It’s not the model. It’s not the team. It’s the unit economics.

Venture capital poured a record $202 billion into AI startups in 2025, capturing half of all global funding. Yet the math remains brutal: 90% of AI companies will fail, a rate significantly higher than the 70% seen in traditional tech startups. According to Alexander Kopylkov, a venture capital investor focused on long-term business fundamentals, this failure rate is not driven by lack of innovation, but by broken unit economics. “Everyone can build a demo,” he notes. “The survivors are the ones who can build a business.”

The Burn Problem

Many AI startups at Series A are burning $2 to $5 for every $1 of new revenue. This burn multiple, a metric popularized by investor David Sacks, has become the defining number VCs scrutinize in 2026.

For context, top-performing SaaS companies operate at burn multiples below 1.5x. The gold standard is 1x or below: spend a dollar, earn a dollar.

Kopylkov breaks it down into first principles: AI startups face a structural cost problem that traditional software companies don’t. “Where a SaaS company spends 15-20% of revenue on infrastructure, AI companies often start at 40-50%,” he explains. “That gap has to close, or the company dies.”

The infrastructure burden isn’t the only culprit. AI startups also face escalating talent costs, with machine learning engineers commanding salaries that dwarf traditional software roles. Add in the constant need to retrain models, maintain data pipelines, and keep pace with rapidly evolving foundation models, and the cost structure becomes punishing.

What the Survivors Look Like

Citing data from multiple VC surveys, Kopylkov notes that companies achieving sub-1.5x burn multiples share three characteristics: disciplined hiring, laser focus on product-market fit before scaling, and AI-enhanced operational efficiency.

The survivors also share something else: enterprise customers. Anthropic, one of the few AI companies demonstrating sustainable economics, generates 70-80% of its revenue from enterprise clients. Its annualized revenue run rate grew from $87 million in early 2024 to $7-9 billion by late 2025, not through hype, but through solving compliance and safety problems that large institutions will pay for.

Kopylkov emphasizes that enterprise focus isn’t just about bigger contracts. “Enterprise customers have longer sales cycles, but they also have lower churn, higher lifetime value, and more predictable revenue,” he says. “That predictability is what lets you plan, hire, and scale without gambling your runway.”

For founders, Kopylkov recommends a simple framework: Before raising your next round, answer three questions. Is your burn multiple under 2x? Do you have 18+ months of runway? Are your gross margins above 50%, or trending there fast?

If the answer to any of these is no, investors in 2026 will notice. The due diligence has gotten sharper, and the patience for aspirational projections has worn thin.

The Consolidation Is Coming

The era of experimentation is ending. According to a TechCrunch survey of 24 enterprise-focused VCs, 2026 is the year enterprises start consolidating AI investments and picking winners.

Andrew Ferguson of Databricks Ventures put it plainly: “Today, enterprises are testing multiple tools for a single-use case. As enterprises see real proof points from AI, they’ll cut out some of the experimentation budget, rationalize overlapping tools, and deploy that savings into the AI technologies that have delivered.”

In his view, this consolidation will accelerate through 2026 and into 2027. The startups that survive won’t be the ones with the best pitch decks. They’ll be the ones with the clearest ROI.

For Kopylkov, this winnowing is inevitable. “When every startup claims to be AI-powered, the label becomes meaningless,” he says. “Buyers are getting smarter. They’re asking harder questions about what’s actually under the hood and whether the product delivers measurable value. The companies that can’t answer those questions convincingly won’t make it to 2027.”

The Opportunity in the Wreckage

Despite the grim statistics, Kopylkov sees opportunity. The 90% failure rate isn’t a reason to avoid AI, it’s a filter.

“The companies that get through are battle-tested,” he says. “They’ve proven they can acquire customers efficiently, retain them, and improve margins over time. That’s exactly what you want to invest in.”

