LICI Q1 FY27 Guidance vs Delivery (LICI Management Mirror)

Net VNB Margin Expands to 22.9% in Jun'26 Qtr; Full-Year Target Set at Mid-20s Contingent on Risk-Free Rate Movements

Management expects VNB margins to continue improving towards the industry average, targeting the mid-20s by the end of the year, subject to Risk-Free Rate (RFR) movements. Historically, in the Dec'25 Qtr concall, the reported net VNB margin was 18.8% for 9MFY26. In the Mar'26 Qtr results, the net VNB margin was reported at 21.2% for the full year, at which time management guided that future margins were expected to consolidate around current levels (21.2%) with a focus on absolute VNB growth. By the Jun'26 Qtr results, the reported net VNB margin reached 22.9% (expanding 750 bps YoY), driven by a 6.5% positive impact from product mix shifts and a 2.9% positive contribution from operating and economic assumptions, offset by a -1.9% impact from expense assumption changes.