LIC delivered a b performance in Q2FY26. ICICI Securities and Motilal Oswal have maintained a ‘BUY’ rating on the share. Investors are estimated to receive over 20% returns due to digital improvements, a robust agent network, and a b product portfolio.
LIC Share: Life Insurance Corporation of India (LIC) recently reported a b performance in its July-September 2025 quarter (Q2FY26). Following this performance, two major brokerage houses – ICICI Securities and Motilal Oswal – have maintained a ‘BUY’ rating on LIC. Both believe that the company's profits and margins will grow in the coming period, potentially offering good returns to investors.
ICICI Securities' Analysis
ICICI Securities has set a target price of ₹1,100 for LIC's shares, which is approximately 23% higher than the current price of ₹896. According to the report, LIC's Annualized Premium Equivalent (APE) grew by 3.6% and Value of New Business (VNB) increased by 12.3% in the first half of FY26. The company has shifted its business towards non-participating policies, where the profit share is not distributed to customers. The share of these policies now stands at 36%, compared to just 9% in FY23.
Furthermore, LIC has enhanced its digital platforms like DIVE and Jeevan Samarth, improving customer experience and expanding its agent network to 14.9 lakh. ICICI Securities believes that these improvements and a robust distribution network will boost the company's profitability, but sustaining sales volume growth will be crucial moving forward.
Motilal Oswal's Outlook
Motilal Oswal has estimated LIC's share to rise to ₹1,080, which is approximately 21% higher than the current price. The report states that LIC's total premium income in the second quarter of FY26 stood at ₹1.3 lakh crore, a 5% increase compared to the previous year. During this period, renewal premium (renewal of existing policies) increased by 5%, single premium grew by 8%, while first-time new policy premium decreased by 3%.
Value of New Business (VNB) rose by 8% to ₹3,200 crore, and the VNB margin improved from 17.9% to 19.3%. Motilal Oswal believes that LIC is now focusing on high-value products, non-participating (non-par) policies, and cost reduction. These improvements are expected to lead to approximately 10% earnings growth for LIC over the next three years (FY26-28).
Investment Opportunities in LIC
Both brokerage houses believe that LIC still has b growth opportunities. The company is diversifying its product portfolio, implementing digital improvements, and strengthening its agent and distribution network. These aspects clearly indicate that LIC shares can deliver over 20% returns in the coming period.
