LIC Housing Finance Stock Surges 3.5% Post Q1FY26 Results; PAT Rises to ₹1,359.92 Cr

Mumbai, August 4, 2025 – LIC Housing Finance Ltd (NSE: LICHSGFIN) jumped 3.54% in early trade on Monday, reaching ₹590.45 after posting strong standalone earnings for Q1FY26. LIC Housing Finance Ltd delivered a stable yet modest financial performance, reflecting its resilience in a cautious lending environment. Revenue from operations stood at ₹7,233 crore, marking a 7% year-on-year increase, supported by steady loan growth. The earnings stability and balance sheet strength reassured investors, contributing to the stock’s positive momentum in early trade.

Stock Performance

As of 12:34 PM IST, the stock was trading at ₹590.45. The Volume Weighted Average Price (VWAP) stood at ₹584.49. The stock remains well below its 52-week high of ₹778.85 but comfortably above the 52-week low of ₹483.70. With an adjusted price-to-earnings (P/E) ratio of 5.70, it continues to trade at relatively attractive valuations. The free float market capitalisation was ₹17,517.51 crore, and the percentage of shares delivered stood at a healthy 45.87%, reflecting strong investor interest.

Q1FY26 Standalone Financial Highlights

In Q1FY26, LIC Housing Finance Ltd delivered a steady financial performance, with revenue from operations rising 7% year-on-year. The company’s net interest income (NII) grew modestly by 4%, while profit before tax (PBT) and net profit (PAT) also saw similar growth of around 4–5%. Despite this positive momentum, the net interest margin slightly declined to 2.68%, compared to 2.76% in the same quarter last year.

Segment-Wise Disbursement Details

The company’s loan book continued to expand, growing 7% to over ₹3 lakh crore, reflecting stable demand and lending activity. However, growth in disbursements remained subdued. While individual home loan disbursements inched up 3%, project loan disbursements saw a sharp drop of 70% year-on-year. Overall, total disbursements increased marginally by 2%, indicating a cautious lending environment in certain segments.

Despite a fall in project loans, the overall disbursements rose due to a strong showing in individual home loans. The Individual Home Loan portfolio grew 7% YoY to ₹2,62,411 crore, while project loans rose 10% to ₹8,950 crore.

Asset Quality & Provisions

Provisions for Expected Credit Loss (ECL) declined to ₹5,051.27 crore in Q1FY26 from ₹5,670.07 crore a year ago, while Stage 3 Exposure at Default improved significantly to 2.62%, down from 3.30% in Q1FY25, indicating better asset quality.

Management Commentary

“We reached a significant milestone, completing 36 years of service. This quarter began on a strong note with a reduction in lending rates and zero processing fees to improve housing credit access. With government schemes like PMAY and increasing urbanisation, we expect sustained growth in affordable housing,” said Tribhuwan Adhikari, MD & CEO, LIC Housing Finance Ltd.

What Does This Mean for Investors?

• Consistent Profit – Given there is a stable rise in PAT and PBT, which reflects steadiness in operational efficacy, even though the lending environment is on a cautious stride.
• Improvement in Asset Quality – As mentioned above, Stage 3 Exposure at Default improved to 2.62% and provisions for credit loss also declined, which implies better health of book loans and repayments.
• Home Loan in Focus  – While loan disbursements for projects reduced significantly, the growth of home loans has remained intact at 7%, which implies there is a continued traction in retail housing finance.

About LIC Housing Finance Ltd

LIC Housing Finance Ltd is one of India’s largest housing finance companies, promoted by LIC in 1989. It operates across India and internationally through a representative office in Dubai. The company enjoys the highest credit ratings from CRISIL and CARE, reflecting robust financial discipline and repayment capability.

REF: https://nsearchives.nseindia.com/corporate/LICHSGFIN_01082025222525_Press_Release_Q1.pdf

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