LIC Shares Can Rally Nearly 10% After Strong Q1 Earnings, Says SEBI RA SharesNServices

The company’s Q1 showed steady growth in profit, premiums, and assets under management, with the analyst noting a bullish chart pattern supported by strong fundamentals.

Shares of Life Insurance Corporation of India (LIC) rose nearly 4% on Friday after the company reported a 5% year-on-year rise in net profit for the first quarter (Q1).

Q1 Earnings Review

LIC recorded a net profit of ₹10,987 crore in Q1 of FY26, which is 5% higher than the same quarter of the previous year. Net premium income was at ₹98,889 crore, up 5% on a year-on-year (YoY) basis. 

The new business premium in the quarter was up 4.9% at ₹60,262 crore. Total annualized premium equivalent (APE) rose 9.45% to ₹12,652 crore.

Value of new business (VNB) surged 20.7% to ₹1,944 crore, with margins at 15.4%, improving from 13.9% a year earlier. Assets under management increased by 6.47% to ₹57.05 lakh crore.

According to SEBI-registered analyst SharesNServices, strong VNB growth and margin expansion indicate a healthier product mix and improved long-term value creation.

Technical Breakdown

SharesNServices said LIC shares have strong support in the ₹820–₹860 zone and set near-term targets at ₹940–₹1,000. 

A breakout above ₹1,020 could open the way for levels at ₹1,100, ₹1,300 and ₹1,500 or higher, the analyst said, adding that the pattern would be invalidated if the stock closes below ₹780.

The stock is forming an inverse head and shoulders pattern, with positive RSI divergence signaling improving momentum despite recent retests of lows. 

The long-term uptrend channel remains intact, with a recent volume spike at key support suggesting possible accumulation.

On Stocktwits, retail sentiment for LIC was ‘bullish’ amid ‘normal’ message volume.

LIC’s stock has risen 2.3% so far in 2025.

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