LIC Share Price Target 2025: Stock Surges 7.5% After 38% Q4 Profit Jump – Is It Time To Buy

India's largest insurance firm Life Insurance Corporation of India (LIC) saw its share price rise by 7.51% at Rs 936.45 on the BSE. The insurance major LIC’s stock gained momentum after the insurer posted a strong Q4 showing, with consolidated net profit soaring 38% year-on-year to Rs 19,039 crore. For the full fiscal year, LIC reported an 18% rise in profit, alongside healthy improvements in its assets under management (AUM) and solvency ratio.

The New Delhi-based firm may have seen a dip in premium collections during the March quarter, but that hasn’t shaken broker Emkay Global’s faith in the stock.

The brokerage firm has reaffirmed its ‘Add’ rating and held its target price steady at Rs 1,100, suggesting further upside potential as LIC refines its product mix and pushes for margin growth.

"We retain our ADD rating on LIC with a March 2026 target price of ₹1,100, which implies a reasonable 0.7x P/EV on FY27 estimates," Emkay said in its note.

Also Read: LIC Dividend 2025: Insurer Declares Rs 12 Cash Reward For Shareholders In Q4 Results 2025 - Check Record Date | Republic World

VNB grows despite dip in APE

At the heart of Emkay’s optimism is LIC’s consistent drive to boost profitability through higher-margin offerings. The March quarter saw value of new business (VNB) margins climb to 18.75% — comfortably beating expectations — even as annualized premium equivalent (APE) declined 11% year-on-year to Rs 18,850 crore. For the full fiscal year, APE stood flat at Rs 56,830 crore.

Emkay acknowledged the softness in premium growth but pointed to a sharp rise in non-participating (non-par) products, which now make up 28% of LIC’s individual APE, compared to 18% in the previous year. This strategic shift, the brokerage said, is key to sustaining higher margins.

"LIC is clearly focused on margin-led growth," Emkay Global noted, adding that while policy volumes remain muted, an increase in average ticket sizes is helping offset the slowdown. "This is a balancing act between volume and value—and LIC appears to be managing it well."

Despite a 7% increase in embedded value (EV) to Rs 7.77 lakh crore, the number came in below Emkay’s forecast due to adverse economic variance.

The brokerage has made minor adjustments to its estimates for FY26 and FY27, trimming VNB expectations by 1–2%, but keeping the long-term thesis intact. It also introduced FY28 projections as part of its latest model update.

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