Q3 results impact: LIC soars 8% on higher new business value, margins; Kaynes Tech falls 8% as profit misses estimates

Q3 Results impact on LIC, Kaynes Tech shares

• LIC shares surged 8% after strong Q3 earnings and 17% YoY profit growth.
• Kaynes Tech shares fell nearly 8 percent despite 15 percent YoY profit rise
• Brokerages maintain BUY rating on LIC, citing margin improvement and growth

Did our AI summary help?

The shares of Life Insurance Corporation of India (LIC) jumped in trade on February 6 after the company reported a “very strong” set of earnings for the October-December quarter of the ongoing FY26. Kaynes Tech shares however tumbled.

LIC shares jumped around 8 percent to hit a 11-week high of Rs 905 apiece. Kaynes Tech shares meanwhile plunged nearly 8 percent to Rs 3,337 apiece, extending losses for the second day.

LIC Q3 Results:

LIC on February 5 reported a consolidated net profit of Rs 12,930 crore for Q3 of the financial year 2026, marking a 17 percent YoY rise from the Rs 11,008.65 crore net profit reported in the corresponding quarter of the previous financial year. The insurer's net premium income also rose more than 17 percent YoY to Rs 1,25,988.15 crore during the quarter under review.

The insurer’s solvency ratio rose to 2.19 percent in Q3 FY26 from 2.02 percent in Q3 FY25. Asset quality improved, with gross NPA ratio for policyholders’ fund reducing to 1.31 percent in Q3 FY26, from 1.34 percent in Q2 FY26 and 1.64 percent in Q3 FY25.

LIC said that its assets under management (AUM) stood at Rs 59.17 lakh crore by the end of December last year.

JM Financial said that the company reported “exceptionally strong results”, with individual APE growth of 61 percent which was substantially higher than the reported RWRP growth of 26 percent. “We have appreciated LIC’s business, the results justify our conviction. While we raise FY26/FY27/FY28E APE estimates by 4-5%, we maintain our margin estimates, for now. We maintain BUY on the stock with an unchanged target price of Rs 1,111, valuing the corporation at 0.7x Mar’28 EVPS of Rs 1,596,” the brokerage said.

The target price implies an upside potential of more than 32 percent from the stock’s previous closing price.

Motilal Oswal Financial Services noted that the firm’s management expects premium growth to be in line with the industry, driven by an increase in ticket size and growth in the number of policies with enhanced affordability post GST exemption. GST impact on VNB margin will be offset by a product mix shift, cost optimization, and improvement in persistency.

“We have increased our APE estimates by 7%/5%/5% and VNB margin estimates by 120bp/120bp/50bp for FY26/27/28, considering the strong growth trajectory and increasing non-par contribution witnessed during 9MFY26. Reiterate BUY with a revised TP of Rs 1,100 (premised on 0.6x FY28E EV),” it added.

Emkay Global upgraded the stock to "buy" from "add", citing consistent margin improvement and share price underperformance.

Kaynes Tech Q3 Results:

Kaynes Technology India on February 5 reported a consolidated net profit of Rs 76.64 crore for the October-December quarter of FY26, marking a 15 percent YoY rise from the Rs 66.46 crore net profit reported in the corresponding quarter of the previous financial year.

Sequentially however, net profit fell from the Rs 121.41 crore reported in the second quarter of FY26.

The firm’s revenue from operations meanwhile rose around 22 percent to Rs 804.03 crore during the quarter under review.

ICICI Securities said that while profit grew 15 percent YoY, it missed estimates driven by muted growth and lack of traction in the company's industrial segment

JP Morgan says Kaynes' Q3 profit disappointed due to weaker margins and an unfavourable mix, despite strong year-on-year revenue growth.

Follow all LIVE updates from the stock markets here.