LIC Q2 Results Preview: PSU's net premium likely to grow 8%, VNB margin may shrink—Key expectations

LIC Q2 Earnings Expectations: Public sector life insurance behemoth LIC is slated to report its financial results on Thursday, November 6. Analysts widely expect the PSU to stage a largely positive financial performance for the second quarter of the current financial year, with mild growth in net premium income owing to stability in value of new business (VNB) and a robust product mix. Read on to learn about analysts' key expectations from the upcoming LIC earnings report.

LIC Q2 FY26 Results Preview: Profit

According to Zee Business analysts, LIC is estimated to register a standalone net profit of Rs 8,100 crore for the quarter ended September 30, which translates to a year-on-year increase of 6.2 per cent.

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LIC Q2 FY26 Earnings Preview: Top line

The analysts expect the state-run insurer's quarterly standalone net premium income to be at Rs 1,29,600 crore. That means an 8.0 per cent rise over the year-ago period.

LIC Q2 results: Operational performance

LIC's second-quarter new business annualised premium equivalent (APE) is pegged at Rs 16,100 crore, marking a fall of 2.4 per cent, according to Zee Business research. APE is a key metric that determines the insurance business top line by annualising different premium types.

The insurer's value of new business (VNB) margin -- a key measure of profitability -- is estimated to 17 per cent for the quarter ended September 30, versus 17.9 per cent a year ago.

Key things to watch out for

According to the research, LIC is set to witness a rise in non-par insurance plans owing to lower premiums. Analysts will closely track the life insurer's growth outlook and commentary on health insurance acquisitions.

LIC shares vs Nifty50

On Tuesday, LIC shares ended 1.5 per cent lower at Rs 906.4 apiece on BSE, underperforming a Mumbai market that declined half a per cent.

At this level, the LIC stock stands 1.2 per cent higher for the year, underperforming a 7.8 per cent rise in the Nifty50.