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HDFC Life Insurance Company Ltd

| Standalone Audited Results – Q4 & FY Ended March 31, 2026

Report Source

⬤16th Apr 26

Summary : HDFC Life reported audited financial results for FY26 with an unmodified audit opinion, recommended a final dividend, approved capital raising via preferential allotment to HDFC Bank, and re-appointed its ED & CFO, while addressing GST and new Labour Code challenges.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Commission (First Year, Renewal, Single Premium).
  2. Employees remuneration and welfare expenses.
  3. Other operating expenses.
  4. Provisions for diminution in value of investments.
  5. Goods & Services Tax on ULIP charges.
  6. Provision for taxes.
  7. Benefits Paid (Net).
  8. Change in actuarial liability.
  9. Gross premium income: First Year, Renewal, Single Premium.
  10. Income from investments (net).
  11. Other income.
  12. Transfer of funds from Shareholders' A/c.
  13. Net cash flow from operating activities: ₹2,250,247 lakh (standalone), ₹2,262,506 lakh (consolidated).
  14. Net cash flow from investing activities: (₹2,375,255) lakh (standalone), (₹2,387,112) lakh (consolidated).
  15. Net cash flow from financing activities: (₹27,464) lakh (standalone), (₹27,464) lakh (consolidated).
  16. Cash and cash equivalents at year-end: ₹954,756 lakh (standalone), ₹959,070 lakh (consolidated).
  17. GST tax demands of ₹104,134 lakh plus penalty.
  18. Income-tax demand of ₹1,557 lakh excluding interest.
  19. Share Capital: ₹215,782 lakh (standalone), ₹215,782 lakh (consolidated).
  20. Reserves and Surplus: ₹1,524,828 lakh (standalone), ₹1,530,175 lakh (consolidated).
  21. Total Assets: ₹37,900,178 lakh (standalone), ₹37,934,458 lakh (consolidated).
  22. Policy Liabilities: ₹24,964,780 lakh (standalone), ₹24,979,986 lakh (consolidated).
  23. Investments (Shareholders', Policyholders', Linked Assets).
  24. Current Assets (Cash, Bank Balances, Advances) and Current Liabilities.
  25. Preferential allotment of shares to HDFC Bank Limited (promoter).
  26. Both standalone and consolidated financial results are presented and audited.

Corporate Overview

  1. Contesting GST appeals and tax demands.
  2. Reassessing employee benefits due to new Labour Codes.
  3. Preferential allotment of shares to HDFC Bank Limited (promoter)
  4. Formal and informative, reporting board decisions and financial outcomes.
  5. Participating - Individual & Group Life
  6. Participating - Individual & Group Pension
  7. Non Participating - Individual & Group Life
  8. Non Participating - Life Group Variable
  9. Non Participating - Individual & Group Pension
  10. Non Participating - Individual & Group Pension Variable
  11. Non Participating - Individual & Group Annuity
  12. Non Participating - Individual & Group Health
  13. Unit Linked - Individual Life
  14. Unit Linked - Individual Pension
  15. Unit Linked - Group Life
  16. Unit Linked - Group Pension
  17. Reinsurance
  18. Raising capital up to ₹1,000 crore via preferential allotment to HDFC Bank Limited.

Risk Factors

  1. Contesting significant GST and income tax demands.
  2. Uncertainty from new Labour Codes implementation.
  3. Actuarial valuation relies on key assumptions.
  4. Interim results not indicative of full year.

Key Drivers

  1. Board recommends final dividend of ₹2.10.
  2. Capital raising via preferential allotment to HDFC Bank.
  3. Key executive re-appointed for five years.
  4. Unmodified audit opinion on financial results.

Auditor’s Report

  1. Unmodified opinion on standalone and consolidated financial statements.
  2. Actuarial valuation of liabilities for life policies in force and discontinued policies.
  3. Actuarial valuation of liabilities is the responsibility of the Appointed Actuary.
  4. Quarterly results are balancing figures from full financial year and unaudited year-to-date figures.

Board Commentary

  1. Re-appointment of Mr. Niraj Shah as Executive Director & CFO for 5 years.
  2. Recommended final dividend of ₹2.10 per equity share for FY 2025-26.
  3. Contingent liabilities from GST and income tax demands.
  4. Uncertainty regarding finalisation of State Rules for new Labour Codes.
  5. GST appeals contesting tax demand of ₹104,134 lakh plus penalty.
  6. Income-tax assessment order for FY 2022-23 with tax demand of ₹1,557 lakh.
  7. Impact of new Labour Codes (Code on Wages, Social Security, Industrial Relations, OSHWC) effective November 21, 2025.
  8. Issuance of 1,45,23,906 equity shares to HDFC Bank Limited for ₹1,000 crore on preferential basis.

Corporate Governance

  1. Mr. Niraj Shah is not related to other Directors.
  2. Nomination and Remuneration Committee recommended re-appointment.

Management Discussion & Analysis

Future Strategy

  1. Capital raising through preferential allotment to HDFC Bank Limited.
  2. Re-appointment of key executive for continuity and long-term objectives.

Operational Focus Areas

  1. Compliance with SEBI and IRDAI regulations.
  2. Addressing impacts of new Labour Codes on employee benefits.

Performance Drivers

  1. Strong growth in gross premium income across segments.
  2. Positive Indian Embedded Value (IEV) and Value of New Business (VoNB).

Risk Control Measures

  1. Filed appeals for GST orders and tax demands.
  2. Reassessed employee benefits for new Labour Codes.

Critical Risks

  1. Uncertainty from GST appeals and tax demands.
  2. Impact of new Labour Codes on employee benefits.
  3. Seasonality of industry results affecting interim periods.
  4. Reliance on actuarial valuation assumptions for liabilities.