Kopylkov compares this shift to the dot-com era: plenty of destruction, but the survivors like Amazon, Google, and eBay went on to define the next two decades of technology. The pattern is familiar: irrational exuberance, painful correction, and then durable growth built on real fundamentals.

The difference in 2026 is that investors aren’t waiting for the crash to demand fundamentals. They’re demanding them now. The funding environment has shifted from “move fast and figure it out” to “show me the numbers.”

For Kopylkov, this is healthy. “Capital discipline forces founders to think like operators, not just visionaries,” he says. “The best companies emerging from this period will have both.”

“2026 is a fundamentals-first year where capital rewards revenue growth, efficiency, and real AI advantage—and punishes anything that is AI veneer on old ideas.”
— Anders Ranum, Partner, Sapphire Ventures

For founders building AI companies today, the message is clear: the hype got you in the door. The unit economics will determine whether you stay.

President Donald Trump is set to officially unveil a new website called TrumpRx on Thursday evening, which his administration says will allow Americans to purchase prescription drugs at lower costs.

White House press secretary Karoline Leavitt said the announcement is scheduled for 7 p.m. EST and will feature Trump alongside CMS Administrator Dr. Mehmet Oz and National Design Studio Director Joe Gebbia.

“This historic announcement will save millions of Americans money,” Leavitt wrote on X. “You won’t want to miss it!”

CNN reported that at least 16 drug manufacturers have negotiated agreements with the administration to participate in TrumpRx, but specifics on available drugs and pricing remain unclear.

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The White House announced in December that Trump had reached agreements with nine major pharmaceutical companies, including Amgen, Merck, Novartis, Sanofi and Bristol Myers Squibb. 

The move was aimed at lowering prescription drug prices in the U.S. to match the lowest prices paid by other developed nations.

Several drugs listed in the White House announcement included high-cost medications used to treat diabetes, asthma, HIV, hepatitis C, multiple sclerosis and cardiovascular disease.

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Under the agreements, the companies committed to offering steep discounts on a range of medications for chronic and costly conditions, with some drugs sold directly to consumers at reduced prices through TrumpRx.

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For example, Bristol Myers Squibb will reduce the price of its HIV medication, Reyataz, from $1,449 to $217 for patients purchasing directly through TrumpRx, and Merck will reduce the price of its diabetes medication, Januvia, from $330 to $100.

The administration said the deals were expected to save Americans billions of dollars while expanding access to lower-cost medications.

Bitcoin experienced a significant plunge in early Asia trading on Friday, falling as much as 4.8% to US$60,033, reaching its lowest level since October 2024. This selloff effectively erased all gains booked by the token since United States President Donald Trump’s 2024 election victory.

However, the cryptocurrency later pared some of these losses, rising by over 2% to more than $64,400 by 9:12 am in Singapore.

• Current Price and Performance (as of Fri Feb 06 2026 11:25:01 GMT+0700):
  • Spot Price: The Bitcoin price against the US Dollar fluctuates slightly across sources, but the most frequently cited values are around 64,692.00 USD (from the main search result) and 64,601 USD (TradingView). Another source mentions $65,178.14 (Binance) and $64,039.06 (Revolut).

Other cryptocurrencies, such as Solana, also saw sharp declines before rebounding. This market downturn is largely attributed to a brutal series of liquidations that began in October, which significantly sapped market confidence. The selling intensified this week due to the unwinding of leveraged bets and broader market turbulence, with approximately $2.3 billion of leveraged long bets across all cryptocurrencies being liquidated within a 24-hour period.

Rachael Lucas, an analyst at BTC Markets, noted a distinct lack of market appetite to counter this liquidation-driven selloff. She highlighted that “repeated failures to hold support levels have shifted behaviour” and emphasized the critical importance of Bitcoin maintaining the $60,000 support level, warning that a failure to do so could lead to a further decline into the mid-$50,000 range. The market’s volatility also had a substantial impact on major Bitcoin holders, exemplified by Michael Saylor’s Strategy Inc, which reported a net loss of $12.4 billion for the fourth quarter, primarily driven by the mark-to-market decline in its extensive Bitcoin holdings.

