LIC Q1 results preview: Life Insurance Corporation of India (LIC) will announce its April-June quarter (Q1) earnings on Thursday, August 7. Experts believe India’s largest insurance company may report an improvement in VNB (value of new business) margin on a year-on-year basis, largely due to a favourable product mix. However, sequentially, the numbers may be weak.
Apart from the key numbers and growth metrics, investors will focus on the company’s growth outlook and updates on the acquisition of a health insurance company.
What do experts expect from LIC’s Q1 results?
Kotak Institutional Equities said LIC will likely report flat APE (annualised premium equivalent) in Q1FY26E as the company has reported flat APE in April and May 2025 on a YoY basis.
“APE may grow 1 per cent YoY but decline 38.1 per cent QoQ. VNB may rise by 8.3 per cent YoY but may drop 50.7 per cent QoQ.
Kotak believes LIC’s VNB margins will expand 100 bps YoY to 14.9 per cent, driven by rise in share on high-margin non-par policies. However, on a QoQ basis, VNB margin will drop 382 bps.
Brokerage firm Motilal Oswal Financial Services expects LIC’s VNB margins to improve due to a favourable product mix and scale.
“New business growth on a YoY basis is projected to remain in single digits, led by an increasing focus on non-par products. The share of non-par will inch up, led by the full benefits of non-par product launches in the first half of the year (H1FY25),” said Motilal Oswal.
Motilal Oswal’s estimates suggest LIC’s new business APE may grow 6 per cent YoY. VNB is expected to grow by 22 per cent YoY, while VNB margins may come in at 16 per cent compared to 13.9 per cent YoY.
YES Securities expects LIC’s VNB margin contraction of 450 bps QoQ based on expected business mix changes and the company’s accounting policy of actual cost basis.
“We pencil in new business growth assumptions based on trends observed till May 2025, when LIC had displayed NBP/APE growth/de-growth of 1%/-15% for two months in Q1FY26 (April and May 2025) over the two months in Q4FY25 (January and February 2025),” YES Securities said.
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