LIC Q2 Preview FY26: APE Likely to Remain Flat, Margins Stable & VNB Seen at Rs 2,844 Crore Amid Modest Growth

The Life Insurance Corporation of India (LIC), the country's largest life insurer, is set to announce its financial results for the July-September quarter (Q2 FY26) on Thursday, November 6, 2025. Market participants are closely watching the performance of the insurance giant, particularly its Annual Premium Equivalent (APE) and Value of New Business (VNB).

LIC Q2 Preview: Analysts Expect Marginal Dip in APE, VNB Down 3%

According to estimates compiled from major brokerages, LIC's APE is projected to fall between Rs 14,840 crore and Rs 16,380 crore, representing a year-on-year (YoY) decline of up to 10%. Meanwhile, VNB, a crucial metric that indicates the present value of future profits from new business is estimated to range from Rs 2,374 crore to Rs 3,018 crore.

LIC Q2 Results Today: Kotak Expects APE at Rs 16,380 Crore

According to Kotak Securities, LIC's Annual Premium Equivalent (APE) is likely to come in at Rs 16,380 crore, reflecting a 0.5% YoY decline but a robust 29% quarter-on-quarter (QoQ) increase.

Kotak noted that the marginal YoY dip is consistent with LIC's subdued performance during the first two months of the quarter, as reported in monthly disclosures. However, sequentially, the insurer is expected to show healthy growth, supported by seasonal demand for insurance products and higher traction in the non-par and group segments.

The brokerage highlighted that while LIC's new business momentum remains slightly slower compared to private sector peers, its broad-based recovery across product categories indicates resilience and potential for improvement in H2 FY26.

VNB Expected at Rs 2,844 Crore, Down 3.3% YoY but Up 46% QoQ

Kotak Securities projects LIC's Value of New Business (VNB), a measure of profitability from new policies sold at Rs 2,844 crore, marking a 3.3% YoY decline but a strong 46% QoQ jump.

The sequential improvement, according to Kotak, is driven by an improved product mix, higher proportion of non-par business, and better distribution efficiency. However, on an annual basis, the dip is attributed to a high base from the previous year and continued pressure on margins due to regulatory factors.

Kotak's analysis suggests that LIC's VNB margin may remain under mild pressure owing to changes in product composition and the GST input tax credit disallowance, which impacts cost efficiency.

Disclaimer

The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.