The recent intensification of the cryptocurrency selloff is attributed to several specific factors:

• Brutal Series of Liquidations: The market has been on the back foot since a brutal series of liquidations began in October, which significantly sapped market confidence.
• Unwinding of Leveraged Bets: This week, the selling picked up steam due to the unwinding of leveraged bets.
• Broader Market Turbulence: Alongside the unwinding of leveraged bets, broader market turbulence also contributed to the intensified selling this week.
• Lack of Market Appetite: Rachael Lucas, an analyst at BTC Markets, noted a distinct lack of market appetite to step in front of this move, particularly given its liquidation-driven nature.
• Repeated Failures to Hold Support Levels: Lucas also highlighted that “repeated failures to hold support levels have shifted behaviour,” impacting market sentiment and trading actions.

The financial metric that quantifies this activity is:

• Approximately $2.3 billion of leveraged long bets across all cryptocurrencies were liquidated within a 24-hour period.

Market analysts suggest that the initial drop in Bitcoin’s value may have been triggered by broader concerns over tightening monetary policies and regulatory scrutiny in key markets. Despite the rebound, volatility remains high, with traders closely monitoring developments in global financial markets. Additionally, other major cryptocurrencies, including Ethereum and Binance Coin, also saw fluctuations, reflecting a broader trend of uncertainty across the digital asset space. Investors are advised to exercise caution as the market continues to respond to external economic pressures and evolving sentimen

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Alphabet executives struck a confident tone on Wednesday’s post-earnings call, signaling that Google’s heavy investments in artificial intelligence are now translating into real revenue growth across the business.

The call was the first since Google released its Gemini 3 model, which has boosted user engagement and helped the company regain momentum in the intensifying AI race.

While executives did not name OpenAI directly, the message to investors was clear: Google’s AI push is no longer just about experimentation – it is delivering returns across search, cloud and enterprise products.

That confidence is underpinning Alphabet’s willingness to dramatically increase spending. Executives said the company is considering capital expenditures of between $175 billion and $185 billion in 2026 to expand AI computing capacity, a forecast that initially rattled investors.

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“Overall, we’re seeing our AI investments and infrastructure drive revenue and growth across the board,” CEO Sundar Pichai said.

The scale of that growth is now visible across the company. Alphabet reported more than $400 billion in annual revenue for the first time, underscoring the strength of its core businesses even as it pours money into AI infrastructure.

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Google’s Gemini app surpassed 750 million monthly active users by the end of the October through December quarter, up from 650 million in the prior period. While it still trails OpenAI’s ChatGPT – which its CEO said has more than 800 million weekly users – Pichai said engagement has risen sharply since the Gemini 3 launch.

Gemini 3 is now embedded into Google’s search experience and powers its enterprise AI offerings, which have reached 8 million paying licenses, according to the company.

Investor nerves over the capex surge eased as results came in. Google Cloud revenue jumped 48% in the quarter, reinforcing Wall Street’s view that Alphabet’s AI investments are driving tangible growth rather than speculative spending.

The stock initially fell as much as 6% in after-hours trading before stabilizing, reflecting a broader message from investors: massive AI spending will be tolerated only if it produces clear financial returns.

Alphabet’s financial strength gives it an edge in that environment. With a deep cash position and multiple profit engines – from search and YouTube to cloud services – the company is better positioned than many rivals to sustain the enormous costs of the AI arms race.

Since early last year, Alphabet has gone from perceived laggard to leader among the “Magnificent Seven” tech giants, now rivaled only by Nvidia and Apple in market value. By contrast, growing investor unease around OpenAI’s costly expansion has highlighted the appeal of Alphabet’s scale, profitability and balance-sheet firepower.

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“If you are software and you are connected to OpenAI, you’re doubly not intriguing to people,” said Eric Clark, portfolio manager of the LOGO ETF. “Right now, Google has the hot hand.”

