LIC shares jump 5% after Q4 results, first-ever bonus issue. Here’s what brokerages say

LIC on Thursday reported a consolidated net profit of Rs 23,467 crore for the fourth quarter of FY26, marking a 23% year-on-year (YoY) rise from the Rs 19,039 crore profit reported in the corresponding quarter of the previous financial year. The firm’s net premium income, meanwhile, rose 12% YoY to Rs 1.65 lakh crore for the quarter under review against Rs 1.48 lakh crore a year earlier.

For the financial year ended March 31, 2026, LIC reported a more than 5% rise in assets under management (AUM) to Rs 57.29 lakh crore, while net profit increased over 19% year-on-year to Rs 57,419 crore.

As part of the bonus issue, LIC will issue one new fully paid-up equity share of Rs 10 each for every one existing fully paid-up equity share of Rs 10 each. May 29 has been fixed as the record date for determining shareholder eligibility. Meanwhile, the record date for the final dividend of Rs 10 for FY26 has been set as June 25.

Citi on LIC share price

Citi has a ‘Buy’ call on LIC, with a target price of Rs 1,475 apiece, implying an upside potential of more than 84% from the stock’s previous closing price of Rs 800 apiece on NSE.

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The global brokerage said the insurer reported strong operational performance in Q4, driven by a 690 bps year-on-year expansion in VNB margin, beating estimates. The improvement was aided by a higher non-par mix and favourable yield curve benefits in the rapidly growing non-par book. It added that the management highlighted efforts to sustainably improve persistency, drive product innovation, enhance productivity of existing agents, expand the agent base and increase business through non-agency channels.

Valuation remains attractive, with projected FY27 core EV (excluding MTM EV) exceeding the current market value, Citi said. However, it added that visibility on the promoter holding structure remains a key overhang, even as operational performance stays strong.

Bernstein on LIC share price

Bernstein maintained a ‘Market Perform’ rating on LIC shares, with a target price of Rs 900 apiece, implying an upside potential of more than 12%.

The international brokerage said the insurer reported healthy revenue growth in Q4. New sales grew 22% in the quarter and 18% year-on-year in FY26, driven by strong non-par sales. It added that the insurer continued to see margin improvement in FY26, aided by a shift in product mix towards non-par products and favourable yield curve movements.

The brokerage further said the company’s management indicated that margins could converge with those of private peers over the medium term, although it acknowledged that the process would be gradual.

JM Financial on LIC

JM Financial maintained a ‘Buy’ rating on LIC shares and raised its target price to Rs 960 apiece.

“We had upgraded the stock after Q1FY26, expecting it to rerate with growth in 2H. A diversifying product mix with improving margins augurs well for LIC, providing resilience to growth. The stock has remained range-bound as weak markets ensured that EV remained below Sep’24 levels. As macro conditions improve, EV is expected to grow going forward, alongside an improving growth profile, with an unwind of 9%+ and VNB at 2% of opening EV,” JM Financial said, while upgrading its earnings estimates for the state-run insurer.

LIC shares jumped 5% to trade at Rs 839 apiece on the NSE on Friday. Shares of the state-run insurer have declined 2% over the past month, 6% so far in 2026 and 5% over the past year. However, the stock has gained 39% over the last three years.

The company had a market capitalisation of Rs 5.08 lakh crore at the end of the previous session.

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