ICICI Lombard shares rise as brokerages cheer healthy Q1 results

ICICI Lombard stock climbs after solid Q1

Shares of ICICI Lombard rose 2 percent to Rs 2,045 per share on July 16 after the company delivered a healthy performance in the June quarter.

So far this year, the general insurer’s stock has gained 10 percent, outperforming the Nifty 50 benchmark, which has risen 5 percent during the same period.

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Morgan Stanley maintained an "equal-weight" rating on ICICI Lombard with a target price of Rs 1,885 per share. The brokerage noted that profit after tax (PAT) was ahead of expectations due to higher investment income from capital gains.

While it appreciated the company’s focus on profitable growth, it flagged limited upside at a 36-times FY26 price-to-earnings ratio, suggesting weak topline growth, intense competition, and uncertainty over the motor third-party premium hike could emerge as key risks.

Motilal Oswal reiterated its "buy" rating on the stock, with a target price of Rs 2,400 per share. It expects growth to recover in FY26 and profitability to improve steadily, with the combined ratio likely to improve to 101.2 percent by FY27.

PAT is projected to grow around 23 percent in FY26 and 15 percent in FY27. While the brokerage broadly maintained its net earned premium (NEP) estimates for FY26 and FY27, it raised FY26 earnings estimates by 3 percent, factoring in the strong investment gains seen in Q1 FY26.

The company reported a 28.7 percent rise in net profit to Rs 747.08 crore compared to Rs 580.37 crore in the same quarter last year.

Total income for the quarter ended June 30, 2025 rose 13.6 percent to Rs 6,083.3 crore, up from Rs 5,351.9 crore in the corresponding quarter of the previous year.

Gross premiums written grew 1.5 percent to Rs 8,052.5 crore from Rs 7,931 crore in the same quarter last year.

Net premiums written rose 4.7 percent to Rs 5,610.5 crore compared to Rs 5,360.5 crore for the quarter ended June 30, 2025.

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