Roger Craig, the San Francisco 49ers’ versatile running back who became the first player in NFL history to rush and receive for 1,000 yards in a single season, has been elected to the Pro Football Hall of Fame’s Class of 2026.

The former 49ers star, a three-time Super Bowl champion and four-time Pro Bowler, earned induction through the seniors committee after years of advocacy from fans and former teammates. Craig’s selection caps a remarkable career that redefined the running back position and helped launch San Francisco’s dynasty of the 1980s.

Craig’s historic 1,000-1,000 season changed the game

Craig made history in 1985, the first year of Bill Walsh’s West Coast offense, when he rushed for 1,050 yards and added 1,016 receiving yards — a feat unmatched until Marshall Faulk in 1999 and Christian McCaffrey more recently. That dual-threat production, totaling 2,066 yards from scrimmage, showcased Craig’s unique skill set as both a power runner and reliable receiving option out of the backfield.

Over eight seasons in San Francisco (1983-1990), Craig amassed 6,535 rushing yards and 46 rushing touchdowns, plus 4,106 receiving yards and 15 receiving scores. His 1988 campaign — 1,502 rushing yards and 534 receiving yards — earned first-team All-Pro honors and cemented his status as one of the era’s elite backs.

Craig finished his 11-year career with the Los Angeles Raiders and Minnesota Vikings, retiring with 8,189 rushing yards, 4,911 receiving yards, 73 total touchdowns and membership on the NFL’s All-Decade Team of the 1980s.

Three Super Bowl rings anchor championship pedigree

Craig’s postseason résumé sparkles brightest. He played in 18 playoff games across 11 seasons, rushing for 841 yards and seven touchdowns while catching 51 passes for 606 yards and two scores. As a rookie in 1983, he scored the first touchdown of Super Bowl XVI in a 26-21 win over Miami. He added scoring runs in Super Bowls XIX and XXIII, victories over Miami and Cincinnati that completed San Francisco’s three titles in six seasons.

“From fullback to feature back, Roger did it all,” said former 49ers teammate Joe Montana. “He blocked for us, ran between the tackles, caught passes out of the backfield. Nobody impacted winning like Roger Craig.”​

Drafted 49th overall in 1983 — making him the first No. 49 pick enshrined — Craig thrived under Walsh’s innovative scheme that demanded multifaceted backs ahead of their time.​

Long road to Canton highlights Hall’s seniors process

Craig’s induction required navigating the Hall of Fame’s seniors committee, designed to recognize overlooked contributors from the pre-2000 era. He reached finalist status alongside Ken Anderson, L.C. Greenwood, Bill Belichick and Robert Kraft, but only Craig secured the necessary 80% threshold from the 50-member selection committee.

Each voter could select up to three finalists, creating intense competition. Reports indicated Belichick fell just short at 39 votes, leaving room for Craig’s election as the lone seniors inductee. “This was one of the most debated classes in years,” said committee chair Rick Berman. “Roger’s unique impact separated him.”​

49ers fans had long championed Craig’s candidacy, frustrated by annual snubs despite his statistical dominance and championship pedigree. His 2026 election joins modern-era inductees Drew Brees, Larry Fitzgerald, Adam Vinatieri and Luke Kuechly in a star-studded class announced ahead of Super Bowl LX.​

Redefining the running back position

Craig pioneered the modern “third-down back” archetype, excelling as runner, receiver and pass protector. His 566 career receptions ranked among the most for running backs when he retired, and his versatility influenced coaches like Walsh, Mike Holmgren and Andy Reid.

