ICICI Lombard Q1 FY26: PAT up 29%, GDPI lags industry

Key takeaway from the June quarter

ICICI Lombard General Insurance Company Ltd reported a sharp year-on-year rise in profit for Q1 FY26, even as premium growth stayed muted compared to the broader general insurance industry. For the quarter ended June 30, 2025, the insurer posted profit after tax (PAT) of ₹747.08 crore, up 28.7% from ₹580 crore in Q1 FY25. Profit before tax (PBT) rose 28.4% to ₹993.71 crore (also reported as ₹9.94 billion) versus ₹774 crore a year ago. The company cited higher investment income and capital gains as key contributors.

At the same time, gross direct premium income (GDPI) increased only 0.6% year-on-year to ₹7,735 crore in Q1 FY26 from ₹7,688 crore in Q1 FY25. The company compared this with industry GDPI growth of 8.8% over the same period. Excluding the impact of the 1/n accounting norm, the company said its GDPI grew 4.8% in Q1 FY26 versus industry growth of 12.8%.

What the company reported for GDPI and underwriting

In its Q1 FY26 update, ICICI Lombard said the combined ratio was 102.9% compared with 102.3% in Q1 FY25. A combined ratio above 100% indicates underwriting losses, where claims and expenses exceed premium earned. The slight deterioration suggests that underwriting performance remained under pressure, even as profitability improved due to investment-led income.

The company also reported return on average equity (ROAE) of 20.5% in Q1 FY26 versus 19.1% in Q1 FY25. Capital gains were reported at ₹380 crore in Q1 FY26 compared with ₹284 crore in Q1 FY25.

Reuters reported that the profit increase was supported by premium momentum in retail health and motor insurance. The report also said motor insurance premiums rose 13.5% year-on-year, while retail and corporate insurance premiums rose 44% and 10%, respectively, compared with the previous year.

Quarterly financials on a QoQ basis

The company’s quarterly table (QoQ comparison) showed mixed operating trends. Total revenue for the quarter ended Jun 25 was ₹6,083.36 crore versus ₹6,562.82 crore in Mar 26, a change of 3.97% as presented in the dataset. Total operating expense rose to ₹5,400.77 crore from ₹4,974.30 crore. Operating income declined to ₹682.59 crore from ₹1,588.52 crore.

Net income in the same table was ₹747.08 crore versus ₹546.56 crore, while net income before taxes was ₹993.71 crore versus ₹718.20 crore. Diluted normalized EPS was reported at ₹14.49 versus ₹11.63.

Separately, the standalone financial comparison shared in the dataset showed total income of ₹6,083.36 crore in Q1 FY2026 versus ₹5,851.17 crore in the preceding quarter, and net profit of ₹747.08 crore versus ₹509.59 crore. EPS in that table was ₹14.92 versus ₹10.20.

Premium and income mix: what changed

The dataset includes multiple premium metrics that help explain the profit jump. Net premiums written rose to ₹5,610.52 crore in Q1 FY26, up 4.7% from ₹5,360.53 crore in Q1 FY25. Net premium earned was ₹5,136.09 crore, rising 14% from ₹4,503.88 crore a year earlier. Total income was reported at ₹6,083.36 crore for Q1 FY26 compared with ₹5,351.95 crore in the previous year’s first quarter, supported by a rise in investment income.

Motor insurance remained a major contributor, with net premium earned of ₹2,674.90 crore, up 13.5% year-on-year. The Q1 segment disclosures in the dataset also referenced GDPI for motor at ₹2,444 billion for Q1 FY26 and health GDPI of ₹23.81 billion for Q1 FY26, though the text formatting in those lines is inconsistent.

Table: ICICI Lombard Q1 FY26 key numbers (as reported)

Context: FY26 performance and the 1/n accounting basis

Beyond the quarter, the dataset also includes FY2026 and Q4 FY2026 commentary on a 1/n basis. GDPI on a 1/n basis was reported at ₹28,712 crore in FY2026 versus ₹26,833 crore in FY2025, a growth of 7.0%, compared with industry growth of 9.2%. PBT on a 1/n basis was reported at ₹3,659 crore in FY2026 versus ₹3,321 crore in FY2025, and PAT on a 1/n basis at ₹2,772 crore in FY2026 versus ₹2,508 crore in FY2025.

The combined ratio for Q4 FY2026 was reported at 101.2% versus 102.5% in Q4 FY2025. ROAE on a 1/n basis was reported at 17.8% in FY2026 compared with 19.1% in FY2025.

Market and investor lens: what stands out

For investors tracking non-life insurers, the key tension in the Q1 FY26 print is between profit growth and slower headline premium growth versus the industry. The company’s Q1 FY26 GDPI growth of 0.6% trails the industry’s 8.8%, even though profitability improved meaningfully through higher investment income and capital gains.

Underwriting indicators remained tight. The combined ratio moved up to 102.9% from 102.3%, which means underwriting continued to be loss-making on the combined measure. That increases the importance of investment performance in driving earnings during the quarter.

On the market side, the dataset notes that ICICI Lombard closed at ₹2,019.70 as of market close on July 14, 2025 at 3:56 pm.

Recent comparison point: December-quarter weakness

The dataset also references a weaker December-quarter outcome, where ICICI Lombard saw net profit drop by 9% on-year on a one-ninth basis to ₹659 crore, compared with ₹724 crore a year earlier. That quarter was described as being weighed down by higher claims and weaker underwriting performance, even as gross direct premium income rose 13.3% to ₹7,041 crore from ₹6,214 crore, outpacing industry growth of 11.5%.

Against that backdrop, the Q1 FY26 profit growth highlights how quickly earnings can swing based on claims experience and investment gains, even when premium growth is subdued.

Conclusion

ICICI Lombard’s Q1 FY26 results show PAT rising to ₹747.08 crore and PBT to ₹993.71 crore, supported by capital gains of ₹380 crore and higher investment income. But GDPI growth of 0.6% to ₹7,735 crore lagged the industry’s 8.8% growth, and the combined ratio stayed elevated at 102.9%. The next datapoints for investors will be whether premium growth improves relative to the industry and whether the combined ratio trends closer to 100% in subsequent quarters, alongside updates on accounting under the 1/n norm.