LICI Q2 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹2,41,524 Cr
verified against source
Revenue YoY
5.14%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
LIC reported H1 FY26 PAT growth of 16.36% to Rs 21,040 crore, driven by VNB margin expansion of 140bps YoY to 17.6% and strong cost control (expense ratio down 146bps to 11.28%). The non-par business mix improved sharply to 36.31% of individual AP from 26.31%, reflecting successful product strategy execution with 30.47% YoY growth in non-par AP. While total premium grew 5.14% YoY, new policy count declined 20.8% to 72.61 lakh due to minimum ticket size increases under new regulations and GST exemption-related buying deferral in September. Bancassurance channel showed exceptional 67.62% growth to Rs 22,410 crore. Management expressed confidence in margin trajectory continuation and expects policy count recovery in H2 with Q3 showing strong traction. Key risk remains GST input tax credit unavailability impacting future margins, though management expects volume growth to offset this. The RBC framework impact remains uncertain pending regulatory discussions.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects margin improvement trajectory to continue into H2 and FY27, noting that margins historically improve Q1 to Q4. Stated confidence in delivering better than current 17.6% VNB margin.
- Management is confident of complete catch-up in policy count by year-end, noting very good traction from October 1st post-GST exemption announcement and strong sales in Q3 so far.
- Non-par share expected to improve further from current 36.31% based on momentum built over 3 years, though no specific target set. Growth expected across all segments (par, non-par, ULIP, annuities) in coming quarters.
- Management explicitly stated focus on topline growth rather than market share. Aim to grow faster than industry, which would naturally improve market position. Not targeting specific mix proportions.
Risks flagged
- Multiple analysts asked for margin impact quantification from loss of ITC on future margins. Management provided qualitative guidance only, stating confidence in growth offsetting impact. This remains an unquantified risk for H2 and FY27.
- Persistency declined across most cohorts (13th month 75.29% vs 77.62% last year; 24th month 71.37% vs 72.24%). Management attributed to high volume of low ticket-size policies, but improvement only visible in 37th and 61st month cohorts. Declining persistency could impact future renewal income and VNB.
- Analyst specifically asked about solvency ratio under RBC framework given LIC's long-duration liabilities. Management responded that numbers are 'dynamic and susceptible to change' pending finalization with regulator. Capital requirement uncertainty remains.
- Overall market share declined to 59.41% from 61.07% YoY, with individual business share falling to 37.21% from 39.79%. Management did not set specific market share targets, focusing only on growth. Continued erosion could signal competitive pressure from private players.
Key quotes
- We are confident that we will be able to accelerate our efforts towards insurance for all by 2047 with such customer friendly initiative.
- This margin has moved from 16.2% to 17.6%...the operating assumptions that includes the impact of GST contributed a negative 0.9%.
- We are certainly not looking at anything on the commission or changing the commission structure right now but we'll be looking at increasing the ticket size and the contribution from the existing business.
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