India’s largest life insurance company LIC has increased its stake in two famous FMCG companies of the country, Tata Consumer Products and Dabur India. This move reflects LIC’s growing confidence in the Consumer Products sector, which continues to perform strongly despite recent market volatility.
LIC’s increasing confidence and strong profits
In the first quarter of FY 2026 (April-June 2025), LIC registered a consolidated net profit of ₹ 10,957 crore. This is about 3.9% more than the same period last year. This result clearly indicated that LIC has been able to achieve stable returns by diversifying its investment portfolio.
LIC’s stake in Tata Consumer Products increased
According to exchange filings, on October 24, LIC increased its stake in Tata Consumer Products from 6.633% to 8.645%. That means there has been an increase of about 2%. It is also worth noting that there has been no change in the total equity share capital of Tata Consumer (98.95 crore shares). This means that LIC has purchased this stake from the secondary market and not through any new share issue.
However, despite the increase in LIC’s stake, Tata Consumer shares closed 0.65% lower at ₹1,154.50 per share on Friday. But in the last five days this stock has given a gain of 3.24%, while in one month it has given returns of more than 2%.
LIC also increased stake in Dabur India
LIC has increased its stake not only in Tata Consumer but also in Dabur India. Now the total stake of the company has increased from 4.918% to 6.985%. That means LIC has purchased about 2.07% stake and 3.66 crore additional shares.
This purchase was made between 18 February 2025 and 23 October 2025. On Friday, Dabur shares closed at ₹507 per share, a decline of less than 1%. The stock has registered a rise of about 2% in the last five trading days and about 4.7% in the last six months.
Why is LIC betting on FMCG?
This step of LIC is an indication that the organization wants stable and reliable returns in the long run. The FMCG sector is generally less affected by market fluctuations as its demand always remains the same, whether the economy goes up or down. Both Tata Consumer and Dabur companies are based on India’s strong consumer base and are leaders in their respective sectors. Therefore, LIC’s increasing investment in these companies shows confidence in their long-term growth.