
Shares of Life Insurance Corporation of India continued their strong upward momentum on Tuesday, supported by stellar quarterly earnings, a bonus share announcement, and a dividend declaration. LIC shares closed at ₹855.15, gaining ₹17.95 or 2.14% during the trading session. The stock also touched an intraday high of ₹857.
With this latest rally, LIC’s stock has surged by 7.25% in just five trading sessions, making it one of the top-performing PSU stocks in the market this week.
Why Are LIC Shares Rising?
There are two major factors driving the sharp rally in LIC shares:
Record quarterly profit for Q4 FY26
Announcement of bonus shares in a 1:1 ratio
Investor sentiment strengthened significantly after LIC reported outstanding financial results for the quarter ending March 2026. According to market data, LIC emerged as the most profitable company in India’s financial sector during the fourth quarter of FY 2025-26.
LIC Board Approves Bonus Shares
LIC’s Board of Directors approved the issuance of bonus shares by utilizing reserves worth ₹6,325 crore available as of December 31, 2025.
Under the approved proposal:
Investors will receive bonus shares in a 1:1 ratio
Shareholders will get one additional share for every one share held
The company has fixed May 29, 2026, as the record date for determining eligible shareholders.
This means investors whose Demat accounts hold LIC shares on the record date will qualify to receive the bonus shares.
LIC Declares Final Dividend
Alongside the bonus issue, LIC has also announced a final dividend of ₹10 per equity share for FY26.
The company has set June 25, 2026, as the record date for dividend payment. This announcement has further boosted investor confidence, especially among long-term shareholders seeking both capital appreciation and regular income.
LIC Reports Strong Q4 Results
LIC delivered impressive financial performance in the March quarter, further strengthening market optimism around the stock.
Key highlights of LIC’s Q4 FY26 results include:
Net profit jumped 23%
Quarterly profit reached ₹23,420 crore
Strong growth in overall profitability
Improved investor sentiment toward PSU insurance stocks
The company’s strong earnings performance has encouraged brokerage firms to turn increasingly bullish on LIC shares.
Brokerages Raise Target Price
Several leading brokerage firms have upgraded their outlook on LIC following the strong earnings report and shareholder-friendly announcements.
Brokerage Recommendations:
JM Financial: Maintained ‘Buy’ rating; target price raised from ₹888 to ₹960
HDFC Securities: Upgraded to ‘Buy’; target price maintained at ₹1,110
MK Global: Issued ‘Buy’ rating with target price of ₹1,100
Analysts believe LIC’s improving profitability, attractive valuation, and government backing continue to make it a strong long-term PSU investment opportunity.
Who Will Receive LIC Bonus Shares?
According to company rules, only those investors who hold LIC shares in their Demat accounts as of May 29, 2026, will be eligible to receive the bonus shares.
Investors buying shares after the ex-bonus date will not qualify for the free additional shares.
LIC Stock Remains in Focus
Following the bonus issue announcement and strong financial performance, LIC shares are expected to remain in focus among retail and institutional investors. Market experts believe the combination of dividend income, bonus shares, and improving earnings could continue supporting positive momentum in the stock over the coming sessions.
As India’s largest insurance company, LIC remains one of the most closely watched PSU stocks in the market, particularly among long-term investors seeking stable growth and dividend returns.
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