LICI Posts Strong Yearly Profit Growth Despite Quarterly Dip
LIC's Q1 profit rose 24% from last year, but both revenue and profit declined sharply from the previous quarter.
Life Insurance Corporation of India reported a 24% yearly profit jump in Q1 FY27, though earnings softened from the prior quarter. The net profit margin improved year-on-year.
Life Insurance Corporation of India (LIC) delivered a mixed set of earnings for the first quarter of fiscal year 2027. While profit showed robust growth compared to the same period last year, both revenue and earnings softened significantly from the preceding quarter, highlighting the insurance giant's quarterly volatility.
The company's revenue for the quarter ended June 2026 stood at ₹2,41,166 crore, a 7% increase year-on-year. Profit after tax grew even faster, rising 24% to ₹13,587 crore. This stronger profit growth lifted the net profit margin to 5.6%, a 70 basis-point improvement from the 4.9% margin in Q1 FY26. However, the figures represent a step down from the exceptionally strong fourth quarter of FY26, with revenue down 13.8% and profit down 42.1% sequentially.
A look at the last five quarters shows the trajectory of LIC's earnings:
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period Ended | June 2026 | March 2026 | June 2025 |
| Revenue (₹ Cr) | 241,166.45YoY +7% | 279,909.41 | 225,451.02 |
| Profit (₹ Cr) | 13,586.69YoY +24% | 23,468.47 | 10,958.89 |
| Net Profit Margin | 5.6%YoY +14% | 8.4% | 4.9% |
The trailing twelve-month (TTM) net profit margin stands at 6.0%, suggesting the latest quarter's margin is slightly below the recent average. On the quality front, LIC maintains a strong balance sheet with zero debt and a high return on equity of 37.7%.
The stock's valuation remains at a significant discount to the industry, with a price-to-earnings (P/E) ratio of 4.0 compared to the sector average of 10.9. The key question for investors is whether the Q1 margin represents a sustainable level or if it will revert closer to the higher Q4 FY26 peak in the coming quarters.
Live Chart
· LICI
(BSE)
ISIN: INE0J1Y01017
Also read
Want this applied to your portfolio?
Talk to a HexaWealth advisor, or sync your mutual fund data for insights tailored to your holdings.