Only Hall of Famers like Faulk have matched his 1,000-1,000 season while winning Super Bowls. Craig’s blocking in San Francisco’s power sweep — often overlooked statistically — sprung Montana, Jerry Rice and John Taylor for big gains. “Roger was our engine,” Walsh once said. “Without him, none of it happens.”​

Post-career, Craig transitioned to broadcasting and community work in the Bay Area, mentoring youth and supporting 49ers legends events. At 64, he becomes the 49ers’ 16th Hall of Famer, joining Montana, Walsh, Rice, Ronnie Lott and others from that dynasty.​

49ers dynasty cornerstone finally gets gold jacket

San Francisco’s 1980s run — three Super Bowls, four NFC titles — rested on Craig’s consistency. He started as fullback behind Wendell Tyler, transitioned to feature back and finished as a trusted veteran. His 214-yard playoff outburst against the Giants in 1985 remains a franchise postseason record.​

Class of 2026 ceremonies arrive August 2026 in Canton, where Craig joins an elite fraternity. “This is for every 49er fan who believed,” Craig posted on social media. “From the Bay to Canton — Faithful forever.”​

Craig’s statistical legacy by the numbers

Craig’s per-season averages — 746 rushing yards, 446 receiving — sustained across 148 games underscore his durability. No other back matched his receiving volume while maintaining 4.1 yards per carry.​

Modern backs cite Craig as influence

Christian McCaffrey echoed Craig’s dual-threat blueprint, while Alvin Kamara and Austin Ekeler credit his receiving innovations. “Roger invented what we do,” McCaffrey said post-2025 1,000-1,000 season. “Hall of Fame overdue.”​

49ers owner Jed York called Craig “the heart of our dynasty. His election validates everything Faithful fans knew.” Current coach Kyle Shanahan, whose father George contributed to Walsh’s staff, praised Craig’s “revolutionary impact.”​

Hall process drama adds intrigue

Craig’s path highlighted tensions in the Hall’s evolving seniors system. Voters faced tough choices pitting Belichick’s dynasty against Craig’s innovations, Anderson’s MVP case and Greenwood’s Steel Curtain role. Belichick’s near-miss — reportedly 39 votes — freed the final spot, underscoring Craig’s broad appeal.​

The maximum-three-seniors cap forced compromises, but Craig’s unanimous support among 49ers alumni proved decisive. “Finally,” tweeted Hall of Famer Steve Young. “Roger Craig belongs in Canton.”​

Craig’s gold jacket cements his legacy as pioneer, champion and 49ers icon — a fitting tribute to the back who ran, caught and blocked his way into immortality.

Luka Dončić, the NBA’s leading scorer, limped off the court late in the first half of the Los Angeles Lakers’ matchup against the Philadelphia 76ers on Thursday night and was ruled out for the remainder of the game with left leg soreness.

The superstar guard played just 16 minutes, scoring 10 points on 3-for-10 shooting to go with four rebounds, two assists and a frustrating five turnovers before clutching the back of his left leg and heading to the locker room with 3:03 left in the second quarter. Dončić did not return after halftime, with Rui Hachimura stepping into the starting lineup alongside LeBron James as the Lakers trailed by double digits.

Dončić’s troubling limp sparks hamstring fears

Witnesses described Dončić visibly grimacing and kicking the scorer’s table in frustration as he exited, later appearing distraught in the tunnel on Spectrum SportsNet’s broadcast. The Lakers initially listed the issue as “left leg soreness,” but a source told ESPN that Dončić is scheduled for an MRI on his left hamstring Friday to assess the severity.

This marks the latest blow to a Lakers season plagued by injuries to their star trio. Dončić has already missed eight games with various leg ailments, while LeBron James sat out the first 14 contests with sciatica and Austin Reaves just returned Tuesday from a 19-game absence due to a left calf strain. Thursday marked only the 10th game this season with James, Dončić and Reaves all available together.

The timing could not be worse for Los Angeles, sitting at 30-19 and clinging to sixth place in a brutal Western Conference where every game impacts playoff seeding. With four games remaining before next weekend’s All-Star break—including a marquee home date against the Golden State Warriors on Saturday—the Lakers face a critical stretch without their 33.4 points-per-game leader.

