LIC Reports Strong YoY Growth in Q4 Earnings, Up 7.7%

India's largest government-owned insurer, Life Insurance Corporation of India (LIC), on Thursday reported a significant rise in its financial performance during the last quarter of the 2024-25 fiscal year. Its net profit rose by a notable 38 per cent year-on-year increase to ₹19,013 crore for the quarter ending March. That is up from the ₹13,763 crore profit seen during the same quarter in the previous year.

Alongside its announcement of earnings, the board of directors of LIC has prescribed a final dividend payment for the financial year ended on March 31, 2025. The prescribed dividend is ₹12 per equity share.The prescribed dividend is subject to the approval of members of the corporation at its upcoming Annual General Meeting (AGM). LIC has appointed July 25, 2025, as the record date for determining eligibility for the dividend distribution.

Business Performance Varies

While profit figures were strong, LIC's core operational income saw a slight contraction. Net premium income, representing revenue from insurance operations, registered a 3 per cent year-on-year decline. It fell to ₹1,47,586 crore in the fourth quarter of FY25, down from ₹1,52,293 crore in the corresponding period of the previous fiscal year. In spite of this decline, LIC holds its top position in India's insurance business. The market share of the company stood at 57.05 per cent . 

Asset Quality Improvement

The insurer also pointed to strengthening in asset quality. Gross Non-Performing Assets (NPAs) declined by 55 basis points over the year to 1.46 percent in Q4 FY25 from 2.01 percent a year ago. NPAs are classified as advances or loans becoming overdue for 90 days, then being graded as bad loans by a financial institution.

Market Reaction

LIC shares are up 7.7% today, trading at ₹938/share, confirming that the market is reacting positively to its Q4FY25 performance.

Since first being listed on the Indian stock exchange in 2022, LIC shares have posted returns of more than 5.42 per cent for investors. But the stock has been volatile, falling by almost 16 per cent in the last one year. Year-to-date, as of 2025, the stock is down 2.83 per cent, but it has gained 8.42 per cent in the previous month.

The high 52-week value for the stock was ₹1,221.50 on August 1, 2024, and the low 52-week value was ₹715.35 on March 3, 2025.At the end of markets LIC's market capitalisation was ₹5,50,938.92 crore.

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here