What’s Driving LIC Stock's 24.5% Surge Amid Profit Growth?
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Synopsis
Discover how the Life Insurance Corporation of India's stock has surged by 24.5% recently, marking a resurgence in investor confidence due to consistent profit growth. With significant increases in net profit and premium income, LIC's performance reflects strong market leadership and stability.
Key Takeaways
- LIC shares surged by 24.5% from its 52-week low.
- Consistent quarterly profit growth supports investor confidence.
- Net premium income increased by 4.7%.
- VNB showed significant growth, improving profitability.
- LIC declared a dividend of Rs 12 per share.
Mumbai, Oct 27 (NationPress) Shares of the Life Insurance Corporation of India (LIC) have exhibited remarkable growth in recent weeks, climbing approximately 24.5 percent from their 52-week low of Rs 715.35 to a trading value of Rs 890.60, based on information from BSE analytics on Monday.
This significant rebound underscores a resurgence of investor confidence in the nation’s largest life insurer, bolstered by steady earnings growth and strategic business enhancement.
In recent months, LIC’s stock performance has showcased its fundamental stability.
Although the stock experienced slight fluctuations over shorter time frames -- decreasing by 0.35 percent in one week and 0.97 percent over two weeks -- it has demonstrated a 12.25 percent increase over the past six months and an impressive nearly 49 percent rise across three years, indicating long-term resilience.
This upward trend is attributed to robust quarterly results. In August, LIC announced a year-on-year (YoY) growth of 3.91 percent in its consolidated net profit for the April–June quarter of FY26, reaching Rs 10,957 crore, compared to Rs 10,544 crore in the corresponding period last year.
Moreover, its net premium income increased by 4.7 percent to Rs 1,19,618.41 crore, reflecting consistent demand across both individual and group segments.
“In the first quarter of this fiscal year, our overall market share by First Year Premium Income was 63.51 percent, maintaining our leadership in both Individual and Group Business,” stated LIC CEO and MD R. Doraiswamy.
The insurer’s non-participating (non-par) business also exhibited strong growth, with the share of non-par APE in the individual segment rising to 30.34 percent, up from 23.94 percent a year earlier.
The value of new business (VNB) -- a critical profitability indicator -- surged by 20.75 percent to Rs 1,944 crore, while the VNB margin improved by 150 basis points to 15.4 percent.
Additionally, LIC declared a final dividend of Rs 12 per share for the first quarter of the current fiscal year.
Point of View
I observe that LIC's recent stock performance is a testament to its solid fundamentals and strategic positioning. The rise in investor confidence reflects not just good performance but also a robust outlook for the life insurance sector in India. With continuing growth, LIC remains a key player to watch in the financial landscape.
NationPress
27/10/2025
Frequently Asked Questions
What caused the recent surge in LIC stock?
The surge in LIC stock can be attributed to consistent profit growth, strategic business expansion, and increased investor confidence.
How much has LIC's stock increased recently?
LIC's stock has increased by approximately 24.5% from its 52-week low.
What were LIC's recent financial results?
LIC reported a YoY increase of 3.91% in consolidated net profit for the April–June quarter of FY26, reaching Rs 10,957 crore.
What is the market share of LIC in the first quarter?
LIC maintained a market share of 63.51% by First Year Premium Income in the first quarter of the fiscal year.
What is the value of new business for LIC?
The value of new business (VNB) for LIC jumped by 20.75% to Rs 1,944 crore.
