LIC Housing Finance reported a 3% year-on-year decline in net profit to ₹1,384 crore for Q3FY26, compared with ₹1,432 crore in the corresponding quarter last year, impacted by higher provisioning even as core operating metrics remained stable. The company’s revenue from operations rose 2% to ₹7,187 crore from ₹7,057 crore a year ago. Net interest income (NII) increased 5% to ₹2,102 crore, supported by lower borrowing costs and stable loan growth, compared with ₹2,000 crore in Q3FY25.
Net interest margin (NIM) for the quarter stood at 2.69%, marginally lower than 2.70% as of December 31, 2024, but improved sequentially from 2.62% in September 2025, indicating gradual margin recovery.
Disbursements and Loan Portfolio Performance
Total loan disbursements during the quarter increased 4% year-on-year to ₹16,096 crore. Individual home loan disbursements rose 7% to ₹13,094 crore while non-housing individual loans grew 10% to ₹2,304 crore, Project loan disbursements declined sharply to ₹583 crore from ₹983 crore, reflecting a cautious stance on developer financing.
The individual home loan portfolio expanded 4% to ₹26.59 lakh crore, while the project loan portfolio remained largely flat at ₹8,827 crore. Overall, the total outstanding loan book grew 5% to ₹31.43 lakh crore, highlighting steady balance sheet expansion.
Asset Quality and Provisioning
Under the Ind AS Expected Credit Loss (ECL) framework, LIC Housing Finance reported ECL provisions of ₹5,105 crore, with a coverage ratio of 54%, compared with ₹4,974 crore in the previous period. Higher provisioning weighed on bottom-line growth despite improved operating trends.
Tribhuwan Adhikari, MD & CEO, LIC Housing Finance, said the company witnessed sequential improvement in margins and asset quality, aided by lower borrowing costs. He expressed optimism that the forthcoming Union Budget could provide a fresh boost to housing demand, especially in the affordable and mid-income segments. Adhikari added that the January–March quarter is traditionally strong for the housing finance sector, and the company expects to close FY26 with healthy growth momentum.
While profitability remained under pressure due to higher provisioning, LIC Housing Finance’s steady NII growth, improving margins, and rising retail disbursements signal resilience in its core housing finance business amid a cautiously improving macro environment.