HDFC Life Q3 net up 1.4% at ₹420.73 crore on ₹98-crore impact of new labour code

Vibha Padalkar, Managing Director and CEO, HDFC Life Insurance

HDFC Life Insurance announced a standalone net profit of ₹420.73 crore for Q3 FY26, marking a 1.39% year-on-year increase. This modest growth reflects a ₹98 crore impact from the implementation of new labor codes during the quarter.

The insurer’s net profit stood at ₹414.94 crore during the corresponding quarter of the previous fiscal year.

“The labor code adjustments created a one-time impact on profitability. Excluding this factor, net profit growth would have reached 15%,” stated Niraj Shah, Executive Director & Chief Financial Officer of HDFC Life Insurance. Revenue metrics showed stronger performance, with net premium income climbing 8.77% to ₹18,242.39 crore compared to ₹16,771.26 crore in Q3 FY25.

First-year premiums grew 11.98% year-on-year to ₹3,324.49 crore, while renewal premiums rose 11.72% to ₹10,474.52 crore. Single premium collections increased marginally by 1.49% to ₹5,004.36 crore. Individual Annualized Premium Equivalent (APE) expanded by 13% during the quarter.

Performance Highlights

For the nine-month period ending December 2025:

• Total APE reached ₹11,387 crore, up 11% year-on-year
• Value of New Business (VNB) grew 7% to ₹2,770 crore
• VNB margin settled at 24.4%, down from 25.1% in the comparable period

“Product portfolio enhancements improved margins by 110 basis points, though GST impacts partially offset this gain,” explained MD & CEO Vibha Padalkar. She emphasized that excluding GST and regulatory changes, VNB growth would have been 13% for the nine-month period.

Padalkar noted renewed industry momentum during the quarter, driven by policy reforms and increased demand for protection products. The GST exemption particularly boosted protection segment affordability, contributing to HDFC Life’s 11% growth in individual Weighted Received Premiums (WRP), outpacing the industry’s 10% expansion.

Looking ahead, the company anticipates sustained momentum through the fourth quarter. Product distribution for 9MFY26 comprised:

• ULIPs: 43%
• Participating products: 27%
• Non-par savings: 19%
• Term insurance: 7%
• Annuities: 4%