LIC Share Price Insight: Q1 FY27 Results, VNB Growth, And AUM Rise

Nidhi Thakur

August 7, 2026

Key Takeaways

Standalone net profit rose 22.81% YoY to Rs 13,492.03 crore in Q1 FY27.
Total income rose 7.01% YoY to Rs 2,40,390.96 crore, and AUM climbed 4.10% to Rs 59,39,384 crore.
Value of New Business surged 61.32% YoY to Rs 3,136 crore, with VNB margin at 22.9%.
LIC OFS divested 6.5% stake with 82.22 crore shares, floor price Rs 382; LIC completes 70 years on Sep 1, 2026.

LIC Share Price After Q1 FY27: Net Profit, AUM, And VNB Growth

LIC Share Price moved higher following LIC's Q1 FY27 numbers, with the stock rising 1.41% to Rs 393 after the insurer reported a strong set of numbers. The standalone net profit stood at Rs 13,492.03 crore for Q1 FY27, up 22.81% year-on-year from Rs 10,986.51 crore in the same quarter last year. This profit growth occurred alongside a 7.01% rise in total income to Rs 2,40,390.96 crore. Profit before tax (PBT) climbed 20.59% to Rs 15,182.28 crore during the quarter.

The quarter also showcased robust premium growth and policy activity. LIC's total premium income grew 6.75% year-on-year to Rs 1,27,250 crore, with group premium rising 8.61% to Rs 51,834 crore and individual premium increasing 5.52% to Rs 75,416 crore. The insurer sold 31.02 lakh individual policies during the quarter, up 2.06% from 30.40 lakh in the year-ago period. On an Annualized Premium Equivalent (APE) basis, total premium stood at Rs 13,692 crore, with individual business contributing Rs 7,532 crore (55.01% of APE) and group business Rs 6,160 crore (44.99%).

The Value of New Business (VNB) showed a strong trajectory, surging 61.32% YoY to Rs 3,136 crore, while the net VNB margin expanded 750 basis points to 22.9% from 15.4% a year earlier. Persistency ratios on a premium basis stood at 75.33% for the 13th month and 61.12% for the 61st month, compared with 75.63% and 63.85% respectively in the corresponding quarter of the previous year. The Assets Under Management (AUM) increased to Rs 59,39,384 crore as on June 30, 2026, from Rs 57,05,341 crore on June 30, 2025, registering a 4.10% year-on-year rise.

R Doraiswamy, chief executive officer and managing director (CEO & MD) of LIC, said: We are happy to maintain our leadership in both Individual and Group Business during the first quarter of this financial year. Our overall market share by First Year Premium Income was 60.10% for the first quarter of FY 2026-27, and this fits in well with our market share strategy. What gives us even more happiness is that our VNB has grown by 61% plus and our VNB margin has expanded by 7.5 percentage points to 22.90% this year. This is a direct outcome of our product diversification and distribution strategy.

This year on 1st September 2026 LIC shall complete 70 years of existence and LIC hopes to bring many occasions of joy to customers through innovative product launches and other initiatives. Recently, the Government of India divested an additional 6.5% of shares through an Offer for Sale (OFS), selling 82.22 crore equity shares. The issue was subscribed 2.27 times at the close of bidding on 5 August 2026, with the floor price set at Rs 382 per share. As of June 2026, the Government of India held 96.50% stake in LIC.

LIC is engaged in life insurance across domestic and international markets, offering a range of individual and group products including participating, non-participating and unit linked business. The portfolio includes protection, pension, savings, investment, annuity, health, variable and CRAC products. This breadth helps LIC maintain scale and diversify risk. For readers seeking deeper, stock-level insights across LIC shares, Swastika's Sarthi AI stock assistant can be a valuable resource. Swastika's Sarthi AI stock assistant may help align ideas with your investment framework.

For retail investors, LIC's Q1 FY27 performance signals a favorable blend of profitability, durable capital intensity, and high persistency that could influence the LIC share price in the near term. The combination of a rising VNB and expanding VNB margin supports a stronger earnings trajectory, while a solid AUM base adds stability to future new business performance. The ongoing OFS activity and the upcoming 70th anniversary add a layer of market narrative that investors should watch alongside quarterly numbers.

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LIC AUM Growth And What It Signals For Long-Term Investors

The AUM grew to Rs 59,39,384 crore as on June 30, 2026, up 4.10% year-on-year from Rs 57,05,341 crore on June 30, 2025. This expansion points to a larger pool of assets under management that can help LIC weather softer periods in new business sales while continuing to generate fee-based revenue and investment income. AUM resilience is a vital backdrop for a state-backed insurer with a broad distribution network and a diversified product slate. In practical terms, a larger AUM base can support more stable returns over time, improving the durability of LIC's earnings profile for both policyholders and shareholders.

