LIC bonus share: Price target ahead of 1st ever announcement today | Q4 results preview

Shares of Life Insurance Corporation of India (LIC) opened half a per cent lower at Rs 794.55 on Monday ahead of its board meeting later today to consider and approve its maiden bonus shares issue. The total market capitalization of the insurance major stood above Rs 5.02 lakh crore as of opening. However, the stock dropped to Rs 782 on Monday, down 2 per cent.
 

LIC bonus issue

“It is to inform that a meeting of the board of directors of the Life Insurance Corporation of India is scheduled to be held on Monday, April 13, 2026 to inter-alia consider and recommend a proposal for issue of Bonus shares in accordance with the applicable provisions, subject to the approval of the shareholders,” said LIC in an exchange filing on April 7.
 

LIC Q4 results expectations

YES Securities is expecting LIC’s new business premium (NBP) at Rs 73,760.1 crore, up 31 per cent on a quarter-on-quarter (QoQ) basis. Annual premium equivalent (APE) is seen at Rs 18,343.4 crore, up 23 per cent QoQ but down 3 per cent down on a yearly basis. Value of new business (VNB) is seen at Rs 3,898 crore, up to 10 per cent YoY and 23 per cent QoQ.

“We pencil in new business growth assumptions based on trends observed till February 2026, when LIC had displayed NBP/APE growth of 13 per cent/7 per cent for 2M4QFY26 (January and February 2026) over 2M3QFY26 (October and November 2025). We pencil in a VNB margin expansion of 3bps QoQ based on expected business mix change,” it added.

Emkay Global in a note said LIC may deliver a healthy 13 per cent growth in Annual Premium Equivalent (APE), driven by healthy growth in the Group segment and owing to a favorable base. Resultantly, for FY26E, LIC is likely to post 15 per cent APE growth, it said.

LIC is likely to deliver a 20.5 per cent VNB margin for Q4FY26, led by continued focus on non-par products. For FY26E, 19.3 per cent VNB margin is likely to drive 26 per cent growth in VNB, said Emkay with a ‘buy’ rating and trimmed target price of Rs 1,000 from Rs 1,100 earlier.

B&K Securities sees LICs revenue at Rs 5,792.1 crore, up 23.6 per cent YoY and 55.7 per cent QoQ. Ebitda margin is likely to improve by 150 bps to 20.2 per cent. Adjust PAT is seen at Rs 4,719 crore, up 33.5 per cent YoY and 48.5 per cent QoQ. B&K Securities has a ‘hold’ rating on LIC of India.

Antique Stock Broking is expecting a VNB of Rs 12,690 crore for the entire financial year 2025-26, with a return on EV at 10.8 per cent. It has a ‘buy’ rating on the stock with a target price of Rs 970. JM Financial has a ‘buy’ rating on the stock with a target price of Rs 1,300 apeice.
 

LIC dividend history

Since its listing in May 2022, LIC has announced five dividends so far. The stock trade ex-date for dividend in July 2025 (final dividend of Rs 12 per share), July 2024 (final dividend of Rs 6 per share), February 2024 (interim dividend of Rs 4 per share), July 2023 (final dividend of Rs 3 per share) and August 2022 (dividend of Rs 1.50 per share).
 

LIC IPO and post listing performance

Shares of LIC of India were listed at the bourses in May 2022 when the company raised a total of Rs 20,557 crore via IPO, which was sold for Rs 949 to retail investors and 904 for policyholders. The stock is down 16 per cent and Rs 12 per cent from their respective issue price.

To recall, LIC shares hit its all-time high near Rs 1,180 in August 2024 but the stock is down 33 per cent from those levels. The Government of India owns 96.5 per cent stake in LIC, while public shareholders own only 3.5 per cent stake in it. It has been immune from public shareholding norms from the parliament of India.