LIC Q4 FY2026 Results: Net Profit Jumps 23% to ₹23,420 Crore — Record PAT, ₹10 Dividend & Strong VNB Growth
By Kaushik Brahmakshatriya
Published On 21 May 2026.
LIC Q4 Result FY2026
India’s largest insurer, Life Insurance Corporation of India (LIC), delivered a landmark financial performance for the quarter and full year ended March 31, 2026. Announced on May 21, 2026, the Q4 FY2026 results reflect the corporation’s strongest showing since its listing, driven by premium growth, improved product mix, and superior investment income. Here is a complete breakdown of every key metric investors and policyholders need to know.
Q4 FY2026 Quarterly Profit: 23% YoY Surge
Driven by robust premium growth and higher investment income, LIC reported a 23% rise in quarterly profit to ₹23,420 crore for the three months ended March 31, 2026, compared to ₹19,013 crore in the same quarter of the previous year. This marks one of the strongest quarterly performances the corporation has delivered since its landmark IPO.
The fourth quarter is traditionally the strongest period for life insurance companies, as policy renewals and new business submissions peak before the financial year closes. LIC capitalized on this seasonal advantage while also demonstrating structural improvements in its product portfolio.
Full Year FY2026 Financial Highlights
The Profit After Tax (PAT) for the full year ended March 31, 2026 stood at ₹57,419 crore, registering a year-on-year increase of 19.25% compared to ₹48,151 crore in FY2025.This is a record annual profit figure for the government-owned insurance giant.
Total Premium Income for FY2026 increased by 9.80% to ₹5,35,984 crore, while New Business Premium Income in the Individual segment grew by 8.29% to ₹67,676 crore. Total Group Business Premium Income rose sharply by 16.26% to ₹1,96,609 crore.
Key Financial Data — Q4 & FY2026 Summary Table
| Metric | Q4 FY2026 | Q4 FY2025 | YoY Change |
| Net Profit (PAT) | ₹23,420 Crore | ₹19,013 Crore | +23% |
| Total Full-Year PAT | ₹57,419 Crore | ₹48,151 Crore | +19.25% |
| Total Premium Income (FY26) | ₹5,35,984 Crore | ₹4,88,131 Crore | +9.80% |
| Individual New Business Premium | ₹67,676 Crore | ₹62,494 Crore | +8.29% |
| Group Business Premium | ₹1,96,609 Crore | ₹1,69,116 Crore | +16.26% |
| Dividend Declared | ₹10/share | — | FY2026 Final |
VNB Growth & Margin Expansion: The Real Story
One of the most critical metrics for insurance companies is the Value of New Business (VNB), which measures the long-term profitability of new policies written. LIC’s VNB performance in FY2026 is exceptional.The Value of New Business for FY2026 increased by 41.63% to ₹14,179 crore, compared to ₹10,011 crore in FY2025. The Net VNB margin for the year expanded by 360 basis points to 21.2%, up from 17.6% in the previous year.
This margin expansion signals that LIC is successfully shifting its product mix away from traditional participating (par) products toward higher-margin non-participating (non-par) products. The Individual Non-Par APE increased from ₹10,581 crore in FY2025 to ₹15,214 crore in FY2026, registering growth of 43.78%.
AUM, Solvency & Embedded Value
The Indian Embedded Value (IEV) increased by 1.58% to ₹7,89,185 crore, and the Assets Under Management (AUM) grew by 5.08% to ₹57,29,396 crore.
LIC’s solvency ratio strengthened to 2.35 as of March 31, 2026, up from 2.11 a year earlier, remaining well above the regulatory threshold.
A higher solvency ratio indicates that LIC has ample financial cushion to meet policyholder obligations even under adverse scenarios.
Product Mix & Channel Performance
| Product Category | FY2026 Share (APE Basis) | FY2025 Share |
| Par Products (Individual) | 64.89% | 72.31% |
| Non-Par Products (Individual) | 35.11% | 27.69% |
| Bancassurance + Alternate Channels | 7.51% | 5.59% |
The share of bancassurance and alternate channels to individual new business premium increased to 7.51% for FY2026 from 5.59% for FY2025, reflecting LIC’s push to diversify distribution beyond its traditional agency network.
Dividend Announcement
The Board of Directors has recommended a final dividend of ₹10 per equity share of ₹10 each (equivalent to ₹20 per equity share on a pre-bonus issue basis) for Financial Year 2025–26, subject to approval of shareholders at the 5th Annual General Meeting.
This dividend announcement reinforces LIC’s commitment to rewarding its shareholders, which include millions of individual retail investors who participated in its IPO.
Management Commentary
Shri R. Doraiswamy, CEO & Managing Director of LIC, stated: “Financial Year 2025–26 has been a satisfying year for us, with strong overall growth across every business vertical leading to record performance metrics. We have achieved a Non-Par share on APE basis in our individual business of more than 35% and our VNB margin is more than 21% for the year.”
Persistency Ratios: An Area to Watch
Despite the strong profit performance, persistency ratios faced some pressure. The 13th month persistency ratio slipped to 67.77% from 68.62% a year earlier, while the 61st month persistency ratio declined to 54.13% compared with 58.54% in the prior year.
Persistency ratios measure policy renewal rates — a declining trend can indicate early lapse pressure and needs monitoring in coming quarters.
LIC Market Share — FY2026
In terms of market share measured by First Year Premium Income (FYPI) as per IRDAI, LIC continues to be the undisputed market leader in Indian life insurance with an overall market share of 56.66% for FY2026, compared to 57.05% for FY2025.
YoY Profit Trend — LIC (FY2023 to FY2026)
| Financial Year | Full-Year PAT (₹ Crore) | YoY Growth |
| FY2023 | ₹36,397 Crore | — |
| FY2024 | ₹40,676 Crore | +11.75% |
| FY2025 | ₹48,151 Crore | +18.37% |
| FY2026 | ₹57,419 Crore | +19.25% |
LIC’s profit trajectory shows consistent and accelerating growth over three consecutive years, building confidence in the corporation’s ability to sustain earnings momentum.
FAQ: People Also Ask
Q1. What is LIC’s net profit in Q4 FY2026?
LIC’s net profit for Q4 FY2026 was ₹23,420 crore, reflecting a 23% increase compared to ₹19,013 crore reported in Q4 FY2025.
Q2. What is LIC’s full-year PAT for FY2026?
The full-year Profit After Tax for FY2026 stood at ₹57,419 crore, marking a growth of 19.25% year-on-year.
Q3. Has LIC declared a dividend for FY2026?
Yes. LIC’s Board has recommended a final dividend of ₹10 per equity share (face value ₹10) for FY2026, subject to shareholder approval at the AGM.
Q4. What is LIC’s VNB margin for FY2026?
LIC’s Net VNB (Value of New Business) margin for FY2026 expanded to 21.2%, an increase of 360 basis points over the prior year’s 17.6%.
Q5. What is LIC’s AUM as of March 2026?
LIC’s Assets Under Management stood at ₹57,29,396 crore as of March 31, 2026, reflecting 5.08% year-on-year growth.
Q6. What is LIC’s market share in FY2026?
LIC held an overall market share of 56.66% in Indian life insurance based on First Year Premium Income, according to IRDAI data.
Q7. What is LIC’s solvency ratio in FY2026?
LIC’s solvency ratio strengthened to 2.35 as of March 31, 2026, well above the IRDAI-mandated regulatory minimum.
Disclaimer
This blog does not provide financial, investment, or trading advice. All content is for educational and informational purposes only. Please consult a certified financial advisor before making any investment decisions. The author will not be responsible for any financial losses incurred
