HDFC Life Insurance Company Margin Trend — Quarter by Quarter

HDFC Life Insurance Company's EBITDA margin moved from -2.0% in Q2 FY24 to 1.0% in Q4 FY26 across 9 quarters. Management commentary below explains the cost and pricing drivers mentioned on calls.

EBITDA Margin by Quarter

Quarter	EBITDA Margin (%)	YoY Change
Q4 FY26	1.0%	—
Q3 FY26	1.0%	—
Q2 FY26	2.0%	—
Q4 FY25	2.0%	—
Q3 FY25	3.0%	—
Q2 FY25	-1.0%	—
Q4 FY24	1.0%	—
Q3 FY24	1.0%	—
Q2 FY24	-2.0%	—

What management said about ebitda margin

Q4 FY26 · GST impact to be neutralized by H1 FY27

Management expects the GST headwind on margins to taper off and be largely neutralized as the company moves into FY27.

Q4 FY26 · VNB growth to be in line with APE growth in FY27

The company aims to deliver VNB growth at least in line with APE growth, with potential for margin expansion as environment stabilizes.

Q3 FY26 · Neutralize GST impact by Q1 FY27

Management aims to reduce GST impact to ~100 bps in Q4 and fully neutralize by start of FY27.

Q2 FY26 · Neutralize GST impact on margins over 2-3 quarters

Management expects to offset the ~3% annualized gross margin impact from GST withdrawal through distributor/vendor renegotiation, product mix improvements, and cost adjustments, aiming for normalized VNB growth by FY27.

Q1 FY26 · Margins to remain rangebound in FY26

Management expects VNB margins to stay in the 25-27% band for the current year, with potential expansion over a three-year horizon.

Q4 FY25 · Margins to remain range-bound in near term

Despite potential margin-accretive product mix, investments in distribution and technology will keep margins range-bound; long-term upward trajectory expected.

Q3 FY25 · Surrender regulation impact contained to 20-30bps annually

Net impact of new surrender value regulations on margins expected to be 20-30 basis points on an annualized basis after distribution adjustments.

Q2 FY25 · Full-year VNB growth of 15-17%

VNB growth is prioritized over margin; management expects to deliver 15-17% VNB growth for FY25.

Q2 FY25 · Margins to remain range-bound with a floor

Management expects NBM to be range-bound, not collapsing to 500-600 bps lower, but will be an outcome of product mix and regulatory changes.

Q2 FY25 · Surrender value regulation impact of ~100 bps on margins

The new surrender value norms are expected to impact margins by about 100 bps, partially mitigated by distributor commission renegotiations.

Q1 FY25 · VNB doubling in 4 years

Management targets doubling VNB every four years, implying ~19% CAGR, driven by APE growth, mix improvement, and margin expansion.

Q1 FY25 · Margin impact of ~100bps from new surrender regulations

New surrender value regulations effective Oct 1 are expected to impact new business margins by ~100bps, which management aims to mitigate via distributor payout restructuring.