HDFC Life Q4 earnings: Net profit jumps 4% YoY to ₹496 crore; ₹2.1 per share dividend recommended

In the corresponding period of the last fiscal year, it had logged a profit of ₹476.54 crore, according to a regulatory filing.

The life insurance arm of HDFC Bank recorded an 8.68% YoY surge in its net premium income to ₹25,829.43 crore during the quarter under review, compared to ₹23,765.56 crore in the fourth quarter of the 2024-25 fiscal year (Q4 FY25).

For the 2025-26 financial year (FY26), its assets under management (AUM), including those of its wholly owned subsidiary, HDFV Pension Fund Management, stood at ₹5.3 trillion.

Its new business, in terms of annualised premium equivalent (APE), grew 8% YoY, translating into a healthy two-year compound average growth rate (CAGR) of 12% for FY26.

Additionally, it recorded ₹4,034 crore as value of new business (VNB) for FY26, with margins of 24.2%. Its VNB grew broadly in line with APE, excluding the GST and the surrender regulation impact.

Board declares final dividend, record date

The board of directors of HDFC Life Insurance Company also recommended a final dividend of ₹2.10 per equity share with a face value of ₹10 each for FY26, subject to approval of the shareholders at the ensuing Annual General Meeting (AGM).

Furthermore, it set Friday, June 19, 2026, as the record date for the final dividend.

"The payment of final dividend will be made on or after July 20, 2026, subject to deduction of tax at source at the applicable rate," it added.

Preferential issue

Additionally, the board of HDFC Life approved the issuance of 1,45,23,906 equity shares with a face value of ₹10 each, at a price of ₹688.52 per unit, aggregating up to ₹1,000 crore, on a preferential basis to its promoter, HDFC Bank.

The preferential issue will be on a private placement basis, in accordance with Chapter V of the SEBI ICDR Regulations, the firm noted.

HDFC Life stated that its board decided to raise up to ₹1,000 crore by way of a preferential issue to its parent, HDFC Bank, to augment its solvency position, which stood at 177%.

Re-appointment

The board also re-appointed Niraj Shah as the Executive Director and Chief Financial Officer of the company for a period of five years, with effect from April 26, 2026.

What the management said

Commenting on the earnings, Vibha Padalkar, Managing Director and CEO of HDFC Life, said: “During FY26, we continued to maintain our position among the top three private insurers by individual WRP. Our private sector market share stood at 15.2% for 11MFY26.

She said that HDFC Life outperformed the broader industry in two key focus areas: the first being retail protection, which grew 43%, and the second being the agency channel, which also grew ahead of the industry.

She further stated that the company’s retail sum assured growth for 11MFY26 was higher than the industry, “reinforcing the quality of our business mix.”

“Retail Protection was a clear highlight during the year, with growth of 43%, supported by lower pricing post GST and a strengthened product portfolio. Annuities were another area of meaningful progress,” Padalkar added.

Looking ahead, she said that the firm expects a gradual shift in the product mix as customers rebalance toward long-term savings and protection in an environment of greater uncertainty.

“The ongoing build-up of the agency channel was another strong story of the year. The agency grew ahead of the company by 500 bps, maintaining a strong protection mix. We believe our focus on continued investments in distribution, product competitiveness, partner engagement positions, and pricing discipline us well to deliver more sustainable and profitable growth as the environment normalises,” Padalkar commented.

Shares of the company closed 1.40% lower at ₹631.50 per unit on the National Stock Exchange (NSE) on Thursday, ahead of its earnings and dividend announcement.

HDFC Life Insurance Company has a total market capitalisation of ₹1.36 lakh crore as of April 16, 2026, according to data on the NSE.