Shares of Life Insurance Corporation of India (LIC) saw a notable increase on Friday following a robust performance for the March quarter, fueled by considerable premium growth, margin improvement, and a favorable product mix.
The stock reached an intraday peak of ₹839 on the National Stock Exchange (NSE), ultimately closing at ₹812.95, marking a 1.59 percent rise from the previous close of ₹800.20.
For the quarter ending March 31, 2026, LIC reported a net profit of ₹23,467 crore, a 23 percent year-on-year increase, supported by strong annualized premium equivalent (APE) growth and higher value of new business (VNB) margins.
In response to the earnings announcement, brokerages expressed increased optimism, pointing to ongoing margin improvements, a better product mix, and attractive valuations. Citi maintained a buy recommendation and elevated its target price to ₹1,475. The brokerage underscored robust operational performance and persistency-led benefits from participating products, although it highlighted that uncertainties surrounding promoter holding structures remain a concern.
Macquarie reasserted its outperform rating with a target price of ₹1,100, noting that strong margin expansion was a positive surprise and an improved product mix contributed to increased VNB margins. It also indicated that return on embedded value is consistently advancing, with supportive valuations.
Bernstein also retained an outperform rating, setting a target price of ₹940. The firm observed healthy growth in both revenue and profit during Q4FY26 and noted that margins improved throughout FY26 due to a shift toward non-participating products and favorable movements in the yield curve. Management anticipates margins will gradually align with those of private sector peers in the medium term.
Among domestic brokerages, Emkay Global Financial Services raised its APE estimates by 4-5 percent and increased its VNB margin assumptions by 200-240 basis points, resulting in a projected 15-16 percent increase in VNB estimates for FY27 and FY28. The firm maintained a buy rating and raised its target price for March 2027 by 10 percent to ₹1,100.
JM Financial highlighted LIC’s solid Q4FY26 performance, with individual APE up by 16 percent year-on-year and group APE rising by 37 percent. Total APE growth was recorded at 22 percent, while the VNB margin sharply increased to 24.9 percent for the March quarter. The brokerage raised its VNB estimates for FY27 and FY28 by over 15 percent and increased its target price to ₹960 from a previous ₹888.
Published on May 22, 2026.
