Life Insurance Corporation of India Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

As you might know, Life Insurance Corporation of India (NSE:LICI) recently reported its annual numbers. Revenues were ₹8.6t, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at ₹64.69, an impressive 21% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Life Insurance Corporation of India

Taking into account the latest results, the consensus forecast from Life Insurance Corporation of India's 13 analysts is for revenues of ₹9.25t in 2025. This reflects a modest 8.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dip 4.3% to ₹64.08 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹9.41t and earnings per share (EPS) of ₹59.47 in 2025. So the consensus seems to have become somewhat more optimistic on Life Insurance Corporation of India's earnings potential following these results.

The consensus price target was unchanged at ₹1,130, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Life Insurance Corporation of India, with the most bullish analyst valuing it at ₹1,470 and the most bearish at ₹790 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Life Insurance Corporation of India'shistorical trends, as the 8.0% annualised revenue growth to the end of 2025 is roughly in line with the 7.0% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.0% per year. So although Life Insurance Corporation of India is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Life Insurance Corporation of India's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Life Insurance Corporation of India. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Life Insurance Corporation of India analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Life Insurance Corporation of India .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.