HDFC Life Insur. Q1 FY27 Results (NSE: HDFCLIFE)
Signal: Earnings grew
The read
The quarter shows a rebound in earnings momentum: total income rose 14.1% YoY to ₹3,331,349 lakh and PAT rose 11.9% to ₹61,142 lakh, but expenses of management grew 18.8% and 13-month premium-basis persistency fell to 80.0% from 82.7%, keeping distribution efficiency and retention as the key trajectory tests.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹33,313.49 Cr | +14.1% | +68.8% |
| Net profit | ₹611.42 Cr | +11.9% | |
| EPS | ₹2.83 | +11.4% | |
| EBIT margin | 0% |
P&L walk
Total income rose 14.1% YoY to ₹3,331,349 lakh, but expenses of management grew faster at 18.8% YoY; PAT still increased 11.9% to ₹61,142 lakh as existing-business surplus grew 15.0% and investment income remained strong.
Segments
Non-participating individual and group life was the main earnings driver with a result of ₹17,415 lakh, while unit-linked individual life contributed ₹5,709 lakh; total policyholder segment result rose to ₹29,968 lakh from ₹2,089 lakh YoY.
Key positives
- PAT increased 11.9% YoY to ₹61,142 lakh and basic EPS rose 11.4% YoY to ₹2.83, continuing positive earnings growth.
- Existing-business surplus rose 15.0% YoY to ₹187,422 lakh, faster than PAT growth, while new-business strain improved 14.6% to ₹151,916 lakh.
- Solvency improved to 185% from 192% YoY and 177% in the immediately preceding quarter, providing greater capital headroom.
- Non-participating individual and group life generated ₹17,415 lakh of segment result versus ₹22,062 lakh YoY, remaining the largest positive contributor despite a 21.1% decline.
Key concerns
- Expenses of management rose 18.8% YoY to ₹387,059 lakh, ahead of the 14.1% total-income growth, and the expense ratio increased to 22.5% from 21.9%.
- 13-month persistency on a premium basis declined to 80.0% from 82.7% YoY and 81.6% sequentially, below the open FY27 target of 84–85%.
- Participating individual and group life segment result fell to ₹3,768 lakh from ₹16,202 lakh YoY, while participating and non-participating pension segments remained loss-making at ₹1,041 lakh and ₹878 lakh, respectively.
Research and educational content only. Not investment advice.