For investors, the 4.10% YoY AUM growth helps balance profitability with scale, which can translate into steadier sales momentum and improved capital efficiency. It also aligns with the company’s stated strategy of product diversification and distribution expansion, which has contributed to the VNB growth observed in Q1 FY27. AUM is not the only driver of value, but it is a crucial ballast that supports long-run growth and risk-adjusted returns for LIC stock in a competitive insurance landscape.

Value Of New Business Growth And Margin Expansion: Implications For LIC Stock Valuation

LIC's Value of New Business (VNB) jumped 61.32% year-on-year to Rs 3,136 crore, while the VNB margin expanded 750 basis points to 22.9% from 15.4% a year earlier. This improvement reflects a combination of favourable product mix, disciplined pricing, and improved distribution efficiency. A higher VNB margin expands the value of future profits from new business, improving the theoretical intrinsic value of LIC stock by signaling stronger profitability on new policies and better risk-adjusted returns on growth initiatives. When investors price LIC stock, the VNB trajectory often serves as a forward-looking proxy for sustainable profitability beyond current year results.

Rising VNB and margins typically translate to better earnings visibility, especially if persistency remains robust and if the company can maintain or improve its market share in First Year Premium Income (FYP). In Q1 FY27, LIC’s FYP share stood at 60.10% for the quarter, which underscores the company’s dominant market position in new business. This market leadership, combined with double-digit VNB growth, supports a constructive view on LIC’s long-run earnings potential, even as macro variables and policyholder behavior can influence quarterly numbers in the near term.

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Persistency, Premium Growth, And Product Diversification: What It Means For Retail Investors

Persistency ratios on a premium basis stood at 75.33% for the 13th month and 61.12% for the 61st month, compared with 75.63% and 63.85% respectively in the corresponding quarter of the previous year. Persistency is a proxy for profitability in a long-term policy book: higher persistency implies more stable future renewals and lower lapse risk, which supports predictable cash flows and earnings quality. LIC's premium mix shows a healthy balance: individual business premium rose 5.52% to Rs 75,416 crore, while group business premium increased 8.61% to Rs 51,834 crore, contributing to a total premium income of Rs 1,27,250 crore (up 6.75% YoY).

From a product perspective, LIC's portfolio spans participating, non-participating, and unit-linked products along with protection, pension, savings, and annuity offerings. The diversification strategy appears to be delivering a broader revenue base, which, in a competitive Indian insurance market, helps cushion against shifts in consumer demand. For retail investors, this product breadth may translate into more resilient earnings in uncertain times, supporting a steadier LIC share price trend as the business adapts to evolving regulatory and market conditions.

LIC OFS, Market Share By First Year Premium Income, And The LIC Share Price Outlook

In a notable regulatory development, the Government of India divested an additional 6.5% of LIC shares through an Offer For Sale (OFS), selling 82.22 crore equity shares. The OFS was subscribed 2.27 times at the close of bidding on 5 August 2026, with the floor price set at Rs 382 per share. This OFS action, alongside LIC’s 60.10% market share by FYP for Q1 FY27, signals a continued government role in LIC’s equity structure while highlighting LIC’s dominant position in attracting new business. As LIC approaches its 70th anniversary on 1 September 2026, the regulatory and market backdrop could influence investor sentiment and, by extension, the LIC share price.

Frequently Asked Questions

What was LIC's standalone net profit in Q1 FY27?

Rs 13,492.03 crore, up 22.81% year-on-year from Rs 10,986.51 crore.

How much did LIC's Assets Under Management (AUM) rise by as of June 30, 2026?

AUM rose to Rs 59,39,384 crore, up 4.10% year-on-year from Rs 57,05,341 crore.

What is the Value Of New Business (VNB) and VNB margin for Q1 FY27?

VNB stood at Rs 3,136 crore, up 61.32% YoY, with VNB margin expanding to 22.9% from 15.4%.

What happened with LIC OFS in this period?

The government divested 6.5% of LIC shares through an Offer For Sale, selling 82.22 crore equity shares at a floor price of Rs 382, with subscriptions at 2.27x.

What was LIC's market share by First Year Premium Income in Q1 FY27?

60.10% for the first quarter of FY 2026-27.

Conclusion

LIC's Q1 FY27 results present a compelling narrative of earnings resilience, higher Value of New Business, and a robust AUM base that together underpin a healthier trajectory for the LIC share price in the medium term. The 70-year milestone approaching in September 2026 adds a strategic, branding, and market narrative that could influence investor sentiment as LIC continues to execute its diversification and distribution strategy.

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Reference :

1 : Business Standard

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