LIC Reports Q2 FY26 Profit of Rs 10,053 Crore, Surpassing Estimates

Life Insurance Corporation of India (LIC) has released its financial results for the second quarter of the fiscal year 2025-2026, reporting a net profit of Rs 10,053 crore for the period ending on 30 September 2025. This figure reflects a remarkable increase of 31.9 per cent compared to the same quarter last year, significantly exceeding analysts' projections.

According to a regulatory filing, LIC's net premium income, a crucial indicator of revenue for insurance companies, rose to Rs 1.26 lakh crore, up from Rs 1.20 lakh crore during the corresponding quarter of the previous year. Despite the profit performance exceeding expectations, the premium income fell short of the anticipated Rs 1.29 lakh crore, as reported by Zee Business.

Analysts had predicted a net profit of Rs 8,100 crore for the quarter, illustrating a notable divergence from the actual results.

In a statement regarding the company’s outlook, R Doraiswamy, Chief Executive Officer and Managing Director of LIC, expressed optimism about the recent changes to the Goods and Services Tax (GST) regime that were announced by the Government of India in September 2025. "We at LIC are very optimistic about the positive impact of the GST changes announced for the Insurance Industry. It is our firm belief that these changes are in the best interest of customers and will lead to further accelerated growth of the life insurance industry in India," he stated.

Doraiswamy emphasised that LIC is committed to ensuring that the benefits from the GST reforms are passed on to customers. He reiterated the company’s responsibility as a leader in the life insurance sector to enhance insurance penetration and density, with the objective of achieving ‘Insurance for All’ by the year 2047.

In addition to the positive profit figures, LIC reported a notable enhancement in its asset quality. The gross non-performing assets (NPAs), which represent the proportion of bad loans, decreased to 1.34 per cent of total assets, down from 1.42 per cent a year prior.

Another crucial metric, the solvency ratio, which measures a company's ability to meet its long-term financial obligations, improved to 213 per cent, up from 198 per cent in the previous year. This indicates a robust capacity for LIC to fulfil its financial commitments.

In terms of stock performance, LIC shares experienced a decline of 1.2 per cent, closing at Rs 895.5 each on the Bombay Stock Exchange (BSE). This downturn occurred amidst a broader market trend, as the Nifty50 index also faced a drop over the two preceding trading sessions. Year-to-date, LIC's share price has remained largely stable, in contrast to a 7.4 per cent increase in the Nifty50 benchmark, suggesting a period of underperformance for LIC's stock.

Overall, LIC's financial results for the second quarter of FY26 highlight a strong profit trajectory alongside improvements in asset quality and solvency ratios, despite some challenges in premium income figures.