Shares of Life Insurance Corporation of India (LIC) surged up to 4% intraday on Monday, reaching a high of ₹813 on the BSE, marking a second consecutive day of gains and a 6% rise over the period. The rally follows the state-owned insurer’s announcement of a 1:1 bonus issue alongside its Q4 results for FY26. Under the bonus plan, LIC will issue one fully paid-up equity share of ₹10 for every existing ₹10 fully paid-up share held by shareholders. The record date to determine eligibility has been set for May 29, 2026.
The company reported a consolidated net profit of ₹23,467 crore for Q4 FY26, reflecting a 23% year-on-year increase from ₹19,039 crore in the same period last year. Net premium income rose 12% to ₹1.65 lakh crore, compared to ₹1.48 lakh crore in the year-ago quarter. For the full fiscal year ended March 31, 2026, LIC’s assets under management grew over 5% to ₹57.29 lakh crore, while net profit increased more than 19% year-on-year to ₹57,419 crore. The insurer also declared a 1:1 bonus issue at the annual level.
Analysts have reacted positively to LIC’s performance and outlook. Citigroup maintained a ‘Buy’ rating with a target price of ₹1,475 per share, implying an upside potential of over 81% from the previous closing price of ₹813. The brokerage attributed the improved numbers to a better non-participating (non-par) product mix and favorable yield curve benefits in the non-par segment. It highlighted management’s focus on improving persistency, boosting product innovation, enhancing agent productivity, expanding the agent network, and increasing contributions from non-agency distribution channels. Citigroup also noted that LIC’s projected FY27 core embedded value—excluding mark-to-market adjustments—exceeds its current market capitalization, though promoter holding structure uncertainty remains a concern.
Bernstein retained a ‘Market Perform’ rating with a target price of ₹900 per share, suggesting an upside of over 11%. The brokerage pointed to healthy revenue growth, with new sales rising 22% in Q4 and 18% year-on-year in FY26, driven by strong performance in non-par products. It also observed continued margin improvement through FY26 due to a favorable shift in product mix and supportive yield curve movements. Bernstein expects LIC’s margins to gradually align with private-sector peers over the medium term, though the transition may take time.
JM Financial maintained its ‘Buy’ rating and raised its target price to ₹960 per share, indicating an 18% upside. The firm cited LIC’s diversifying product mix and improving margins as key growth drivers and upgraded its earnings estimates. While acknowledging that weak equity markets have kept embedded value below September 2024 levels, JM Financial expects improvement as macroeconomic conditions stabilize, supported by business growth, an unwind of over 9%, and a value of new business (VNB) at 2% of opening embedded value. The stock has gained 2% over the last month but is down 7% over six months. As of the latest data, LIC’s market capitalization stands at ₹5.27 lakh crore.
