HDFC Life Q4 Result Preview: Flat growth likely, margins seen under pressure

HDFC Life Q4FY26 Result Preview: The March quarter is likely to be a steady one for HDFC Life Insurance Company Limited, without any sharp swings either way. Estimates from Zee Business Research Team suggest the business held up, but growth did not accelerate. New policy sales appear to have slowed, and margins could come under some pressure.

The stock finished at Rs 640.00 on April 15, up 3.38 per cent (Rs 20.90), a day before the company is set to announce its results on April 16.

Premium income shows steady rise

Gross premium income is expected at around Rs 26,670 crore, compared to Rs 24,031 crore a year ago. That is an increase of about 11 per cent.

The numbers suggest demand hasn’t dropped off, but it also hasn’t picked up meaningfully.

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Earnings growth barely moves

Profit after tax is seen at Rs 480 crore, slightly higher than Rs 476 crore last year.

The increase is small, showing that higher premiums are not translating into much improvement at the bottom line this quarter.

New business remains soft

New business APE is expected at Rs 5,200 crore, almost the same as Rs 5,190 crore last year.

This is one area where the slowdown is visible. Growth in fresh business appears to have cooled off during the quarter.

Margins likely to dip

VNB margin is estimated at 24.8 per cent, lower than 26.5 per cent a year ago.

The decline is linked to the impact of GST input tax credit, which is expected to reflect in the March quarter numbers.

Product mix offers some comfort

There are some signs of support from the product side. Traditional plans are seeing better traction, and non-linked products are drawing more interest. Credit term plans are also seeing some recovery.

Compared with some peers, HDFC Life Insurance Company Limited has less dependence on linked products, which could help it stay more stable.

Focus shifts to guidance

With the quarter expected to be largely unchanged, attention will turn to what the company says about the year ahead.

Investors will look for cues on growth, margins and product strategy for FY27 once the results are out.

HDFC Life Q3FY26 result highlights

In the financial results for the nine months ended December 31, 2025, HDFC Life's individual new business in terms of Annualised Premium Equivalent (APE) rose to Rs 9,988 crore, up 11 per cent from Rs 8,986 crore in the same period last year.

Total APE increased 11 per cent to Rs 11,387 crore. The company’s overall market share improved to 10.9 per cent from 10.8 per cent in 9M FY25.

New business premium, including individual and group segments, grew 10 per cent to Rs 24,550 crore. Renewal premium increased 15 per cent to Rs 28,415 crore. Total premium collected during the period was Rs 52,965 crore, up from Rs 47,013 crore.

Value of New Business (VNB) for 9M FY26 stood at Rs 2,773 crore, a 7 per cent increase from Rs 2,586 crore in 9M FY25. New business margins were 24.4 per cent, compared with 25.1 per cent in the previous period. Operating return on Embedded Value (RoEV) was 15.6 per cent, down from 17 per cent in 9M FY25.

Vibha Padalkar, Managing Director and CEO of HDFC Life, said, “Retail protection delivered year-on-year growth of 42 per cent for 9MFY26 and 70 per cent in Q3. Our product mix reflected evolving customer preferences, with ULIPs at 43 per cent and participating products at 27 per cent. VNB grew 7 per cent YoY, while on an adjusted basis, excluding GST and surrender regulation impact, growth would have been 13 per cent for 9MFY26.”