Life Insurance Corporation of India (LIC) shares gained in early trading after the company announced its Q1 FY27 results. The stock rose as much as 2% in morning trade, opening at around ₹393 before climbing to ₹396.85.
LIC announced its quarterly results on August 6, reporting a strong increase in net profit for the quarter ended June 30, 2026.
According to the company's exchange filing, LIC's net profit increased 22.81% year-on-year to ₹13,492 crore in Q1 FY27.
Following the results, brokerage firms have maintained a positive view on LIC shares, with Motilal Oswal reiterating its Buy rating and raising its target price.
Motilal Oswal Raises LIC Share Price Target to ₹480
Domestic brokerage Motilal Oswal has maintained a 'BUY' rating on LIC and increased its target price from ₹388 to ₹480.
Based on the stock price cited in the report, the new target implies potential upside of around 24%. However, the target represents the brokerage's estimate and is not a guaranteed return.
Motilal Oswal highlighted LIC's strong Q1 FY27 performance, particularly the improvement in its Value of New Business (VNB) margin.
The brokerage noted that LIC's VNB margin expanded by 730 basis points year-on-year to 22.9% during the quarter.
Why Is Motilal Oswal Bullish on LIC Stock?
The brokerage's positive outlook is supported by LIC's performance across several key premium and profitability metrics.
During Q1 FY27:
Net premium income increased 7% year-on-year to approximately ₹1.3 trillion.
Renewal premiums grew 3% to around ₹618 billion.
Single premiums increased 9% to approximately ₹564 billion.
First-year premiums rose 22% to around ₹92 billion.
VNB margin expanded 730 basis points year-on-year to 22.9%.
The improvement in VNB margin is particularly important because it indicates stronger profitability from new business written by the insurer.
LIC VNB Margin Outlook
Motilal Oswal expects LIC's VNB margin to continue improving over the coming quarters.
According to the brokerage's assessment, LIC is progressing toward VNB margins closer to the industry average, with the potential to move above 20% and into the mid-20% range.
However, the brokerage also highlighted some uncertainty related to interest-rate movements, which could influence the company's performance and future margins.
LIC Share Price: What Investors Should Watch
The strong Q1 FY27 results and improving VNB margin have strengthened the positive sentiment around LIC shares.
The stock's early gains following the results indicate that investors are paying close attention to the insurer's improving profitability and premium growth.
Motilal Oswal's revised ₹480 target price provides a bullish outlook, but investors should remember that brokerage targets are estimates and actual stock performance can differ depending on market conditions, interest rates, company performance and broader economic factors.
LIC Q1 FY27 Results: Key Highlights
Metric Q1 FY27 Performance
Net profit ₹13,492 crore
Net profit growth 22.81% YoY
Net premium income ₹1.3 trillion
Renewal premium ₹618 billion
Single premium ₹564 billion
First-year premium ₹92 billion
VNB margin 22.9%
VNB margin growth 730 bps YoY
Motilal Oswal rating BUY
Earlier target ₹388
Revised target ₹480
LIC stock intraday high cited ₹396.85
LIC shares rose after the company's Q1 FY27 results, with the stock reaching ₹396.85 in early trading. The insurer reported a 22.81% year-on-year increase in net profit to ₹13,492 crore, while its VNB margin expanded significantly.
Motilal Oswal has retained its BUY rating and raised its LIC share price target to ₹480 from ₹388, citing the company's strong quarterly performance and improving profitability.
Investors should note that the brokerage's target is an estimate and not a certainty. LIC shares can remain sensitive to market sentiment, interest rates and future operating performance.
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