Life Insurance Corporation Of India Earnings Summary — Q1 FY2027
LIC Reports Strong 22.8% Profit Growth and Significant VNB Margin Expansion in Q1 FY2027
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 13.3% sequentially in Q1 FY2027.
- Revenue of ₹2.40 Lakh Cr is 6.8% higher year-on-year.
- Revenue has compounded at 0.2% annualised over the last 10 quarters.
- Net profit of ₹13,584 Cr is 24.0% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -0.8% annualised across the period.
- Operating margin stands at 5.8% in Q1 FY2027.
- Operating margin expanded by 118 bps year-on-year.
- Over the last two years operating margin has expanded by 123 bps.
- PBT margin is 6.4%.
- Expense growth of 5.4% remained below revenue growth of 6.8%.
- Operating profit of ₹14,012 Cr is 33.8% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 60/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 2,39,866 | 2,76,744 | 2,35,954 | 2,41,524 | 2,24,671 | 2,43,134 | 2,03,751 | 2,31,132 | 2,11,952 | 2,38,717 |
| Expenses | Stable | 2,25,854 | 2,65,521 | 2,23,588 | 2,32,032 | 2,14,198 | 2,21,621 | 1,91,818 | 2,24,544 | 2,02,180 | 2,37,152 |
| Operating Profit | Volatile | 14,012 | 11,222 | 12,366 | 9,492 | 10,474 | 21,514 | 11,934 | 6,588 | 9,773 | 1,564 |
| Operating Margin | Volatile | 5.8% | 4.1% | 5.2% | 3.9% | 4.7% | 8.8% | 5.9% | 2.9% | 4.6% | 0.7% |
| Other Income | Volatile | 1,301 | 3,166 | 822 | 1,044 | 780 | 954 | 818 | 794 | 1,001 | 14,249 |
| Interest | Insufficient data | — | — | — | — | — | — | — | — | — | — |
| Depreciation | Insufficient data | — | — | — | — | — | — | — | — | — | — |
| Profit Before Tax | Improving | 15,312 | 14,388 | 13,188 | 10,537 | 11,253 | 22,468 | 12,752 | 7,382 | 10,774 | 15,813 |
| Tax | Volatile | 1,728 | -9,079 | 1,931 | 1,525 | 1,645 | 3,429 | 1,743 | 1,145 | 1,629 | 1,971 |
| Net Profit | Volatile | 13,584 | 23,467 | 12,930 | 10,098 | 10,957 | 19,039 | 11,009 | 7,729 | 10,544 | 13,842 |
| Net Margin | Accelerating | 5.7% | 8.5% | 5.5% | 4.2% | 4.9% | 7.8% | 5.4% | 3.3% | 5.0% | 5.8% |
Key Takeaways
- Profit After Tax (PAT) surged 22.81% YoY to ₹13,492 crore, driven by improved product mix and investment performance.
- Value of New Business (VNB) grew significantly by 61.32% to ₹3,136 crore, with net VNB margins expanding from 15.4% to 22.9%.
- Individual New Business Premium increased by 14.48% YoY, reflecting strong demand for individual policies.
- The share of Non-Participating (Non-Par) products within the Individual Business APE increased to 32.49% from 30.34% YoY.
- Solvency Ratio improved to 2.42 as of June 30, 2026, compared to 2.17 in the previous year, indicating a stronger capital position.
- Overall market share by First Year Premium Income (FYPI) remained dominant at 60.10%.
- Assets Under Management (AUM) crossed the ₹59 lakh crore mark, representing a 4.10% YoY growth.
- Overall expense ratio saw a slight uptick of 16 bps to 10.63% due to operational and distribution costs.
Management Guidance
Management is focused on a market share strategy that balances leadership in both Individual and Group segments with margin expansion. The current strategic pivot centers on product diversification, specifically shifting toward high-margin Non-Par and Linked products to drive VNB growth.
Sentiment Shift
Improving
The massive 750 bps expansion in VNB margins and 61% VNB growth indicates that LIC is successfully transitioning its product mix toward higher profitability, addressing historical concerns about low margins compared to private peers.
Outlook
The outlook remains robust as LIC approaches its 70th anniversary. The corporation aims to sustain market leadership while further optimizing its product mix. The recent successful OFS by the Government of India has also widened the shareholder base and improved market liquidity for the stock.
From the Annual Report (Key Quotes)
“Our VNB has grown by 61% plus and our VNB margin has expanded by 7.5% to 22.90% this year. This is a direct outcome of our product diversification and distribution strategy.”
“LIC continues to be the market leader in Indian life insurance business with an overall market share of 60.10%.”
“This year on 1st September 2026 LIC shall complete 70 years of existence and we hope we will bring many occasions of joy to our customers through innovative product launches.”
Official Quarterly Documents
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This summary is AI-generated from Life Insurance Corporation Of India's latest quarterly filing and earnings call. For informational purposes only — not investment advice.