LIC share price: Shares of India’s largest insurer, Life Insurance Corporation of India (LIC), which debuted in 2022, have had a turbulent period on Dalal Street.
While still struggling to reclaim its IPO price of ₹949, LIC stock has gained 20% in six months, raising hopes of a further rally.
LIC share price ended 1% higher at ₹883.65 on the BSE today. The large-cap insurer and market leader has a 63.51% market share in first-year premium income (FYPI) as of Q1 FY26. This includes a 38.76% share in the individual business segment and a dominant 76.54% share in the group business, which is significantly ahead of private players such as HDFC Life and ICICI Prudential.
However, according to Harshal Dasani, Business Head at INVAsset PMS, structural challenges remain for LIC – private insurers are consistently gaining market share in high-margin segments, while LIC remains heavily dependent on traditional policies.
Even Emkay Global opined in a latest report that the private sector market leaders are well-positioned for growth in the life insurance space.
Key metrics
In terms of profitability metrics, LIC reported strong growth in Annual Premium Equivalent (APE) and Value of New Business (VNB), which increased by 9.4% and 20.7% year-on-year, respectively, in Q1 FY26.
However, the latest data from August shows that the industry’s total APE grew 6.6% YoY, with the private sector witnessing ~11% YoY growth, whereas LIC posted a marginal 0.2% decline.
Is LIC stock a good buy?
Vaibhav Vidwani, Research Analyst at Bonanza, believes that a product mix-driven possible rise in VNB margin is achievable, well-demonstrated by LIC.
“However, volume growth shall be key for double-digit volume VNB growth. Going ahead, management remains confident of growth (both par/non-par), recovering persistency via internal measures while underlining scope for further improvement in margins. Further improvement in VNB margin and tailwinds in investment returns could lead to a positive surprise ahead,” the analyst added.
LIC is available at an attractive valuation, and we can expect price movement to a level above ₹1000, added Vidwani.
However, Dasani believes that LIC shares could continue to oscillate in a range until clarity emerges on margin expansion, digital distribution, or market share defence.
LIC shares – Technical outlook
Meanwhile, on technical charts, LIC seems to be witnessing a steady rise to key levels.
“LIC is currently developing a 42-week-long cup and handle pattern on the weekly charts, but the structure is still far from being fully mature. The ongoing consolidation indicates steady accumulation, and price action suggests the stock is gradually moving towards the neckline placed at 979. A rally to this level looks highly probable in the near term,” said Anshul Jain, Head of Research at Lakshmishree.
Post that, a decisive breakout above 979 will confirm the bullish pattern and open the next round of upside momentum, Jain added. From the current setup, he believes the stock is well-positioned to move toward 979 initially, with strong breakout potential thereafter.