ICICI Prudential receives ₹3.67 crore tax order from GST authorities, stock down 10% YTD; Buy or sell?

ICICI Prudential Life Insurance announced on Friday, April 18, that it has received an order from the GST Commissioner (Appeals) upholding the tax demand of about ₹3.67 crore. On July 2, 2024, Central Goods and Service Tax (CGST) authorities in Mumbai had passed an order in this regard.

The order denied part of the service tax credit, which the insurer migrated to the GST regime in the 2017-2018 fiscal year, when GST was launched. Subsequently, it had filed an appeal before the Commissioner (Appeals).

ICICI Prudential receives GST notice

In a regulatory filing, ICICI Prudential said, "The company has received an order from the Commissioner of CGST & Central Excise (Appeals), Mumbai, on April 17, upholding the tax demand". The order includes GST liability of over ₹1.83 crore and a penalty of an equal amount. "The company shall file an appeal against the said order before the appropriate authority," said ICICI Prudential.

ICICI Prudential Life Insurance Q3 Results

ICICI Prudential Life Insurance Company Ltd, on Tuesday, April 15, 2025, reported a two-fold rise in its net profit to ₹386 crore for the quarter ended March 31, mainly because of lower expenses. The private sector insurer reported a net profit of ₹174 crore in the fourth quarter of 2023-24.

ICICI Prudential said in a regulatory filing that the insurer's net premium income rose 10.6 per cent to ₹16,369 crore in the March quarter, compared to ₹14,788 crore in the year-ago period. Expenses fell to ₹15,314 crore in the fourth quarter of FY25 from ₹22,352 crore in the year-ago period.

The reduction in total expenses is due to a change in actuarial liability, which includes movement in funds for future appropriation. It has come down to ₹80 crore against ₹7,045 crore in the same quarter a year ago.

ICICI Prudential Share Price Trend

Shares of ICICI Prudential Life Insurance have declined 10 per cent year-to-date (YTD). But have gained six per cent in one month and nearly seven per cent in the last five sessions. On Thursday, shares of ICICI Prudential Life Insurance settled 1.53 per cent higher at ₹595.70 apiece on the BSE.

ICICI Prudential Life Insurance commands a market cap of ₹86,101.30 crore. Domestic brokerage Elara Securities (India) Pvt Ltd has revised the insurer's stock to a ‘buy’ rating with a lower target price (TP) of ₹690. From the current market price (CMP), Elara sees a potential 22 per cent upside on the stock.

"At current levels, ICICI Pru offers attractive value post a 10 per cent correction in the past three months. The stock implies ~5.4 per cent VNB CAGR over the next 10 years, followed by five per cent terminal growth, assuming a 12.5 per cent cost of capital," said the brokerage.

"We see scope for higher-than-market implied VNB growth supported by an improving mix (higher share of protection and non-par) coupled with a better margin profile. We reduce our TP to ₹690 from ₹750 based on 1.6x (from 1.8x December 2026e) FY27E P/EV with an EV per share of ₹424."

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