Shares of Life Insurance Corporation of India (LIC) have seen a significant rally, gaining approximately 7% over three consecutive trading sessions, with the stock closing at Rs 853.40 on Tuesday. This upward momentum is attributed to a combination of strong fourth-quarter financial results, an upcoming bonus share issue, and a proposed dividend.
Robust Q4 FY26 Performance Fuels Investor Confidence
According to ACE Equity data, LIC emerged as the highest profit-making entity in India's financial sector for the March 2026 quarter (Q4 FY26). The insurer delivered a strong operational performance, marked by healthy premium growth and improved margins.
- Individual Annualised Premium Equivalent (APE) grew by 16%.
- Group APE saw a substantial increase of 37%.
- Total APE rose by 22%.
The Value of New Business (VNB) margin for FY26 stood at 21.2%, implying a robust 24.9% margin specifically for Q4. Furthermore, the VNB margin expanded by 360 basis points year-on-year in FY26, benefiting from a favorable product mix and refined economic assumptions.
Brokerages Upgrade Outlook for LIC Stock
Following the impressive results, several brokerages have revised their ratings and target prices for LIC shares:
- JM Financial retained its 'Buy' rating and increased its 12-month target price to Rs 960, up from Rs 888 previously.
- HDFC Securities upgraded LIC shares to a 'Buy' rating, maintaining its target price at Rs 1,110.
Bonus Shares and Dividend Proposal Boost Sentiment
Investor sentiment has also been significantly buoyed by LIC's announcement of a bonus share issue and a recommended final dividend.
1:1 Bonus Share Issue Approved
LIC's board of directors approved the issuance of bonus equity shares in a 1:1 ratio. This means shareholders will receive one additional share for every share they hold. The company plans to capitalize Rs 6,325 crore from its reserves and surplus for this purpose.
- Approval Date: April 13, 2026
- Ex-Date & Record Date: May 29, 2026
- Last Day to Buy for Eligibility: May 27, 2026 (due to market closure on May 28 for Bakri Id and T+1 settlement cycle)
Final Dividend Recommended
In addition to the bonus issue, LIC has recommended a final dividend of Rs 10 per equity share (face value Rs 10 each) for the financial year 2026. This recommendation is subject to shareholder approval.
- Dividend Record Date: June 25, 2026
Investors aiming to qualify for the bonus shares must ensure their purchases are completed by May 27, 2026, to ensure shares are credited to their demat accounts by the record date.