HDFC Life Q2 Preview: Premium income growth to remain healthy, margins may narrow mildly

HDFC Life to post steady Q2FY26 results on October 15

Private life insurer HDFC Life Insurance Company is expected to post steady results for the July–September quarter (Q2FY26), with both annualised premium equivalent (APE) and value of new business (VNB) projected to grow in high single digits. The company is scheduled to announce its Q2 results on October 15, 2025.

According to a Moneycontrol poll, HDFC Life’s APE is expected to rise to Rs 4,242 crore in Q2FY26, compared with Rs 3,858 crore in the same period last year. APE is a key metric that measures the total value of new business by combining the annual premiums of regular policies with one-tenth of single premiums.

Meanwhile, VNB, which reflects the profitability of new policies sold during a given period—is estimated to grow to Rs 1,022 crore in Q2FY26 from Rs 938 crore a year earlier.

Estimates of analysts polled by Moneycontrol are shown to be in a narrow range, meaning any positive or negative surprises may elicit a sharp reaction in the stock price. Among the brokerages polled, Elara Securities rolled out the most bullish projections while Nuvama Institutional Equities forecasted the slowest growth for HDFC Life.

What factors are driving the earnings?

Gross premium income: According to Motilal Oswal, HDFC Life’s gross business premium is expected to maintain its growth trajectory. First-year premiums are likely to rise about 11 percent year-on-year in Q2FY26, renewal premiums may increase roughly 15 percent, and single premiums could grow as much as 11.4 percent year-on-year.

Margin contraction: Brokerages anticipate that HDFC Life’s VNB margin will contract by 30 basis points year-on-year to around 24 percent in Q2FY26, compared to 24.3 percent in Q2FY25. The marginal decline is primarily attributed to the loss of GST input credit on policies.

What to look out for in the quarterly show?

Investors will closely track the company’s product mix and management commentary on the outlook for non-par and protection products. Margin trajectory, persistency trends, and the overall growth outlook for the remainder of FY26 will also be under the spotlight.