LIC Housing Finance Q2 FY26 Net Profit Rises 2% to ₹1,353.87 Crore; Loan Book Up 6%

Mumbai, October 30, 2025 – LIC Housing Finance Ltd (NSE: LICHSGFIN, BSE: 500253) announced an increase of 2% year-on-year (YoY) in consolidated net profit to ₹1,353.87 crore for the quarter ended September 30 2025. The company sustained growth in individual home loans and showed a satisfactory improvement in asset quality.

Key Financial Highlights

In the second quarter of financial year 2026, revenue from operations climbed 3% year on year to ₹7,163 crore and profit after tax was up 2% at ₹1,353.87 crore. Net interest income increased 3% to ₹2,038 crore even as the outstanding loan portfolio rose by 6% to ₹3,11,816 crore.

Operational Performance

Total disbursements amounted to ₹16,313 crore during the quarter ended September 2023, compared to ₹16,476 crore in the same quarter a year ago. Specifically, individual home loan disbursements increased by 3% year-on-year to ₹13,490 crore, and project loans fell sharply to ₹378 crore from ₹1,397 crore in the same quarter last year.

The total loan portfolio increased to ₹3.12 lakh crore, growing 6% YoY, with the home loan book growing 5% to ₹2.64 lakh crore.

Asset quality improved with Stage 3 exposure dropping to 2.51% from 3.06% in the prior year, with ECL provisions of ₹5,074 crore covering 53% of Stage 3 assets.

Half-Year (H1 FY26) Highlights

Revenue from operations hit ₹14,396 crore in the first half of FY26, up 5% from last year. Profit after tax climbed 3% to ₹2,713.79 crore. Net interest income also rose to ₹4,104 crore, up 4%. Add in other income, and total revenue touched ₹14,403 crore. All in all, the numbers show steady growth.

In the first half of FY26, total disbursements in Uttar Pradesh hit ₹29,429 crore, just a bit higher than last year’s ₹29,391 crore. Home loans for individuals led the way, climbing 3% to ₹24,737 crore. Project loans, though, dropped sharply, falling from ₹1,918 crore to ₹534 crore compared to last year.

Management Commentary

Tribhuwan Adhikari, MD and CEO, stated that the results indicate continued sector momentum and optimism amid the improving macroeconomic conditions.

“We expect business growth to be positive this year, driven by lower interest rates, improved sentiments, and a conducive policy environment; we are reshaping home finance into a seamless digital experience for India’s next generation home-buyers through partnerships, AI-enabled workflows, and our single-product business model,” he said.

He added that the company’s focus remains on affordable and mid-segment housing, driven by government initiatives such as PMAY 2.0.

Share Performance of LIC Housing Finance Ltd

As of 10:50 AM IST, the share of LIC Housing Finance Ltd is trading at ₹575.80, down 17.65 or 2.97% from its previous close of ₹593.45. The share opened at ₹593 and traded between ₹574.25 and ₹594.35, the high and low, so far. The company has a market cap of 32,643.50 Cr. and a PE ratio of 5.90.

Incorporated in 1989, LIC Housing Finance Ltd is one of India’s largest housing finance companies with a countrywide branch network and an international office in Dubai. The company also sells financial products through its subsidiary, LIC HFL Financial Services Ltd. The company has the highest ratings from CRISIL and CARE for its ability to service debts.

REF: https://nsearchives.nseindia.com/corporate/LICHSGFIN_29102025215159_Press_Release_Q2.pdf

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