LIC Portfolio Rejig: Boosts Stake in 73 Firms, Cuts 90 in Q3 FY26
India's largest domestic institutional investor, the Life Insurance Corporation of India (LIC), has executed a significant portfolio rebalancing during the quarter ended December 2025. According to data from primeinfobase.com, LIC increased its stakes in 73 companies while simultaneously reducing its holdings in 90 other firms.
In overall rupee terms, LIC's portfolio value stood at an impressive ₹17.50 lakh crore as of December 31, 2025. This represents a substantial 8.56% increase compared to the previous quarter, highlighting the corporation's active management strategy during this period.
Top Stocks Where LIC Reduced Exposure
The data reveals that among the top percentage decreases in LIC's holdings, metals and mining sector stocks dominated the list, along with several public sector undertakings (PSUs).
Firstsource Solutions experienced the most dramatic reduction, with LIC's shareholding plummeting below 1% from 3.81% in the September quarter. This represents one of the most significant divestments in LIC's portfolio during this period.
In the chemicals sector, UPL Limited saw LIC booking profits amid a 21% gain in the stock during Q3 FY26. LIC's stake in UPL decreased to 5.31% from 6.66% previously. Similarly, Navin Fluorine witnessed a 92 basis points reduction in LIC's holding, dropping to 6.43% from 7.35% in the preceding quarter.
Metal stocks that faced selling pressure from LIC included Hindalco Industries, National Aluminium Company, SAIL, and Vedanta. The stake reductions in these companies ranged between 73 and 126 basis points, indicating a strategic shift away from this sector.
Adani Ports, part of the Adani Group, also appeared on the selling list as LIC's shareholding declined to 6.79% from 7.73% earlier. Additionally, PSU stocks like Bank of Baroda and BPCL experienced an 80 basis points reduction in LIC's holdings during the quarter under review.
Companies That Gained LIC's Confidence
On the acquisition side, LIC demonstrated increased confidence in several companies, with the highest percentage increases observed in NMDC, Coforge, Voltas, and Dr Reddy's Laboratories.
LIC's stake in NMDC and Coforge surged to 4.98% and 4.66%, respectively, from less than 1% previously. This represents a substantial buildup in these positions, indicating strong conviction in their future prospects.
Meanwhile, LIC significantly boosted its holding in Dr Reddy's Laboratories, increasing its stake by 210 basis points to reach 1.79%. This pharmaceutical stock appears to have captured LIC's investment attention during the quarter.
The list of companies that saw increased LIC investment also included other prominent names such as Dabur, Indian Overseas Bank, Cipla, and JSW Energy. These additions suggest LIC's diversified approach across different sectors including consumer goods, banking, pharmaceuticals, and energy.
This comprehensive portfolio rebalancing by India's largest domestic institutional investor reflects strategic positioning ahead of market developments. The simultaneous increase in 73 companies and reduction in 90 others demonstrates LIC's active management approach to optimizing its massive ₹17.50 lakh crore portfolio.
Disclaimer: This analysis is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Bharat Horizon. We advise investors to consult with certified experts before making any investment decisions.