Lakers’ nightmare first half without their engine

Dončić’s early exit compounded a dismal opening for Los Angeles, which fell behind by as many as 11 points in the first quarter against a 76ers team missing Joel Embiid but surging behind Tyrese Maxey and Quentin Grimes. Through 16 minutes, Dončić struggled with five turnovers—a season high in a half—highlighting uncharacteristic sloppiness before the injury sidelined him.

In his absence, James shouldered primary playmaking duties, while Reaves—fresh off his calf recovery—joined Hachimura and Jake LaRavia in elevated roles. Marcus Smart remained sidelined with a lumbar strain, further thinning the Lakers’ bench depth. Coach JJ Redick turned to secondary creators like LaRavia and Smart’s replacement to stabilize the offense, but Philadelphia’s perimeter defense exploited the Lakers’ shorthanded attack.

Dončić’s seamless transition powers Lakers’ rise

Since arriving in a blockbuster trade last summer, Dončić has transformed the Lakers into legitimate contenders, leading the league in scoring (33.4 ppg), assists (8.7 apg) and rebounds (7.9 rpg) for a franchise chasing its first title since 2020. His chemistry with James—forged through mutual respect and on-court synergy—has been a revelation, with James recently praising Dončić’s basketball IQ and competitive fire.

The duo’s partnership peaked during a January surge that vaulted Los Angeles into playoff position, bolstered by Redick’s acquisition of sharpshooter Luke Kennard at the trade deadline. Dončić’s absence exposes the Lakers’ heavy reliance on his 40-plus minutes of usage, a dynamic that propelled them past Oklahoma City and Denver but leaves them vulnerable to targeted defenses like Philadelphia’s.​

Injury-plagued season tests Lakers’ depth

Los Angeles entered Thursday healthier than at any point this year, with Reaves’ Tuesday return marking the first full-strength lineup in months. James’ sciatica recovery and Dončić’s prior durability had fueled optimism for a pre-All-Star push, but the hamstring scare reignites concerns about load management and playoff readiness.

Team medical staff will prioritize caution ahead of the All-Star break, potentially sitting Dončić out of Phoenix if imaging reveals even minor damage. “We’ve been banged up all year,” James said postgame. “Luka carries us every night. We’ll rally around him like he does for us.” Redick echoed that sentiment, emphasizing Hachimura’s versatility and Reaves’ emergence as key factors in any extended absence.

76ers seize momentum in injury-riddled Eastern clash

Philadelphia capitalized immediately, extending the lead to 15 by halftime behind Maxey’s 22 first-half points and Grimes’ opportunistic defense. Without Embiid, the Sixers leaned on VJ Edgecombe’s bench spark and Kelly Oubre Jr.’s two-way play, exposing Lakers’ interior weaknesses absent Dončić’s gravity.

The matchup pitted two injury-decimated contenders, with Philadelphia holding seventh in the East at 13-9 despite Embiid’s inconsistent availability. Maxey’s recent explosion—coupled with Edgecombe’s rookie flashes—has kept the Sixers afloat, making Thursday’s win a statement in their own seeding battle.​

What an MRI means for Dončić’s outlook

Hamstring strains represent a nightmare for high-usage guards like Dončić, whose herky-jerky style and 35-plus minutes per game accelerate recovery timelines. Mild strains typically sideline players 1-2 weeks; moderate tears require 4-6 weeks. Given Dončić’s history—eight prior leg absences—the Lakers will err conservative, especially with the All-Star break offering forced rest.

Friday’s MRI will clarify severity, but sources indicate optimism for a short-term absence barring structural damage. Dončić’s track record of rapid returns bodes well, though Redick faces tough rotations against Golden State, where Stephen Curry awaits.

Lakers’ contingency plans lean on James-Reaves core

Without Dončić, expect James (averaging 28.4 ppg) to eclipse 40 minutes, with Reaves handling point-of-attack creation post-calf scare. Hachimura’s midrange game and LaRavia’s hustle provide balance, while Kennard’s deadline addition offers spacing absent Dončić’s pick-and-roll mastery.

