LIC shares surge over 5% post Q1 results; brokerages see up to 55 per cent upside; should you buy?

LIC Q1 Results; LIC Shares Today: Shares of Life Insurance Corporation of India (LIC) rallied over 5 per cent in morning trade on Friday, a day after the state-owned insurance giant posted its financial results for the first quarter of FY26. The stock rose to Rs 927 apiece, buoyed by solid earnings and improved asset quality, with brokerages retaining a bullish outlook and estimating up to 55 per cent upside potential.

On August 7, LIC reported a standalone net profit of Rs 10,987 crore for Q1FY26, registering a 5 per cent year-on-year (YoY) increase from Rs 10,461 crore in the corresponding quarter last year. The insurer’s net premium income also climbed 5 per cent YoY to Rs 1.19 lakh crore, compared to Rs 1.14 lakh crore in Q1FY25.

Key financial metrics showed strong improvement. The solvency ratio rose to 2.17 per cent, up from 1.99 per cent a year earlier. In terms of asset quality, gross non-performing assets (GNPAs) fell 21 per cent YoY to Rs 8,436.5 crore, while net NPAs dropped 36 per cent to just Rs 4 crore. The gross NPA ratio improved to 1.42 per cent, from 1.95 per cent in the year-ago period.

Although the stock declined about 3 per cent in the past month, it has gained nearly 14 per cent over the last six months. LIC currently trades at a price-to-earnings (P/E) ratio of 11.69, which analysts view as attractive given the company’s dominant market share and improving fundamentals.

Brokerages Stay Bullish on LIC

Global brokerage JP Morgan has maintained its ‘Overweight’ rating on LIC, while slightly lowering its target price to Rs 1,071 from Rs 1,115, implying a 15 per cent upside from current levels. The firm cited LIC’s improved solvency position and operational efficiency, even as it noted that the Q1 performance was mixed.

Anil Singhvi’s Technical View

Market expert Anil Singhvi shared a positive short-term outlook on LIC from a technical standpoint. According to Singhvi, the stock has strong support at Rs 858, while resistance is seen at around Rs 900, a level it surpassed during the day’s rally.