Synopsis:
ICICI Lombard reported strong Q1FY26 results with 28.7 percent PAT growth, driven by investment gains, while analysts like Motilal Oswal remain bullish with a target of Rs. 2,400, citing expected recovery in growth and profitability.
An insurance company stock is in focus today after declaring financial results for Q1FY26. Check the article below to know about their performance and future target given by the analyst.
With a market capitalization of Rs. 1,01,036 crores, the shares of ICICI Lombard General Insurance Company Limited were trading at Rs. 2034, up by 1.6 percent from its previous closing price of Rs. 2002.70.
Q1FY26 Results
ICICI Lombard’s total income for the quarter ending June 30, 2025, increased by 13.6 percent year over year to Rs. 6,083.3 crores from Rs. 5,351.9 crores in the same quarter the previous year. Compared to Rs. 7,931 crores in Q1FY25, the gross premiums written increased by 1.5 percent to Rs. 8,052.5 crores in Q1FY26. In addition, net premiums written increased 4.7 percent to Rs. 5,610.5 crores from Rs. 5,360.5 crores during the same period last year.
In Q1FY26, gross direct premium income (GDPI) was Rs. 7735 crores, while in Q1FY25, it was Rs. 7688 crores. It increased slightly by 0.6 percent year over year, while the industry grew by 8.8 percent.
PBT, or profit before tax, climbed 28.4 percent year over year to Rs. 994 crores in Q1FY26 from 774 crores in Q1FY25, as a result of higher to capital gains of Rs. 380 crores(compared to Rs. 284 crores the previous year). Profit After Tax (PAT) increased from Rs. 580 crores in Q1FY25 to Rs. 747 crores, an increase of 28.7 percent.
The Return on Average Equity (ROAE) increased from 19.1 percent to 20.5 percent in the previous year. The solvency ratio remained at 2.70x, which is significantly higher than the legal minimum of 1.50x.
About the company
ICICI Lombard has been the top private general insurance provider in India for more than 20 years. Through a variety of distribution channels, it provides a broad range of products in the areas of liability, engineering, fire, crop, motor, health, and marine insurance. It employs 15,123 people and has 328 branches, along with 1,43,675 Individual Agents (including POS)
Analyst Outlook
Morgan Stanley kept its “equal-weight” rating on ICICI Lombard, aiming for a share price of Rs 1,885. Because of increased investment income from capital gains, the brokerage reported that profit after tax (PAT) exceeded expectations.
With a target price of Rs. 2,400 per share, a 30 percent upside, Motilal Oswal has reaffirmed its “buy” rating on ICICI Lombard. The brokerage projects the combined ratio to improve to 101.2 percent by FY27 and anticipates a recovery in growth in FY26 and consistent profitability improvement. PAT growth is projected to be 23 percent in FY26 and 15 percent in FY27. It raised FY26 earnings estimates by 3 percent, taking into account robust investment gains from Q1 FY26, while maintaining a largely unchanged net earned premium (NEP) estimate.
Written by Akshay Sanghavi
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