Should you buy, sell or hold ICICI Lombard shares; here's what keeps brokerages divided

ICICI group general insurer ICICI Lombard General Insurance staged a weaker-than-expected financial performance for the quarter ended March 31. Most brokerages remained upbeat about the insurance company with their latest targets ranging from Rs 1,735 to Rs 2,350, which translates to levels indicating from a downside of nearly 7 per cent to an upside of more than 26 per cent from current levels.

Macquarie, which maintained its 'outperform' rating on the stock after the results announcement, kept its target price at Rs 2,350 per share. According to the brokerage, the insurer was able to close FY26 with good discipline in a tough industry as it prioritised profitability over growth, letting go of market share in select lines of business.

Macquarie's target indicates an upside of 26.4 per cent in the stock from Wednesday's closing price.

Maintaining a 'buy' call on the ICICIGI stock post-results, HSBC mentioned healthy premiums growth in ICICI Lombard's latest results, wherein the insurer's combined ratio improvement was positive though its investment income was impacted.

The brokerage expects the top-line growth momentum in ICICI Lombard General Insurance to continue through FY27. It noted that IFRS implementation could potentially lift its earnings per share (EPS) estimate.

Here's how brokerages view the stock after the earnings announcement:

ICICI Lombard General Insurance Q4 FY26 Results

After market hours on Wednesday, ICICI Lombard General Insurance reported a net profit of Rs 546.5 crore for the final three months of FY26, translating to a year-on-year rise of 7.2 per cent, aided by its retail health segment.

However, slower-than-expected growth in its motor, and property and casualty units impacted the earnings.

Its premium earned grew 11 per cent on a year-on-year basis to Rs 5,790 crore, according to a regulatory filing.

Both numbers were weaker compared to what analysts had expected.

According to Zee Business research, ICICI Lombard General was estimated to register a March-quarter net profit of Rs 710 crore with Rs 6,190 crore in premium earned.

ICICI Lombard dividend

The general insurance firm announced a dividend of Rs 7 per equity share -- a 70 per cent payout given the face value of Rs 10 per equity share.

ICICI Lombard Combined Ratio | Q4 FY26 vs Q4 FY25

The insurer's combined ratio stood at 101.2 per cent versus the 102.5 per cent a year ago.

A reading above 100 per cent reflects an underwriting loss (outflows surpassing policy income). A ratio below 100 per cent indicates an underwriting profit.

Key segment results

The company's retail health portfolio registered growth of 65 per cent during the quarter, owing to GST 2.0 reforms, as its market share expanded to 4.1 per cent from 3.3 per cent a year ago.

However, growth in its motor business stood at 7.6 per cent versus industry growth of 9.2 per cent.