LIC shares jump 9% on robust Q4 profit, record dividend payout

Shares of Life Insurance Corporation (LIC) of India surged nearly 9% on Wednesday as investors cheered its March quarter earnings report. The sentiment was further lifted after the state-owned insurer declared a final dividend of ₹12 per share for the financial year ending March 31, 2025, subject to approval by shareholders at the upcoming Annual General Meeting (AGM).

Extending gaining streak for the fourth consecutive session, LIC shares gained as much as 8.8% to hit a 6-month high of ₹948 on the BSE, driven by strong volume. The PSU stock has risen over 12% in four sessions.

At the time of reporting, shares of LIC were up 6.8% at ₹930.60, with a market capitalisation of ₹5.88 lakh crore. Technically, the insurance heavyweight is trading higher than 5, 20, 50, 100, and 200-day moving averages.

LIC shares hit a 52-week high of ₹1,221.50 on August 1, 2024, and a 52-week low of ₹715.35 on March 3, 2025. The counter has delivered a negative return of 9% in the past one year, while it has gained nearly 4% in the calendar year 2025. The stock has rallied nearly 16% in the past one month.

For the fourth quarter ended March 31, 2025, LIC reported profit after tax of ₹19,012.79 crore, up 38.1% year-on-year on the back of lower employee costs. Its employee remuneration and welfare expenses for the reporting quarter were ₹5,928.5 crore, compared to about ₹13,750 crore a year earlier. However, total premium income dropped 3.1% to about ₹1.48 lakh crore.

For the full financial year 2024-25, the country’s largest insurer posted its highest-ever annual profit of ₹48,151 crore, marking an 18.4% year-on-year jump, driven by growth in individual new business premiums and improved operating efficiency. The total premium income rose to ₹4,88,148 crore in FY25, up from ₹4,75,070 crore in the previous fiscal.

Analysts turn bullish post Q4

Post Q4 results, Motilal Oswal has reiterated its "buy" rating on LIC shares, with a target price of ₹1,050 per share. The brokerage said that the management expects premium growth to recover soon, although the reduction in the number of policies issued may take longer to stabilise. “We have cut our Value of New Business (NNB) margin estimates by 50bp each for FY26/27, factoring in FY25 performance,” it said.

The corporation’s VNB stood at ₹10,011 crore in FY25, up 4.5% from ₹9,583 crore in FY24. The net VNB margin also improved 80 basis points year-on-year to 17.6%, helped by a sharp pivot toward high-margin Non-Participating (Non-Par) products. Non-Par Annualised Premium Equivalent (APE) surged over 50% to ₹10,581 crore, taking its share within the individual business to 27.69%, up from 18.32% in the previous year. Par products still accounted for 72.31% of individual APE.

Global brokerage Macquarie has maintained an "outperform" rating with a target price of ₹1,215 per share. It also cautioned around VNB growth, adding that the increasing mix of non-par products and improving cost efficiencies could help sustain margin improvement.

Goldman Sachs has given a "neutral" stance, with trimmed target price to ₹880 per share, citing revenue miss and headwinds following the introduction of new products from October 1.

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