LIC shares jump on Q4 profit, bonus issue in 2026

What moved LIC stock on May 22

Shares of Life Insurance Corporation of India (LIC) rose nearly 5% in early trade on Friday, May 22, 2026, as investors reacted to a strong quarterly performance and revised brokerage estimates. The stock touched a one-month high on the BSE during the session. The move also came alongside market attention on LIC’s first-ever bonus issue since listing.

LIC’s share price rose to an intraday high of ₹839 versus the previous close of ₹800.70, a gain of as much as 4.7%. Another data point in the feed showed LIC closing around ₹834.70, up 4.32% from its previous close (shown as about ₹800.20 in that snapshot). Despite the sharp reaction, the stock was still about 4% lower for 2026 so far, as per the same report.

Trading snapshot: open, high, low, and volume

The day’s trading range highlighted strong participation and follow-through buying after the results. LIC opened at ₹835.00, hit a high of ₹839.00 and a low of ₹826.00 in the cited market snapshot. Reported volume stood at 25,69,528 shares. The stock’s last traded price in that snapshot was ₹834.70.

Another reference point in the supplied text showed LIC at ₹804.00 at 09:00 AM IST, up 0.48% from a previous close of ₹800.55. Taken together, the inputs indicate an active session with fast-moving price discovery around earnings, corporate action news, and brokerage upgrades.

Q4 FY26 results: net profit rises 23% YoY

LIC reported a consolidated net profit of ₹23,467 crore for the fourth quarter of FY26. This represented 23% year-on-year growth compared with ₹19,039 crore in the corresponding quarter last year. The profit rise was cited as a key factor behind the stock’s early-session jump.

The article text also referenced LIC’s December-quarter performance earlier in FY26. In February, LIC reported a 17% year-on-year rise in consolidated net profit for the December quarter to ₹12,930 crore versus ₹11,008 crore a year earlier. Net premium income for that quarter stood at ₹1,26,000 crore, up from ₹1,07,000 crore in the year-ago period.

Board approves 1:1 bonus issue and final dividend

Alongside the FY26 performance, LIC’s board approved a 1:1 bonus share issue on Thursday, May 21. Under a 1:1 bonus, shareholders receive one additional share for every share held. The text described it as LIC’s first bonus issue since listing.

LIC also announced a final dividend of ₹10 per share for FY26. Another report excerpt stated that the bonus shares would be credited within two months of board approval, on or before June 12, 2026, subject to approvals.

How big is the bonus issue

One of the included snippets said LIC proposes to issue 632.49 crore equity shares as part of the bonus issue. This would increase the company’s capital to ₹12,649.99 crore. Another excerpt described the bonus as involving capitalisation of ₹6,325 crore of reserves.

These disclosures helped frame the corporate action as a balance-sheet driven move, rather than a cash outflow event. Market participants often track such actions for potential liquidity impact and changes in free float dynamics, although the supplied text did not quantify those effects.

JM Financial: target price raised to ₹960

Following the earnings announcement, JM Financial said LIC’s diversifying product mix and improving margins provide resilience to growth. It also noted LIC stock had been rangebound as weak markets kept embedded value (EV) below September 2024 levels.

JM Financial added that as macro conditions improve, EV is expected to grow with an improving growth profile. The brokerage raised its FY27E and FY28E value of new business (VNB) estimates by 15% or more, and referenced steady 10-12% growth with an improving margin, cited at 22% by FY28E.

JM Financial raised its target price to ₹960 from ₹888 earlier. It valued LIC at 0.6x Mar’28 EVPS (embedded value per share) of ₹1,647, revised from ₹1,596 earlier. The brokerage maintained a ‘Buy’ rating.

Systematix Equities: target price raised to ₹970

Systematix Equities also raised its target price on LIC to ₹970 from ₹950 earlier, reflecting a positive outlook. It valued the company at 0.6x on its FY28E EV per share of ₹1,607.

Systematix also cited an RoEV (return on embedded value) profile of 12.1% for FY27E and 12.1% for FY28E in its note, as included in the supplied text.

Broader brokerage commentary and older target references

The provided material also contained older brokerage commentary around LIC’s FY26 results cycle. In another excerpt, Motilal Oswal Financial Services maintained a ‘Buy’ call but reduced its target price to ₹1,080. Macquarie maintained an ‘Outperform’ rating with a target price of ₹1,215.

Citi, in that excerpt, retained a ‘Buy’ call with a target price of ₹1,370, indicating an upside potential of 55% from a previous close of ₹885 in that context. The same section referenced LIC trading around ₹927 in the morning on that day and noted a P/E ratio of 11.69. These figures were presented as part of prior market coverage included in the input text.

Key numbers at a glance

Brokerage targets and valuation inputs

Market impact and what investors tracked

The immediate market reaction combined three clear triggers cited in the text: a jump in quarterly profit, a first-ever 1:1 bonus issue since listing, and brokerage upgrades to earnings estimates and target prices. Price action also reflected a focus on embedded value and the outlook for margins and VNB, based on the broker notes referenced.

At the same time, the stock’s year-to-date performance for 2026 was described as still down about 4%, suggesting that the rally was also a catch-up move after a rangebound period. Investors also tracked corporate action timelines, with one excerpt stating the bonus shares would be credited within two months of board approval, on or before June 12, 2026, subject to approvals.

Conclusion

LIC shares climbed to a one-month high after Q4 FY26 consolidated net profit rose to ₹23,467 crore and the board approved a 1:1 bonus issue along with a ₹10 per share final dividend. Brokerages including JM Financial and Systematix Equities raised target prices to ₹960 and ₹970, respectively, anchored to EV-based valuation metrics. The next key checkpoint in the corporate action flow is the completion of required approvals and the bonus share credit timeline referenced as on or before June 12, 2026.