HDFC Life Q4 Results: HDFC Bank to increase stake in the company as profit rises 4% YoY

HDFC Life Insurance on Thursday said it will issue shares worth Rs 1,000 crore to promoter HDFC Bank on a preferential basis, even as the insurer reported a modest rise in the March quarter profit. The company will allot 1.45 crore equity shares at Rs 688.52 apiece to HDFC Bank, subject to shareholder and regulatory approvals. The capital raise aims to strengthen solvency and support future growth.

HDFC Life reported a 4% year-on-year (YoY) increase in profit after tax to Rs 496 crore for the March quarter. Net premium income rose 9% YoY to Rs 25,829 crore, indicating steady traction in core business despite a challenging operating environment.

The board recommended a final dividend of Rs 2.1 per share for FY26, subject to shareholder approval. The record date is June 19, with payment expected on or after July 20.


The insurer reported 8% growth in new business (APE) for FY26, translating into a two-year CAGR of 12%. Retail protection continued to be a key growth driver, rising 46% in Q4 and 43% for the full year, with its share in the business mix expanding.

Also read: Wipro Q4 Results: Profit slips 2% YoY to Rs 3,502 crore, but revenue rises 8%

The company maintained an overall industry market share of 11%, while retail sum assured grew 28% year-on-year, reinforcing focus on higher-quality business.

Value of new business stood at Rs 4,034 crore for FY26, with margins at 24.2%, while embedded value rose to Rs 62,139 crore. Assets under management, including pension assets, stood at Rs 5.3 trillion, reflecting scale and steady inflows.

Annual profit grew 6% to Rs 1,910 crore, although underlying growth was higher after adjusting for one-offs.

The solvency ratio remained comfortable at 177%, with the proposed capital infusion from HDFC Bank expected to further strengthen the balance sheet.

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