ICICI Lombard General Insurance Company shares are expected to be in focus on Wednesday, July 16, after the company posted strong results for the first quarter of fiscal year 2026 (Q1 FY2026).
The insurer reported a substantial 28.7% year-on-year (YoY) increase in profit after tax (PAT), reaching Rs 747 crore, compared to Rs 580 crore in Q1 FY2025.In terms of Gross Direct Premium Income (GDPI), ICICI Lombard posted modest growth of 0.6%, at Rs 7,735 crore in Q1 FY2026, up from Rs 7,688 crore a year earlier.
This lags the general insurance industrys overall growth of 8.8%.However, excluding the impact of accounting changes, the companys GDPI recorded a more robust growth of 4.8%, compared to the industrys 12.8% rise.Profit before tax (PBT) for Q1 FY2026 grew 28.4% to Rs 994 crore, up from Rs 774 crore in the same period last year.Additionally, ICICI Lombards capital gains rose to Rs 380 crore in Q1 FY2026, from Rs 284 crore in Q1 FY2025, further boosting its overall financial performance.Live EventsThe companys Return on Average Equity (ROAE) improved to 20.5% in Q1 FY2026, up from 19.1% in Q1 FY2025, reflecting more efficient use of shareholder capital.
Its solvency ratio remained strong at 2.70x as of June 30, 2025, compared to 2.69x at the end of March 2025, well above the regulatory minimum of 1.50x.The combined ratio, a key metric of underwriting profitability, stood at 102.9% for Q1 FY2026, slightly higher than 102.3% in Q1 FY2025.On Tuesday, shares of ICICI Lombard closed nearly 1% lower at Rs 2,001.05 on BSE.
: Dolly Khanna bets on this smallcap stock with 1.5% stake purchase in June quarterAfter the Q1 results, heres what brokerages say:Nuvama: Buy | Target price: Rs 2,340Nuvama has reiterated its Buy rating on ICICI Lombard while raising the target price to Rs 2,340 from Rs 2,300.
The brokerage noted that heightened competitive intensity has impacted both the motor and group health segments.
It has also trimmed its FY26EFY28E adjusted PAT (APAT) estimates by 0.7% to 1.2%.
However, Nuvama expects a recovery in motor insurance growth as volumes increase, which could support a rebound in overall performance.Motilal Oswal: Buy | Target price: Rs 2,400Motilal Oswal (MOSL) also maintained its Buy call, revising the target price upwards to Rs 2,400.
While the combined ratio slightly missed estimates, strong investment income supported PAT growth.
MOSL noted early signs of industry recovery in FY26, which should aid ICICI Lombards profitability.
It expects the combined ratio to improve to 101.2% by FY27 and forecasts PAT growth of ~23% in FY26 and 15% in FY27.(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own.
These do not represent the views of TheIndianSubcontinent)