LIC Share: 1:1 Bonus Issue Record Date, Q4 Results, and New Stock Target From Citigroup

Synopsis: Life Insurance Corporation of India reported strong Q4 FY26 growth in premium income and profit, announced a final dividend and fixed record date for 1:1 bonus issue, while brokerages remained positive on improving margins, profitability, and valuation outlook.

This Large-Cap Stock, engaged in providing life insurance services, pension plans, investment products, and financial protection solutions to individuals and businesses across India and overseas markets, jumped 4.78 percent after the company reported its March quarterly results and announced a dividend of Rs. 10 per share, also set a record date for a bonus issue, while brokerages shared positive views on its future outlook.

With a market capitalization of Rs. 5,18,649.81 crores, the share of Life Insurance Corporation of India has reached an intraday high of Rs. 839 per equity share, rising nearly 4.78 percent from its previous day’s close price of Rs. 800.70. Since then, the stock has retreated and is currently trading at Rs. 820.15 per equity share. 

Q4 FY26 Result Walkthrough:

Coming into the quarterly results of Life Insurance Corporation of India, the company’s consolidated net premium income increased by 11.59 percent YOY, from Rs. 1,47,917.19 crore in Q4 FY25 to Rs. 1,65,067.19 crore in Q4 FY26, and grew by 31.02 percent QoQ from Rs. 1,25,988.15 crore in Q3 FY26.

In Q4 FY26, Life Insurance Corporation of India’s consolidated net profit increased by 23.26 percent YOY, reaching Rs. 23,467 crore compared to Rs. 19,039 crore during the same period last year. As compared to Q3 FY26, the net profit has increased by 81.80 percent, from Rs. 12,908 crore. The basic earnings per share increased by 23.26 percent and stood at Rs. 37.10 as against Rs. 30.10 recorded in the same quarter in the previous year, FY2025.

Dividend: Life Insurance Corporation of India’s board of directors has recommended paying a final dividend at the rate of 100 percent on the face value of paid-up equity shares of Rs. 10 each for the financial year 2025-26, which is a dividend of Rs. 10 per equity share. The record date for this final Dividend is Thursday, June 25, 2026.

Bonus Issue:

Life Insurance Corporation of India’s Board of Directors has fixed Friday, May 29, 2026, as the Record Date for determining the eligibility of shareholders for the allotment of Bonus Equity Shares.

The board has decided to issue bonus shares at a ratio of 1:1, meaning that shareholders will receive one new fully paid-up equity share of Rs. 10 each for every one existing fully paid-up equity share they hold.

For example, if a shareholder owns 1,000 shares of Life Insurance Corporation of India, they will receive 1,000 bonus shares, bringing their total holding to 2,000 shares after the 1:1 bonus issue. 

Annual Performance of FY26:

Life Insurance Corporation of India’s net premium income has increased from Rs. 4,89,775.39 crore in FY25 to Rs. 5,37,603.79 crore in FY26, which has grown by 9.77 percent. The net profit has also grown by 18.90 percent from Rs. 48,320 crore in FY25 to Rs. 57,453 crore in FY26. The annual basic earnings per share increased by 18.90 percent and stood at Rs. 90.84 as against Rs. 76.40 recorded in the financial year 2025. 

In terms of return ratios, the company’s ROCE and ROE stand at 35.1 percent and 37.8 percent, respectively. Life Insurance Corporation of India’s almost debt-free company.

Brokerage Viewpoints:

Citi, a prominent brokerage firm, has recommended a “Buy” call on Life Insurance Corporation of India with a target price of Rs. 1,475 per share, indicating an upside potential of 84.21 percent from its previous day’s close price of Rs. 800.70 per share. 

Life Insurance Corporation of India received a “Buy” rating from Citi, supported by strong operational performance and continued gains from improving policy persistency, which is helping profitability and business quality. The brokerage also believes valuations remain attractive compared to peers, offering room for upside. However, Citi noted that the promoter holding structure continues to be an overhang on the stock, as concerns around future stake dilution and government ownership may weigh on investor sentiment.

Similarly, Bernstein has recommended a “Market-perform” call on Life Insurance Corporation of India with a target price of Rs. 940 per share, indicating an upside potential of 17.40 percent from its previous day’s close price. 

Life Insurance Corporation of India reported strong growth in both revenue and profit during Q4FY26, supported by a better product mix that helped improve margins. Bernstein believes the company is benefiting from higher sales of profitable products, which is strengthening overall earnings performance.

The brokerage maintained its “Market-perform” rating as it expects LIC’s margins to gradually improve and move closer to private sector peers over time. However, Bernstein also sees limited room for sharp re-rating in the near term, keeping a balanced view on the stock.

Likewise, Macquarie has also recommended a “Outperform” call on Life Insurance Corporation of India with a target price of Rs. 1,100 per share, indicating an upside potential of 37.38 percent from its previous day’s close price. 

Life Insurance Corporation of India delivered a strong performance with better-than-expected margin expansion, which positively surprised Macquarie. The company also reported healthy APE growth, reflecting steady demand and improving business momentum. A better product mix helped strengthen VNB margins, indicating improved profitability across policies.

Macquarie maintained its “Outperform” rating as it believes LIC’s improving earnings quality and attractive valuation continue to provide support for the stock’s long-term growth potential.

Company Overview:

The Life Insurance Corporation of India (LIC) is a state-owned life insurance and investment corporation headquartered in Mumbai, India. Established in 1956, it is the largest life insurer in India and one of the country’s most trusted financial institutions, serving millions of policyholders nationwide.

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