Shares of ICICI Prudential Life Insurance remained in focus following a 19.82 per cent year-on-year increase in its standalone net profit to ₹390.20 crore in the third quarter this fiscal.
The stock ended 2.16 per cent lower on the BSE at ₹699.25, hitting a high of ₹700.15 in early trade, up 2 per cent from the previous close of ₹684.05.
However, ICICI Prudential Life Insurance has largely received positive reactions from brokerages after a December quarter marked by steady value growth and resilient margins despite the drag from the loss of GST input tax credit, with analysts increasingly focusing on whether improving profitability can now be matched by a stronger top-line recovery.
Jefferies reiterated buy rating with a target price of ₹830, saying the insurer’s value of new business (VNB) of about ₹6 billion in the December quarter was ahead of its expectations. The brokerage attributed this to margins of around 24 per cent, slightly better than it had forecast, combined with a 4 per cent rise in annualised premium equivalent (APE).
Jefferies said the GST impact was largely neutralised through a better product mix, a supportive yield curve and tight cost control. While it flagged that persistency remains weak and could lead to a small negative variance in embedded value, it raised its VNB estimates by 3-4 per cent, and now expects a 16 per cent CAGR in VNB over FY26–28, arguing that steady growth could help the stock re-rate.
Domestic brokerage Motilal Oswal has maintained a buy call at ₹800, emphasising that the company’s profitability in the long-term will be supported by higher volumes driven by GST exemption, increased traction of non-linked products, and improved product-level margins.
CLSA assigned an outperform rating at a target price of ₹790. It said margin pressure from the loss of GST input tax credit was largely offset by a shift toward retail protection, better product-level margins and favourable yield curve movements. CLSA pointed to strong 40 per cent year-on-year growth in retail protection in the December quarter, aided by GST removal, alongside a pick-up in ULIP and non-par sales. While it noted some uncertainty from discussions around potential changes in commission norms, CLSA expects any regulatory tweaks to be pragmatic given the regulator’s focus on improving insurance penetration.
HSBC also stayed constructive, maintaining a buy rating and a target of ₹790. It said the third quarter showed strong margin performance as cost control and an improved product mix fully absorbed the impact of losing input tax credit. HSBC expects a favourable base, robust demand and a pick-up in credit protection products to drive a recovery in overall APE growth, adding that top-line momentum will be the key trigger for the next leg of a re-rating.
Nuvama Insitutional Equities tweaked the target price from ₹770 to ₹790, retaining a buy call.
Nomura, which has a neutral stance with a target of ₹740, acknowledged what it called a “good save on the margins”. The brokerage said the outlook for the March quarter of FY26 looks promising, with management indicating that demand for protection policies should remain strong, even though it still expects full-year FY26 VNB growth to remain in single digits.
Goldman Sachs, however, remains more cautious. It retained its neutral rating but cut its target price to ₹690, noting that APE growth in the third quarter was muted at 4 per cent year-on-year, even though results were broadly in line.
Published on January 14, 2026
