LIC reported a massive 31 percent year-on-year profit growth this quarter, pushing the company’s stock up 2 percent on Friday to an intraday high of ₹914. Following these impressive results, brokerage firm Citi has issued a strong ‘buy’ recommendation on LIC stock and set an ambitious target of ₹1,345, indicating a potential upside of up to 50%.
LIC Quarterly Report
Life Insurance Corporation of India reported a net profit of ₹10,098 crore this quarter, a robust 31 percent increase compared to ₹7,728 crore in the same quarter last year. This impressive performance underscores the company’s strong financial position and growing market presence.
Key Financial Data
The company’s net premium income increased by 5.5% to ₹1,26,930 crore in the quarter, compared to ₹1,20,326 crore in the same quarter last year. In the first half of FY2026, LIC’s profit after tax increased by 16% to ₹21,040 crore, and its total premium income increased by 5% to ₹2,45,680 crore. However, compared to the previous quarter, LIC’s profit after tax in the second quarter declined by 8% to ₹10,957 crore, while its total income increased by 6% to ₹1,19,618 crore.
Premium Details Overview
Looking at the premium details, LIC’s first-year premium earned from new policyholders was ₹10,884 crore in the second quarter of FY2026. This is higher than ₹7,566 crore in the first quarter of FY2026, but slightly lower than ₹11,245 crore in the same quarter last year. This indicates continued momentum in the company’s new business.
Buy Recommendation from Brokerage Firm Citi
Encouraged by LIC’s strong quarterly results, leading global brokerage firm Citi has issued an aggressive ‘Buy’ recommendation on the stock.
Target Price and Potential Upside
Citi has set a high target price of ₹1345 for LIC stock. This target price implies a potential upside of approximately 50% from the stock’s previous closing price, presenting a huge opportunity for investors.
Reasons for a Positive Outlook
The brokerage firm stated that LIC’s strong second-quarter results, its improved product strategy, and improving profit margins across various segments are positive signs for the company. Citi believes that the shift in LIC’s business mix is encouraging. However, the brokerage also stated that maintaining or improving its market share in individual APE (Annual Premium Equivalent) will be most important for a future stock revaluation.
Citi also believes that higher sales will help LIC reduce its per-unit cost (Operating Leverage) and increase the value of new business (VNB). The brokerage also noted that uncovering the company’s hidden or trapped value could further boost its shares.