HDFC Life Q4 results preview: APE could rise by up to 17 YoY, value of new business to likely surge up to 14%

HDFC Life Insurance Company’s annualised premium equivalent (APE) is expected to go up in the range of 10% to 17% on a year-on-year basis in Q4FY25, according to estimates given by three brokerages, which have estimated APE between Rs 5,214 crore and Rs 5,510 crore for the quarter ended March 31, 2025.

The value of its new businesses (VNB) could go up by 10-14% in the said quarter, the estimates said.

The estimates have been given by Mirae Asset Sharekhan, Yes Securities and Nuvama Institutional Equities. While Yes remains most conservative in its APE and VNB estimates, Nuvama remains most bullish in the pack.


The private insurer’s profit after tax could go up by 31% on a YoY basis while rising by 28% on the QoQ basis, Sharekhan said.

HDFC Life will announce its quarterly earnings on Thursday, April 17, 2025.

Here’s what brokerages recommended:

Sharekhan

Sharekhan expects HDFC Life’s profit after tax (PAT) at Rs 540 crore in the reporting quarter, surging by 31% YoY and 28% QoQ. The net premium income in the quarter ended March 31, 2025 could be Rs 23,912 crore, gaining 17% on a YoY basis while 42, sequentially.

The APE is expected to be around Rs 5,400 crore in the January-March quarter which could go up by 14% on a YoY basis and 51% on a QoQ basis.

The VNB is seen at Rs 1,409 crore in the reporting quarter, which could go up by 14% You and 52% QoQ. Meanwhile, the VNB margin is expected to remain flat YoY and QoQ at 26.1%.

Sharekhan has recommended a ‘Buy’ on the stock for a target of Rs 870.

Yes Securities

The new business premium (NBP) is pegged around Rs 11,346 crore, which could be a 19 YoY and 44% QoQ uptick.

The company could report an APE of Rs 5,214 crore, rising by 10% YoY and 46% QoQ. Meanwhile, the VNB is seen at Rs 1,359 crore, a 10% YoY and 46% QoQ growth.

“We pencil in new business growth assumptions based on trends observed till February 2025, when HDFC LIFE had displayed NBP/APE growth of 19%/40% for 2M4QFY25 (January and February 2025) over 2M3QFY25 (October and November 2024). We pencil in a VNB margin to be stable QoQ due to a similar product mix,” Yes Securities said in a business note.

Nuvama

Nuvama has estimated HDFC Life’s APE for Q4FY25 at Rs 5,510 crore, which may go up by 17% on a YoY basis while climbing by 54% on a sequential basis. The VNB is pegged around Rs 1,410. This will be a 15% jump over Q4FY24 and 52% over Q3FY24.

Investors will watch out for product mix, margins and any guidance on sales through bank and agency channels, Nuvama said in a note.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)