LIC Share Price jumps 4% Intraday: Reasons explained

25 May 2026 , 11:50 AM

India’s largest insurer, Life Insurance Corporation of India, has emerged as the highest profit-making company in India’s financial sector for the March quarter (Q4 FY26), after reporting a strong 23% year-on-year rise in net profit along with its first-ever bonus share issue announcement.

The stellar quarterly performance, improving financial metrics, and shareholder-friendly actions boosted investor sentiment, pushing LIC shares nearly 4% higher intraday following the results announcement.

LIC Q4 FY26 Net Profit Rises 23% YoY

LIC reported a consolidated net profit of around ₹23,420 crore in Q4 FY26, compared to ₹19,013 crore in the corresponding quarter last year, reflecting robust operational performance and growth across key business segments.

With this performance, LIC overtook major banking giants to become the most profitable financial sector company in India during the March 2026 quarter.

Profit Comparison: LIC vs SBI vs HDFC Bank

Among India’s leading financial institutions:

• Life Insurance Corporation of India reported Q4 FY26 profit of ₹23,420 crore
• State Bank of India posted quarterly profit of ₹19,684 crore
• HDFC Bank reported profit of ₹19,221 crore
• ICICI Bank posted FY26 annual profit of ₹50,147 crore

LIC also maintained its position as the highest profit-making Central Public Sector Enterprise (CPSE) during FY26.

SBI Retains Lead in Annual Profitability

While LIC dominated quarterly profitability, SBI remained India’s most profitable financial institution on a full-year basis.

FY26 Annual Net Profit Comparison

• SBI: ₹80,032 crore
• HDFC Bank: ₹74,670 crore
• LIC: ₹57,419 crore
• ICICI Bank: ₹50,147 crore

The comparison highlights the strong earnings momentum across India’s banking and financial services sector despite global macroeconomic uncertainties.

LIC’s Assets Under Management Cross ₹57 Lakh Crore

LIC continued to strengthen its balance sheet and market leadership during FY26.

Key Operational Highlights

• Assets Under Management (AUM) rose 5% YoY to ₹57.29 lakh crore as of March 31, 2026
• Total premium income increased 10% YoY during FY26
• Adjusted net worth surged to ₹1.69 lakh crore from ₹1.20 lakh crore in FY25

The rise in AUM and premium income reflects continued policyholder confidence and improving insurance penetration in India.

LIC Announces First-Ever 1:1 Bonus Issue

One of the biggest highlights of the earnings announcement was LIC’s maiden bonus share issue.

The insurer announced a 1:1 bonus issue, meaning shareholders will receive one additional share for every existing share held.

LIC Bonus Issue Record Date

LIC fixed May 29, 2026, as the record date to determine shareholder eligibility for the bonus shares.

The announcement significantly boosted market sentiment and triggered fresh buying interest in the stock.

LIC Share Price Jumps After Earnings

Following the strong Q4 earnings and bonus issue announcement, LIC shares rallied sharply on the stock exchanges.

LIC Stock Performance

• LIC shares gained nearly 4% intraday after the announcement
• The stock extended gains for the second consecutive session
• Shares have risen around 6% in the last two trading sessions
• However, the stock still remains down nearly 7% over the past six months

LIC’s current market capitalisation stands at approximately ₹5.27 lakh crore, making it one of India’s most valuable financial institutions.

Other PSU Companies Also Report Strong Q4 Earnings

Several major public sector companies also reported healthy quarterly profits during Q4 FY26.

PSU Q4 FY26 Profit Snapshot

• Indian Oil Corporation: ₹11,378 crore
• Coal India: ₹10,839 crore
• NTPC: ₹8,747 crore
• Power Finance Corporation: ₹8,598 crore

The earnings indicate continued resilience among India’s state-run enterprises despite volatile global commodity prices and geopolitical uncertainties.

Vodafone Idea Tops Overall Corporate Profit List

Across the broader corporate sector, Vodafone Idea reported the highest quarterly profit at ₹51,970 crore. However, the profit surge was largely attributed to relief in statutory liabilities rather than core operational growth.

Meanwhile, Reliance Industries posted Q4 net profit of ₹16,971 crore, lower than ₹19,407 crore recorded in the same quarter last year.

Outlook for LIC

LIC’s strong profitability, rising premium income, expanding AUM, and improving net worth indicate that the insurer continues to maintain its dominant position in India’s insurance sector.

The first-ever bonus issue is expected to improve retail investor participation and further strengthen market sentiment around the stock. Analysts believe LIC could continue benefiting from improving insurance penetration, stable market conditions, and long-term growth in financial savings.

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