LICI Q1 FY27 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹2,39,866 Cr
verified against source
Revenue YoY
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EBITDA
Pending
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Actual signal trajectory
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What the record says.
LIC delivered a strong Q1 FY27 with PAT growing 22.81% YoY to ₹13,492 crore, driven by robust VNB growth of 61.32% to ₹3,136 crore and a 750bps margin expansion to 22.9%. Individual new business premium rose 14.48% YoY to ₹14,355 crore, while total premium income increased 6.75% to ₹1,27,250 crore. The VNB margin improvement was primarily driven by favorable business mix (non-par savings up 59.24% and protection up 43.59%), contributing +650bps, with assumption changes adding +290bps, partially offset by GST ITC loss impact of -190bps. Management targets VNB margins in mid-20s by year-end and expects AP growth to accelerate in subsequent quarters. Key risks include ULIP recovery dependent on market conditions, bank assurance channel weakness due to geopolitical factors affecting remittances, and agent count decline of 2.73% reflecting quality focus over quantity.
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Guidance to track
- Management confirmed targeting mid-20s VNB margin by year-end, working towards that goal, with margins expected to improve further from Q1's 22.9% base.
- Management expects AP growth to increase over subsequent quarters as focus on new business intensifies through the year, with non-par growth trajectory continuing from Q1.
- The negative 190bps impact from expense assumptions (including GST ITC loss) will primarily affect Q1 and Q2 comparisons versus last year's quarters that had ITC available; impact to reduce thereafter.
- Bank assurance weakness in Q1 due to delayed marketing plans with partners and West Asia conflict impact on remittances; management expects robust recovery and outperformance versus prior year in remaining quarters.
Risks flagged
- ULIP premiums declined YoY due to market volatility affecting customer confidence. Management expects recovery when market situation normalizes but cannot control timing.
- The +5% positive impact from RFR assumptions is not fixed and varies with interest rate movements, creating margin sustainability questions.
- Agent count declined 2.73% YoY as management weeds out non-serious candidates. With 93% of NBP from agency channel, continued decline poses structural risk.
- Solvency ratio will decline to ~2.32 post-dividend from current 2.42, though management considers this adequate for growth plans.
Key quotes
- We are focusing continuously on value-accreting policies in a bigger way where you have seen a good growth in both non-par savings as well as non-par protection and that focus will continue so we expect the margins to improve.
- The impact of RFR is positive which is something which is not something which is fixed as assumption but it is something which is already there to be used by everybody else.
- As the nature of business itself 90% of the surplus goes to the policy holders only 10% gets transferred. So the idea of a directional change in the proportion of business between par and non-par is started only after we went into public organization after the IPO.
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