Shares of Life Insurance Corporation of India (LIC) rose on Friday after the state-run insurer reported a strong March quarter performance, driven by healthy premium growth, margin expansion and improving product mix.

The stock climbed to an intraday high of ₹839 on the NSE and settled with 1.59 per cent gains at ₹812.95 compared with the previous close of ₹800.20.

LIC reported a 23 per cent y-o-y rise in net profit at ₹23,467 crore for the quarter ended March 31, 2026, supported by robust annualised premium equivalent (APE) growth and higher value of new business (VNB) margins.

Brokerages turned more bullish following the earnings announcement, citing sustained margin improvement, better product mix and attractive valuations.

Citi maintained a buy call and raised the target price to ₹1,475, highlighting strong operational performance and persistency-led releases from participating products. The brokerage said valuation remains benign, although visibility on promoter holding structure continues to be a key overhang.

Macquarie retained its outperform rating with a target price of ₹1,100. The brokerage said strong margin expansion delivered a positive surprise, while improving product mix drove VNB margin higher. It added that return on embedded value is steadily improving and valuation support remains intact.

Bernstein also maintained outperform with a target price of ₹940, noting that LIC delivered healthy growth in both top line and bottom line during Q4FY26. The brokerage said margins continued to improve in FY26 due to a shift towards non-par products and favourable yield curve movements. It added that management expects margins to gradually converge towards levels seen among private peers over the medium term.

Among domestic brokerages, Emkay Global Financial Services raised its APE estimates by 4-5 per cent and increased VNB margin assumptions by 200-240 basis points, resulting in a 15-16 per cent increase in VNB estimates for FY27 and FY28. The brokerage maintained buy and increased its March 2027 target price by 10 per cent to ₹1,100.

JM Financial said LIC reported strong Q4FY26 results, with individual APE rising 16 per cent year-on-year and group APE increasing 37 per cent. Total APE growth stood at 22 per cent, while VNB margin expanded sharply to 24.9 per cent in the March quarter. The brokerage raised its FY27 and FY28 VNB estimates by more than 15 per cent and increased the target price to ₹960 from ₹888 earlier.

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Published on May 22, 2026