Synopsis:
ICICI Lombard reported Q2 FY26 net profit up 18% YoY at Rs. 820 crore, with sales rising 12%. GDPI was mixed, while ROAE remained strong at 21.4%. The board declared an interim dividend of Rs. 6.50 per share.
This company is one of the leading and established private sector general insurance companies in India and is now in focus after reporting a net profit rise of 18% and a divided hike to Rs. 6.50.
With market capitalization of Rs. 99,289 cr, the shares of ICICI Lombard General Insurance Company Ltd are currently trading at Rs. 1,996 per share, increasing nearly 8% in today’s market session, making a high of Rs. 2,002.50, from its previous close of Rs. 1,858.65 per share.
ICICI Lombard General Insurance Company Ltd is one of India’s leading private sector general insurers, offering a wide range of products including motor, health, travel, home, and commercial insurance. Known for its strong distribution network, robust underwriting capabilities, and technology-driven solutions, the company combines risk management expertise with customer-focused services to deliver comprehensive insurance coverage across the country.
Q2FY26 Results
ICICI Lombard General Insurance Company Ltd reported a 12% year-on-year increase in sales at Rs. 6,869 crore, up from Rs. 6,147 crore in September 2024. Operating profit rose 11% to Rs. 1,044 crore, compared to Rs. 940 crore a year ago, while net profit grew 18% to Rs. 820 crore. Earnings per share (EPS) increased 17% to Rs. 16.47 from Rs. 14.03 in September 2024.
Gross Direct Premium Income (GDPI) fell 1.9% YoY to Rs. 6,596 crores, underperforming the industry’s 5.9% growth. Excluding crop and mass health segments, GDPI rose modestly by 3.5% against the industry’s 9.8% growth rate. The company reported a combined ratio of 105.1%, reflecting slight pressure on underwriting margins, though Return on Average Equity (ROAE) remained strong at 21.4%.
The board declared an interim dividend of Rs. 6.50 per share, representing a 65% payout over the face value of Rs. 10 per share, higher than Rs. 5.50 in the prior year, with payment expected by November 12, 2025.
Brokerage commentary
Morgan Stanley reiterated an Equal-Weight stance with a target price of Rs. 2,035, which is 2% upside from current levels, citing excellent investment income and upcoming Q3 premium momentum, while warning of rich valuations with a P/E near 47x.
HSBC maintained a Buy rating with a target price of Rs. 2,250, which is 13% upside from current levels, applauding the strong profit after tax and improving growth outlook but trimming EPS estimates due to the elevated combined ratio.
Management commentary
Managing Director and CEO Sanjeev Mantri said the company expects to maintain the growth momentum seen in September 2025, driven by festive demand, moderation in vehicle prices due to the GST cut, and an uptick in motor insurance growth to 6.5%.
He added that retail health remains a strong growth engine in which the company achieved a 4% market share in this segment and plans further expansion through product innovation and retail distribution strengthening.
Written by Manideep Appana
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