LIC shares advance 5% after 'very strong results'; Q3 profit rises 17%

Shares of Life Insurance Corporation of India (LIC) rose nearly 5 per cent on Friday after analysts remained positive on the company following a 17 per cent jump in its net profit in the December quarter of the current financial year (Q3-FY26). 

The insurer's stock rose as much as 4.7 per cent during the day to ₹879.8 per share, the biggest intraday gain since February 3 this year. LIC stock pared gains to trade 4.3 per cent higher at ₹875.9 apiece, compared to a 0.41 per cent advance in Nifty 50 as of 09:38 AM.  

Shares of the company rose for the second straight session and currently trade at 19 times the average 30-day trading volume, according to Bloomberg. The counter has risen 4 per cent this year, compared to a 2 per cent decline in the benchmark Nifty 50. LIC has a total market capitalisation of ₹5.6 trillion.   FOLLOW STOCK MARKET UPDATES TODAY LIVE

 

LIC Q3 results

State-owned insurer reported a 17.5 per cent jump in its consolidated net profit of ₹12,930 crore in Q3FY26. The company reported a profit of ₹11,008.65 crore during the same quarter last year. On a sequential basis, profit rose 28.04 per cent from ₹10,098.48 crore. 

LIC's net premium income for the quarter increased 17 per cent year-on-year (Y-o-Y) to ₹1.26 trillion from ₹1.07 trillion in Q3FY25. Sequentially, premium income declined marginally from ₹1.27 trillion. As of December 31, 2025, LIC's annualised premium equivalent (APE) stood at ₹44,007 crore, up 15.88 per cent Y-o-Y.

Analysts on LIC earnings 

JM Financial said LIC reported "very strong results," led by individual APE growth of 61 per cent, significantly higher than the reported Retail Weighted Received Premium (RWRP) growth of 26 per cent. The brokerage noted that while the growth came off a weak base, the two-year compound annual growth rate stood at 8 per cent. 

JM Financial highlighted that LIC’s value of new business (VNB) margin of 18.8 per cent for the nine-month period implies a strong 21.2 per cent margin for the third quarter, supported by favourable macroeconomic conditions and robust growth. The brokerage said the performance validates its positive stance on the company.  ALSO READ | Godrej Properties shares gain 2% after Q3 profit jumps 23%; check outlook 

While JM Financial raised its FY26, FY27 and FY28 APE estimates by 4-5 per cent, it maintained its margin assumptions for now. The brokerage reiterated its 'Buy' rating on LIC with an unchanged target price of ₹1,111. 

Antique Stock Broking said VNB margin expanded 170 basis points Y-o-Y to 18.8 per cent during the nine months ended FY26, despite a 280 basis point drag from adverse operating assumptions. The negatives stemmed from the GST input tax credit disallowance, lower persistency, and higher expenses in the group business. 

Factoring in better-than-expected APE and VNB performance during 9MFY26, Antique raised its FY26-FY28 VNB estimates by 12-14 per cent. The brokerage maintained its 'Buy' rating on the stock with an unchanged target price of ₹1,100. 

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