LIC shares rally 5% after Q1 results; here's what analysts recommend now

Shares of Life Insurance Corporation of India (LIC) rallied 4.7% to hit the day’s high of Rs 927 on BSE on Friday, August 8, after the insurer reported a 5% year-on-year (YoY) increase in standalone net profit for the first quarter of FY26. The net profit came in at Rs 10,987 crore, up from the same period last year, driven by steady premium growth across both individual and group segments.

LIC also reported a 5% YoY increase in net premium income, which stood at Rs 1.19 lakh crore for the quarter ended June 2025. The rise in premium income was attributed to contributions from both the individual and group business lines, reflecting continued demand for LIC’s insurance offerings despite a competitive landscape.

The company has also reinforced its leadership position in the domestic insurance market. According to IRDAI data, LIC maintained a 63.51% market share in First Year Premium Income (FYPI). Within individual businesses, it commanded a 38.76% share, while in the group insurance segment, LIC retained its dominance with a market share of 76.54%.


After the quarterly results, domestic brokerage firm Motilal Oswal has revised its target price on LIC to Rs 1,080 from the earlier Rs 1,150, while maintaining a ‘Buy’ rating on the stock.

The brokerage noted that both Annual Premium Equivalent (APE) and Value of New Business (VNB) were in line with expectations. VNB margin expanded to 15.4%, supported by a favourable product mix shift towards non-par products. According to management commentary, premium growth is likely to recover in the second half of FY26. MOFSL also highlighted that LIC’s strategic focus remains on driving absolute VNB growth.

The brokerage has kept its FY26 and FY27 estimates unchanged.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)