LIC shares fall 3% as Q2 VNB misses estimates. Jefferies cuts target but lists 3 reasons to buy the stock

The Economic Times · Debaroti Adhikary · 2026-11-06 04:10 UTC

LIC reported a 20% year-on-year rise in Q2 consolidated net profit to Rs 12,115 crore, while net premium income grew 16% to Rs 1.47 lakh crore, supported by higher single-premium collections. Net investment income in the shareholders' account surged 38% to Rs 2,855 crore. Its solvency ratio improved to 2.35 from 2.13 a year ago, while the expense ratio declined to 10.26% from 12.05%.

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While the bottom line increased from the same period last year, it declined 11% from the Rs 13,548 crore reported in the first quarter of the same financial year. Net premium income meanwhile increased over 16% YoY to Rs 1.47 lakh crore, from Rs 1.26 lakh crore in the September quarter of FY26. This growth in premium income was largely driven by a sharp increase in single-premium collections, reflecting higher contributions from policies where customers pay the entire premium upfront. The shares of the company fell to Rs 396.45 apiece on Friday morning.

Net investment income in the shareholders' account increased by around 38% YoY to Rs 2,855 crore, from Rs 2,066 crore a year-ago. LIC's solvency ratio improved to 2.35 as of September 2026, from 2.13 a year earlier. However, the ratio declined sequentially from 2.42 in the June quarter. The insurer's expense of management ratio improved to 10.26% from 12.05% a year earlier, reflecting better cost efficiency.

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