Before GST Impact	25%	—
Investment Income	₹1,410.05 crore	Down 87.9%
Solvency Ratio	175%	Down from 181%
13th-Month Persistency Ratio	80.8%	Down from 82.5%
61st-Month Persistency Ratio	62.90%	Down from 67.90%
Profit Growth Before GST Impact	—	Estimated at 15% higher
VNB Growth Before GST Impact	—	Estimated at 11%

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