LIC shares post biggest single day gain in nearly nine months; here is why

LIC on Thursday reported 17.46% year-on-year (YoY) surge in its consolidated net profit to ₹12,930.44 crore in October-December period from ₹11,008.65 crore in the same period last year.

Its net premium income increased 17.76% YoY to ₹1.26 lakh crore during the quarter under review, compared to ₹1.07 lakh crore in the December quarter of the 2024-25 fiscal year (Q3FY25).

The PSU’s first-year premium stood at ₹10,648.46 crore in Q3FY26, reflecting a 45.2% YoY rise from ₹7,333.59 crore in the year-ago period.

Commenting on the earnings, R. Doraiswamy, CEO & MD of LIC, said: “The consumers and the companies in the life insurance industry have responded positively to the various initiatives of the government, especially to GST 2.0. At LIC, we have further increased our performance by achieving higher and better parameters on volume growth as well as product and channel diversification.”

For the nine months ended December 31, 2025, the non-par share within the individual business increased to 36.46% on an Annualised Premium Equivalent (APE) basis, as compared to 27.68% for the same period last year, he added.

Furthermore, the value of new business (VNB) margin also improved to 18.8% for 9MFY26, as compared to 17.1% for the same period last year, Doraiswamy stated.

What global investment banks said on LIC’s Q3 performance

Bernstein said that LIC reported strong top line with margins expanding despite GST cut. New business margin improved to 21% and margin gains were driven by mix and yield curve benefits. GST impact was mitigated via cost discipline and management has flagged that the government stake sale process will begin soon.

Citi said that LIC reported a strong quarter as VNB margin continued to expand largely led by favourable yield curve trajectory. Citi expects higher dividend payout policy and valuations remain benign with lack of any substantial value being ascribed to the MTM.

LIC Trading volume spikes

LIC shares were witnessing higher than usual trading activity as trading volume spiked by 10.4 times to 1.12 crore shares compared with an average trading volume of 10.81 lakh shares.

On the BSE, as many as 14,52 lakh shares changed hands compared with an average of 72,000 shares traded daily in the past two weeks.

As 12:22 pm, LIC shares traded 7.57% higher at ₹904, outperforming the NIFTY NEXT50 index which was down 0.66%.