LIC faces GST demand while reporting strong Q1 FY26 financials

LIC has received a demand order for Goods & Service Tax (GST), interest, and penalty for FY 2021-22 in Jharkhand State, totaling INR 92,48,03,480 for GST and an equal amount for penalty. This order, received on September 15, 2025, is appealable and stems from an alleged pre-mature availment of Input Tax Credit on the Reverse Charge Mechanism. Despite the demand, LIC states there is no material impact on its financial or operational activities.

Simultaneously, LIC is participating in J.P. Morgan's 10th Annual India Conference on September 22, 2025, to discuss Q1 FY26 financial performance. Key highlights include a 4.77% increase in total premium income to INR 1,19,200 Cr, a 5.42% rise in individual new business premium to INR 12,536 Cr, and a 6.58% growth in individual renewal premium to INR 58,938 Cr for Q1 FY26 compared to Q1 FY25. The company also reported a 5.02% increase in Profit After Tax to INR 10,986 Cr and a 6.47% rise in Assets Under Management to INR 57,05,341 Cr for Q1 FY26.

LIC's embedded value increased by INR 49,532 Crore from March 2024 to March 2025, reflecting a 6.81% growth. The total APE grew by 9.45% to INR 12,652 Cr in Q1 FY26. These positive financial trends indicate LIC's continued strength and strategic focus.