LIC Housing Finance (LICHSGFIN) Q2 25/26 earnings summary

Executive summary

• Q2FY26 revenue from operations rose 3% YoY to ₹7,163 crore, with PAT up 2% YoY to ₹1,353.87 crore and the outstanding loan portfolio increasing 6% YoY to ₹3,11,816 crore.

• Individual housing loans comprised 85% of the portfolio, growing 5% YoY to ₹2,64,096 crore.

• Net interest income was ₹2,038 crore, with NIM declining to 2.62% from 2.71% YoY.

• Disbursements in the individual home loan segment rose 3% YoY and 24% sequentially, while project loan disbursements remained subdued.

• Financial statements were prepared in compliance with Indian Accounting Standards and SEBI regulations, with no deviations in fund utilization.

Financial highlights

• Standalone revenue from operations for Q2FY26: ₹7,163.32 crore (up from ₹6,853.44 crore YoY); H1FY26: ₹14,396.45 crore.

• Standalone net profit for Q2FY26: ₹1,353.87 crore (up from ₹1,328.89 crore YoY); H1FY26: ₹2,713.79 crore.

• Net interest margin (NIM) for Q2FY26 was 2.62%, down from 2.71% YoY; H1FY26 NIM at 2.65%.

• Stage 3 exposure at default improved to 2.51% from 3.06% YoY; provision coverage ratio increased to 53% from 49% YoY.

• Cost of funds declined to 7.42% from 7.73% YoY; incremental cost of funds dropped to 6.73% from 7.71% YoY.

Outlook and guidance

• Management expects asset quality to improve further, with credit costs guided to remain within 15-50 basis points for the year.

• Disbursement and loan book growth are targeted at 10% for FY26, with hopes to reach double-digit growth by year-end.

• NIM is expected to remain in the 2.6-2.8% range, with current levels seen as the bottom.

• Q3 and Q4 are anticipated to be stronger quarters, with a focus on resolving large legacy loans.

• Weighted average cost of funds decreased to 7.42% in Q2 FY26 from 7.73% in H1 FY25.