HDFC Life Insurance's Q2 FY 2025-26 Quarterly Results

Result Summary

• HDFC Life Insurance reported a 29.8% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 27.7%.
• Its expenses for the quarter were down by 29.1% QoQ and 27.6% YoY.
• The net profit decreased 18.2% QoQ and increased 3.0% YoY.
• The earnings per share (EPS) of HDFC Life Insurance stood at 2.08 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

HDFC Life Insurance Company Ltd. is a leading life insurance provider in India. The company offers a wide range of individual and group insurance solutions, including protection, pension, savings, investment, and health plans. Established in 2000, HDFC Life is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.) and Standard Life Aberdeen, a global investment company. HDFC Life has been at the forefront of innovation in the Indian insurance industry, continuously adapting to the evolving needs of its customers. The company is known for its robust distribution network, comprising a diverse range of channels including agency, bancassurance, direct, and online platforms. As of now, there is no specific information available about any recent major developments impacting HDFC Life Insurance within the provided data.

Revenue

For the second quarter of the fiscal year 2026 (Q2FY26), HDFC Life Insurance reported a total income of ₹20,807.50 crores. This represents a decrease of 29.8% from the previous quarter (Q1FY26), where the total income stood at ₹29,627.66 crores. When compared year-over-year (YoY) to the second quarter of the previous fiscal year (Q2FY25), the total income decreased by 27.7% from ₹28,776.43 crores. The sequential decline in total income from the previous quarter and the YoY decline indicate a significant reduction in revenue generation for this period.

Profitability

In Q2FY26, HDFC Life Insurance's profit before tax was ₹84.05 crores, reflecting a 73.8% decline from the previous quarter's profit before tax of ₹320.89 crores. On a YoY basis, profit before tax decreased by 11.3% from ₹94.77 crores in Q2FY25. The tax expense for Q2FY26 was ₹23.19 crores, down 58.2% from Q1FY26 and a significant change YoY, where the previous year's quarter reflected a negative tax amount of ₹465.38 crores, potentially due to deferred tax adjustments or related financial activities. The profit after tax for Q2FY26 was ₹448.29 crores, a decrease of 18.2% from the previous quarter's ₹548.35 crores, but a slight increase of 3.0% YoY from ₹435.18 crores in Q2FY25. The earnings per share (EPS) for Q2FY26 was ₹2.08, down from ₹2.54 in Q1FY26, showing an 18.1% decrease QoQ, but an increase of 3.0% YoY from ₹2.02 in Q2FY25.

Operating Metrics

The total expenses for HDFC Life Insurance in Q2FY26 amounted to ₹20,770.97 crores, which is 29.1% lower than the previous quarter's expenses of ₹29,313.17 crores. Compared to the same quarter in the previous year, total expenses decreased by 27.6% from ₹28,684.41 crores. The reduction in total expenses aligns with the decrease in total income, reflecting controlled operational spending amidst revenue constraints. The company's ability to maintain a profit despite the decline in both income and expenses suggests efficient management of its operational costs during this quarter. However, the significant drop in profit before tax and the changes in tax expenses indicate variations in operational efficiencies or adjustments in financial strategies compared to previous periods.