HDFC Life shares decline over 4.5% post Q2 numbers; here is what the company said on GST reforms

The company on Wednesday reported a 3.27% increase in its September quarter net profit at ₹447 crore.

The insurer had reported a net profit of ₹433 crore in the year-ago period and ₹546 crore in the preceding June quarter.

Its first-year premium increased to ₹3,579 crore from ₹3,253 crore seen in the year-ago period, while the single-premium income rose to ₹5,370 crore from ₹4,843 crore during the quarter.

Investment income plummeted to ₹1,410 crore during the quarter, as against ₹11,610 crore.

The company reported a market share gain of 0.90% at the overall level to 11.9% and 0.30% within the private sector to 16.6% at the end of September.

The solvency ratio was at 175%, reflecting a combination of dividend payout, repayment of ₹600 crore subordinated debt, writing more protection business, and the GST impact, it said in a statement.

A solvency ratio is used as a measure of capital adequacy, i.e., a company's ability to adequately meet its long-term financial obligations. It is expressed as a ratio of a company’s ‘Available Solvency Margin’ to its ‘Required Solvency Margin’.

The excess of assets over liabilities, as well as other liabilities of policyholders’ and shareholders’ funds (maintained by the insurer), is known as ASM (Available Solvency Margin), the company explains.

"The recent GST revisions are a constructive structural shift aimed at simplifying compliance and improving affordability. We have ensured that the full benefits of the GST exemption are passed on to our customers," its managing director and chief executive, Vibha Padalkar, said.

The company is also planning to raise up to ₹750 crore in subordinated debt in one or more tranches in the second half.

The CEO said that H1FY26 concluded with topline performance broadly in line with expectations, "with us outperforming both the overall industry and the private sector."

As the external environment evolves, the CEO said they remain confident of the long-term growth potential of life insurance in India.

"The recent GST reform, while necessitating some recalibration for industry stakeholders, is a structurally positive step – it makes life insurance products more affordable for customers. We remain optimistic about our growth trajectory for H2, with sustained demand across segments and improving consumer sentiment. With a resilient business model, a trusted brand, and a history of disciplined growth through cycles, we believe HDFC Life is well-positioned to grow faster than the industry.”

About HDFC Life

Established in 2000, HDFC Life is a life insurance solutions provider in India, offering a range of individual and group insurance solutions that meet various customer needs such as protection, pension, savings, investment, annuity, and health. The company has over 70 products (individual and group products), including optional riders, in its portfolio, catering to a diverse range of customer needs.

HDFC Life, the company says, continues to benefit from its increased presence across the country, having a wide reach with branches and additional distribution touchpoints through several new tie-ups and partnerships. The count of distribution partnerships is over 500, comprising banks, NBFCs, MFIs, SFBs, brokers, and new ecosystem partners, amongst others. The company has a strong base of financial consultants.