Life Insurance Corporation of India (LIC) delivered impressive fourth-quarter results that have caught the attention of brokerages. According to reports from ET Now, the state-owned enterprise reported a 23% increase in net profit to ₹23,420 crore in the March quarter. The company's total income rose to ₹2,53,592 crore during the reporting quarter, compared to ₹2,22,805 crore in the same period of the previous fiscal year. On a quarter-on-quarter basis, total income increased to ₹1,64,691 crore, compared to ₹1,47,586 crore in the corresponding quarter.
Brokerages have responded positively to LIC's strong performance with mixed but generally bullish recommendations. As reported by ET Now, Emkay maintains a BUY rating with a target price of ₹1,100, implying a 37.4% upside potential. The brokerage highlighted that Q4FY26 Value of New Business (VNB) margin of 25.7% beat estimates, while Annual Premium Equivalent (APE) at ₹229.5 billion exceeded expectations. Goldman Sachs maintains a Neutral stance with a target price of ₹900, suggesting a 12.4% upside potential. Goldman Sachs raised FY27–FY28 EPS estimates by up to 6% while noting that margins expanded 692 bps due to better product mix and higher ticket sizes.
LIC's operational metrics demonstrated strong performance across key indicators. According to ET Now, the company's Value of New Business (VNB) margin of 25.7% beat estimates, while Annual Premium Equivalent (APE) at ₹229.5 billion exceeded expectations. Non-par products drove the VNB beat, with margins expanding significantly due to better product mix and higher ticket sizes. The strong VNB performance has improved the company's outlook, leading brokerages to raise estimates for APE, margin, and enterprise value.
Despite the positive brokerage recommendations, LIC's stock performance has shown mixed trends. As reported by ET Now, recent trends indicate pressure in the stock, but long-term returns still reflect underlying strength despite volatility. The company operates under the Ministry of Finance as a state-owned enterprise, with the stock trading as a BSE 200 constituent. The strong Q4 results and positive brokerage sentiment suggest potential for recovery in the stock's performance going forward.
