Canara HSBC Life Management Guidance Tracker

11 forward-looking guidance items tracked across 3 quarters.

Margins

Q2 FY26Maintain VNB margins near FY25 levels despite GST impactActive

Management targets keeping VNB margins similar to FY25 levels (around 20%) through cost rationalization, product mix optimization, and commission adjustments.

Q2 FY26Mitigate GST impact to ~2.25% annualized on marginsActive

Without management action, GST impact is ~2.25% on margins; actions are expected to neutralize most of it.

Q3 FY26VNB margin impact of GST to be ~185bps for FY26Active

Management expects the GST impact on VNB margin to be around 185 basis points for FY26, down from the earlier estimate of 225bps due to management actions on renewal commissions and expense rationalization.

Q4 FY26VNB margin target of 22-23% for FY27Tracked

Management expects VNB margin to improve to 22-23% in FY27, factoring in full-year GST impact and agency strain, but excluding one-time yield curve benefits.

Expansion

Q2 FY26Agency channel ramp-up in phased manner without margin compressionTracked

Agency channel will be gradually expanded using existing 104 branches, with no significant impact on VNB margins expected.

Q3 FY26Agency channel to be scaled in phased mannerTracked

The agency channel launched in October 2025 will be expanded gradually, with initial strain on margins expected to be offset by protection growth, rider attachments, and cost efficiencies.

Growth

Q3 FY26Protection mix to reach double-digit contributionTracked

Management targets protection business (individual + group) to contribute over 10% of total sales over time, up from current 7%, driven by retail protection and credit life growth.

Q3 FY26ULIP mix expected to moderate to ~55% by year-endActive

The ULIP share of APE, which rose to ~60% in 9M, is expected to decline to around 55% by March 2026 as traditional product sales pick up in Q4.

Q4 FY26Agency channel to contribute ~5% in 3 yearsTracked

The agency channel, launched in October 2025, is expected to contribute around 5% of total business in the next three years, with a phased scale-up.

Q4 FY26Alternate channels to reach 15% share in 3 yearsTracked

Alternate channels (excluding bancassurance) currently at 9% of WPI, targeted to increase to 15% over the next three years.

Q4 FY26Growth to outperform industryActive

Management expects to continue outperforming industry growth, though no specific top-line guidance was given due to geopolitical uncertainty.