LIC shares climb 4% after Q3 outcomes. Must you purchase, promote, or maintain? – Company Technique & Outlook

Shares of state-run Life Insurance coverage Company of India (LIC) jumped 4% to Rs 874.95 in Friday’s session, supported by a 17% rise in Q3FY26 revenue and a beneficial brokerage word from Bernstein, which maintained a Market-Carry out ranking and set a goal worth of Rs 940.

The insurer reported a 17% year-on-year (YoY) rise in consolidated web revenue at Rs 12,930 crore for the December quarter, in contrast with Rs 11,008 crore within the year-ago interval.

Web premium earnings stood at Rs 1.26 lakh crore in Q3FY26, up 17% from Rs 1.07 lakh crore within the corresponding interval final 12 months. On a sequential foundation, revenue after tax rose 28% from Rs 10,098 crore reported in Q2FY26, whilst web premium earnings declined marginally by 0.7% quarter-on-quarter.

Throughout the 9 months ended December 31, 2025, LIC bought 1,16,63,856 insurance policies within the particular person phase, barely decrease than 1,17,10,505 insurance policies bought in the identical interval final fiscal 12 months, reflecting a decline of 0.40%.

On an Annualised Premium Equal (APE) foundation, complete premium for 9MFY26 stood at Rs 44,007 crore. Of this, Particular person Enterprise contributed 62.61% or Rs 27,552 crore, whereas Group Enterprise accounted for 37.39% or Rs 16,455 crore.

Inside Particular person Enterprise, Par merchandise made up 63.54% of APE at Rs 17,507 crore, whereas Non-Par merchandise accounted for 36.46% or Rs 10,045 crore. Particular person Non-Par APE elevated to Rs 10,045 crore for the 9 months ended December 31, 2025, in contrast with Rs 6,813 crore within the year-ago interval, registering a progress of 47.44%.

The Worth of New Enterprise (VNB) for the nine-month interval rose to Rs 8,288 crore from Rs 6,477 crore a 12 months earlier, marking a progress of 27.96%. Web VNB margin expanded by 170 foundation factors to 18.8%, in contrast with 17.1% within the year-ago interval.LIC’s solvency ratio improved to 2.19 as on December 31, 2025, from 2.02 a 12 months earlier. Belongings below administration (AUM) elevated to Rs 59,16,680 crore as of December 31, 2025, in contrast with Rs 54,77,651 crore on December 31, 2024, reflecting an increase of 8.01% YoY.

The general expense ratio for the 9 months ended December 31, 2025 declined by 132 foundation factors to 11.65%, in contrast with 12.97% within the corresponding interval final 12 months.

Brokerage view
Bernstein maintained a impartial stance on LIC, assigning a Market-Carry out ranking with a goal worth of Rs 940.

The brokerage mentioned LIC delivered a powerful topline efficiency in Q3FY26 regardless of ongoing GST-related pressures, whereas margins improved on the again of a more healthy enterprise combine and beneficial yield curve actions.

It famous that new enterprise margins rose to round 21%, aided by a greater product combine and yield positive aspects, with the GST impression largely offset by tight value self-discipline.

On the strategic entrance, administration indicated that the method for the federal government’s stake sale is more likely to start quickly. Bernstein additionally expects larger readability on LIC’s dividend coverage following the transition to IFRS accounting requirements, a key monitorable for buyers.

(Disclaimer: The suggestions, solutions, views, and opinions given by the consultants are their very own. These don’t symbolize the views of The Financial Occasions)