The company posted a net profit of Rs 10,098 crore in Q2FY26, up from Rs 7,728 crore in the same period last year. This was followed by a positive commentary from global brokerage Citi, which sees a 50% upside potential in the stock price post the Q2 results.
LIC’s net premium income for the quarter stood at Rs 1,26,930 crore, marking a 5.5% YoY rise compared to Rs 1,20,326 crore in Q2FY25. On a half-yearly basis, LIC’s profit after tax rose 16% to Rs 21,040 crore, while total premium income for H1FY26 increased 5% to Rs 2,45,680 crore.
Sequentially, however, the Q2 PAT was down 8% from Rs 10,957 crore reported in the April–June quarter of FY26, despite a 6% rise in topline from Rs 1,19,618 crore in Q1FY26. In terms of premium breakdown, LIC’s first-year premium came in at Rs 10,884 crore in Q2FY26, compared to Rs 7,566 crore in Q1 and Rs 11,245 crore in the year-ago quarter.
Renewal premium rose to Rs 65,320 crore from Rs 60,179 crore in Q1FY26 and Rs 62,236 crore in Q2FY25. Meanwhile, single premium collections stood at Rs 50,882 crore — lower than Rs 52,008 crore in Q1FY26 but higher than Rs 46,997 crore in Q2FY25.
Citi has maintained a “Buy” rating on LIC and set a target price of Rs 1,345, implying an upside of around 50% from Thursday’s closing price of Rs 895.45.The brokerage cited LIC’s strong Q2 performance, ongoing product mix realignment, and improving sub-segment margins as key positives. It also noted encouraging signs from LIC’s business mix shift and emphasized that market share stabilization in individual APE (Annualized Premium Equivalent) could be crucial for re-rating the stock.Citi expects higher volumes to drive operating leverage and sustain the insurer’s VNB (Value of New Business) growth. The brokerage also highlighted the unlocking of trapped value as a potential catalyst, with promoters reportedly engaging investors around potential stake sales.
Also read: Nomura upgrades Asian Paints, Berger Paints to Buy. Here’s why analysts are turning bullish
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)