ICICI Lombard Rallies To 3-Month High On Q2 Beat; SEBI Analyst Sees 25% Medium-Term Upside

Shares of ICICI Lombard General Insurance Company rose nearly 8% on Wednesday after the company reported an 18% year-on-year rise in net profit to ₹820 crore for the second quarter of FY26, compared with ₹694 crore a year ago. 

The stock hit a three-month high of ₹2,002.20, marking its best session since May 2023, with trading volumes nearly five times the 10-day average.

Earnings Review

The insurer’s Gross Direct Premium Income (GDPI) stood at ₹65.96 billion, down 1.9% year-on-year, while the industry recorded 5.9% growth. Excluding the crop and mass health segments, ICICI Lombard’s GDPI rose 3.5% versus the industry’s 9.8%.

The company also declared an interim dividend of ₹6.50 per share, up from ₹5.50 last year, and reaffirmed its return on equity (ROE) target of 18–20%, reflecting confidence in future growth.

Analyst View 

According to SEBI-registered analyst Finkhoz, ICICI Lombard delivered a strong quarter with profit after tax (PAT) up 18%, operating profit climbing to ₹1,044 crore from ₹940 crore, and revenue increasing 11.7% year-on-year to ₹6,869 crore.

The analyst said loss ratios for motor (65–67%) and retail health (65–70%) remained healthy and credited the company’s results to tight cost control and disciplined underwriting. 

Finkhoz emphasized that the insurer is prioritizing profit quality over top-line growth, which he described as a prudent strategy in the current insurance cycle. The analyst also noted that margins and capital efficiency continue to improve, with better cost management and operational focus supporting long-term profitability.

Technical View

Finkhoz mentioned that post earnings, the stock has seen a strong breakout, rallying nearly 7% in one session and is now at a major resistance level between ₹2,000 to ₹2,100. 

Additionally, the relative strength index (RSI) being at 58 still provides a scope for the stock to rally further before touching the overbought zone. 

The analyst also added that medium-term investors can look to accumulate around ₹1,900–₹1,950 levels with a target of 20–25% gains.

Brokerage View

HSBC maintained a ‘Buy’ rating with a ₹2,250 target, implying more than 21% upside from the last close. The brokerage said profit after tax exceeded expectations and highlighted management’s confidence in premium growth amid favorable industry conditions.

Morgan Stanley, meanwhile, kept an ‘Equal-Weight’ rating with a ₹2,035 target, noting that profits were boosted by investment income while underwriting results remained subdued. 

The firm added that premium growth momentum in motor and health insurance remains strong going into the second half of FY26, though valuations are not cheap.

What Is The Retail Mood?

On Stocktwits, retail sentiment was ‘neutral’ amid ‘normal’ message volume.

ICICI Lombard General Insurance Company’s stock has risen 10% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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