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Ashish Kumar

8th Aug 2025 · SEBI-Registered Analyst

LIC Shares Surge 5% After Q1 FY2026 Results; Motilal Oswal Maintains Buy, Lowers Target to Rs 1080

Shares of ( !LIC ) rallied up to 5% on August 8, 2025, following the announcement of its Q1 FY2026 earnings. The stock opened at Rs 905 on the NSE, a 2.26% increase from its previous close of Rs 885, and hit an intraday high of Rs 927.10, up 4.76%. By 11:20 PM, LIC shares were trading 3.25% higher at Rs 913.75, with nearly 32 lakh shares exchanged. The stock outperformed its 5-day, 20-day, 100-day, and 200-day moving averages but remained below its 50-day moving average. LIC reported a 5% year-on-year (YoY) rise in net profit to Rs 10,987 crore for Q1 FY2026, up from Rs 10,461 crore in the same quarter last year. Total income grew to Rs 2,22,864 crore from Rs 2,10,910 crore, while the first-year premium slightly increased to Rs 7,525 crore from Rs 7,470 crore. Renewal premiums stood at Rs 59,885 crore, and the Value of New Business (VNB) margin improved by 150 basis points to 15.4% YoY. The expense ratio also declined by 140 basis points to 10.47%. Despite the positive results, Motilal Oswal reiterated its 'Buy' rating on LIC but reduced its target price to Rs 1080, maintaining its FY26 and FY27 estimates unchanged. LIC remains optimistic, projecting double-digit profit growth for FY2026.

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