ICICI Lombard share price slumps over 4% after Q4 results 2025. Here’s why

ICICI Lombard share price fell by more than 4% on Wednesday after the company reported disappointing Q4FY25 results. In light of these results, brokerage firms have revised down their target price for the stock. On Tuesday, ICICI Lombard announced a 2% decrease in net profit, amounting to ₹510 crore for the fourth quarter ending March 31, compared to a post-tax net profit of ₹520 crore during the same period last year.

Despite the decline in profit, the company’s total income increased to ₹5,851 crore in this quarter, up from ₹5,165 crore in the comparable period last year. The gross direct premium income rose to ₹6,211 crore, compared to ₹6,073 crore in the same quarter last year, showing a growth of 2.3%.

The board has proposed a final dividend of ₹7 per equity share, which is 70% of the face value of ₹10 each, for the financial year that ended on March 31, 2025, as stated by ICICI Lombard in a regulatory filing.

Here's what brokerages say

Nuvama Institutional Equities

In its report, the brokerage indicated that for Q4FY25, ICICI Lombard registered a modest 10.2% year-on-year growth in gross written premium (GWP) due to a decline in new vehicle sales and the delayed accounting for long-term products. The combined ratios (CoRs) decreased by 23 basis points quarter-on-quarter but rose by 26 basis points year-on-year to reach 102.5%, as the loss ratio climbed by 298 basis points year-on-year and 578 basis points quarter-on-quarter to 71.6%, although this was mitigated by lower expense ratios, which improved by 272 basis points year-on-year and 601 basis points quarter-on-quarter to 30.9%.

The underwriting loss was reported at ₹2.1 billion. A decline in investment income contributed to a 1.9% year-on-year and 29.7% quarter-on-quarter decrease in adjusted profit after tax (APAT), bringing it down to ₹5.1 billion.

“Given a slowdown in new auto sales growth, we are reducing FY26E/27E APAT by 6.8%/6.7%, resulting in a fall in our TP to ₹2,100 (from ₹2,400) i.e. FY26E/27E P/E of 38.3/33.0; retain ‘BUY’,” the brokerage said.

JM Financial

As per the brokerage, ICICI Lombard has shown strong performance in recent quarters, even amidst a challenging operating environment. During the 3Q earnings conference call, management did not provide a forecast for the Combined Operating Ratio (COR), diverging from previous targets of 101.5% for 4Q25 and 102% for FY25; they achieved a COR of 102.5% in 4Q and 102.8% for FY25.

When accounting for catastrophe losses of ₹940 million in the first half and the effect of 1/n guidelines, the company's Combined Ratio was 102.2% for FY25. Additionally, there was a bounce back in growth from the lows recorded in 3Q – where adjusted growth in Gross Direct Premium Income (GDPI) was 4.8% in 3Q, the company reported an 8.0% growth (2.3% as reported) in 4Q. Furthermore, the company took advantage of inward reinsurance, which led to a year-over-year growth of 10.2% in gross written premiums.

The investment income from both the shareholder and policyholder books decreased by 17.3% year-over-year and 26.0% quarter-over-quarter to reach ₹8.3 billion, leading to a profit after tax (PAT) of ₹5.1 billion, reflecting a decline of 1.9% year-over-year and 29.7% quarter-over-quarter, which was a 14.4% shortfall against JMFe expectations.

“We reduce FY26e/FY27e EPS by 3.5%/1.6%, value the company at 32x (against 33x earlier) FY27e EPS of INR 67 (against ₹68 earlier) to reduce our target price to ₹2,150 (from ₹2,222). We maintain BUY,” the brokerage said.

ICICI Lombard share price today

ICICI Lombard share price today opened at ₹1,757.30 apiece on the BSE, the stock touched an intraday high of 1,794.05, and an intraday low of ₹1,745.80.

Anshul Jain, Head of Research at Lakshmishree Investment and Securities, stated that ICICI Lombard share price corrected over 29% in less than 23 weeks, but the strong rally seen during the March series suggests a short-term bottom is in place.

“Investors can consider accumulating around the ₹1,700 zone, while traders should watch for momentum above ₹1,855. In both scenarios, the 50% retracement level of the entire fall, placed at ₹1,955, will be the first major upside target. Overall, the price action indicates improving sentiment and potential for a meaningfulbounce,” said Jain.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.