Redick’s adjustments will test the coaching staff’s adaptability, a strength during James’ early absences. “We’ve prepared for every scenario,” Redick said pregame. “Luka’s our heartbeat, but this group’s deeper than people think.” Saturday’s Warriors tilt—potentially without Dončić—looms as the ultimate referendum on those contingency plans.

Fan frenzy and national ripple effects

Social media erupted post-exit, with #PrayForLuka trending amid Lakers fans’ injury fatigue. National pundits framed the scare as a Western Conference pivot, with Denver and Oklahoma City lurking should Los Angeles stumble. Dončić’s visible anguish—pounding the table, tunnel meltdown—underscored his passion, endearing him further to a fanbase starved for sustained health.

As imaging looms Friday, the Lakers hold collective breath. Dončić’s seamless integration has redefined their ceiling; his potential absence recalibrates expectations heading into the marathon’s final turn. For now, James carries the load, Reaves steps up and Purple & Gold faithful brace for answers.

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Shares of state-run Life Insurance Corporation of India (LIC) jumped 4% to Rs 874.95 in Friday’s session, supported by a 17% rise in Q3FY26 profit and a favourable brokerage note from Bernstein, which maintained a Market-Perform rating and set a target price of Rs 940.

The insurer reported a 17% year-on-year (YoY) rise in consolidated net profit at Rs 12,930 crore for the December quarter, compared with Rs 11,008 crore in the year-ago period.

Net premium income stood at Rs 1.26 lakh crore in Q3FY26, up 17% from Rs 1.07 lakh crore in the corresponding period last year. On a sequential basis, profit after tax rose 28% from Rs 10,098 crore reported in Q2FY26, even as net premium income declined marginally by 0.7% quarter-on-quarter.

During the nine months ended December 31, 2025, LIC sold 1,16,63,856 policies in the individual segment, slightly lower than 1,17,10,505 policies sold in the same period last fiscal year, reflecting a decline of 0.40%.

On an Annualised Premium Equivalent (APE) basis, total premium for 9MFY26 stood at Rs 44,007 crore. Of this, Individual Business contributed 62.61% or Rs 27,552 crore, while Group Business accounted for 37.39% or Rs 16,455 crore.

Within Individual Business, Par products made up 63.54% of APE at Rs 17,507 crore, while Non-Par products accounted for 36.46% or Rs 10,045 crore. Individual Non-Par APE increased to Rs 10,045 crore for the nine months ended December 31, 2025, compared with Rs 6,813 crore in the year-ago period, registering a growth of 47.44%.
The Value of New Business (VNB) for the nine-month period rose to Rs 8,288 crore from Rs 6,477 crore a year earlier, marking a growth of 27.96%. Net VNB margin expanded by 170 basis points to 18.8%, compared with 17.1% in the year-ago period.LIC’s solvency ratio improved to 2.19 as on December 31, 2025, from 2.02 a year earlier. Assets under management (AUM) increased to Rs 59,16,680 crore as of December 31, 2025, compared with Rs 54,77,651 crore on December 31, 2024, reflecting a rise of 8.01% YoY.

The overall expense ratio for the nine months ended December 31, 2025 declined by 132 basis points to 11.65%, compared with 12.97% in the corresponding period last year.

Brokerage view
Bernstein maintained a neutral stance on LIC, assigning a Market-Perform rating with a target price of Rs 940.

The brokerage said LIC delivered a strong topline performance in Q3FY26 despite ongoing GST-related pressures, while margins improved on the back of a healthier business mix and favourable yield curve movements.

It noted that new business margins rose to around 21%, aided by a better product mix and yield gains, with the GST impact largely offset through tight cost discipline.

On the strategic front, management indicated that the process for the government’s stake sale is likely to commence soon. Bernstein also expects greater clarity on LIC’s dividend policy following the transition to IFRS accounting standards, a key monitorable for investors.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)