Shares of Life Insurance Corporation of India (LIC) jumped nearly 9% after reporting strong quarterly results and announcing a healthy dividend for the financial year 2024-25. But what exactly drove this surge, and what should investors take away from this?
Let’s unpack the numbers and the story behind LIC’s latest performance.
How did LIC’s Q4FY25 results impact its share price?
On the trading day following its Q4FY25 results announcement, LIC’s stock soared as much as 8.81%, hitting ₹948 per share, the best intraday gain since November 2023. By mid-session, it settled around ₹934, still a solid 7.6% gain, while the benchmark Nifty50 showed a slight decline of 0.33%. This rise extended LIC’s gaining streak to four consecutive days, with the share price climbing more than 12% from recent lows near ₹840.
LIC’s current market capitalisation stands close to ₹5.8 trillion, reinforcing its status as one of India’s biggest insurance companies. The stock’s upward momentum was also backed by technical indicators, trading above key moving averages such as 5, 20, 50, 100, and 200 days, signalling sustained investor interest.
Also read: LIC Share Price Falls After Q3 Results – Buy, Hold, or Sell?
What do the numbers tell us about LIC’s Q4 performance?
The state-owned insurer reported a net profit of ₹19,012 crore for the quarter ending March 2025, marking a 38% year-on-year jump from ₹13,763 crore in the same period last year. This impressive profit growth was largely supported by a sharp decline in expenses, which fell from ₹24,709 crore last year to ₹16,495 crore this quarter.
Here’s a quick snapshot of LIC’s key Q4FY25 numbers:
| Metric | Q4FY25 | Q4FY24 | Change (%) |
| Total income | ₹2,41,625 crore | ₹2,50,923 crore | -3.7% |
| Annualised premium equivalent (APE) | ₹18,853 crore | ₹21,180 crore | -11% |
| Value of new business premium (VNB) | ₹3,534 crore | ₹3,645 crore | -3% |
| VNB margin | 18.75% | 17.21% | +1.54% |
| Investment income | ₹93,133 crore | ₹84,400 crore* | +10.3% |
| Net profit | ₹19,012 crore | ₹13,763 crore | +38% |
*Note: Last year’s investment income estimated based on reported increase.
Though LIC’s first-year premium collection dropped, renewal premiums rose from ₹77,368 crore to ₹79,138 crore, indicating steady business from existing customers. The decline in expenses clearly helped boost net profit, while investment income also grew by over 10% year-on-year.
You may also read: Hindustan Copper’s strong Q4 results
Dividend announcement
LIC’s board has recommended a final dividend of ₹12 per share for FY25, subject to shareholder approval. This dividend declaration added to positive market sentiment, reassuring investors about LIC’s ability to generate cash and reward shareholders.
What is LIC’s management saying about the future?
During the post-earnings call, LIC’s management highlighted a few key points:
- In FY25, LIC invested ₹1.85 trillion in equity markets, up 41% compared to FY24.
- Profits from equity investments increased 19% year-on-year, reaching ₹73,000 crore.
- LIC is focusing on improving persistency (the percentage of customers renewing policies), which is expected to show results in the coming year.
- New product regulations have led to changes in product mix and ticket sizes, signalling a shift in strategy to improve profitability.
How are brokerages viewing LIC stock now?
Brokerages have been mostly positive on LIC after these results:
| Brokerage | Rating | Target Price (₹) | Key Highlights |
| Macquarie | Outperform | 1,215.00 | Valuation provides a cushion despite VNB caution |
| Motilal Oswal | Buy | 1,050 | Focus on product mix, margin expansion, and channel growth |
| Goldman Sachs | Neutral | 880 | Cautious on valuation but stable outlook |
Motilal Oswal notes that LIC’s value of new business margin expanded to 18.7% in Q4FY25 from 17.2% a year earlier, though still below their expected 20.1%. They expect improvements in product attachments and higher-margin offerings to support margin growth going forward.
What does this mean for investors?
LIC’s solid Q4 performance, rising profits, and dividend announcement provide a clearer picture of the company stabilising after challenges in premium collections and product changes. The stock’s recent gains reflect growing investor confidence, boosted by improving margins and steady renewal premium income.
However, investors should keep in mind that LIC’s new business premium value slipped slightly, and future margin expansions may be modest due to changing regulations and market conditions. The upcoming year will be critical in seeing how persistency improvements and product revamps translate into sustained growth.
You may also read: Brainbees Solutions Q4 FY25 results & share price analysis
Conclusion
LIC’s share price rally after its Q4FY25 results shows the market’s approval of its profit growth, cost efficiency, and investment gains. With a ₹12 final dividend and positive broker ratings, LIC remains an important player in India’s insurance space.
For investors watching the insurance sector, LIC’s evolving story offers insights into a state giant adapting for the future, balancing legacy strengths with fresh strategies.
