LIC Housing Finance Ltd has reported an 11% year-on-year increase in net profit to ₹1,508.78 crore for the second quarter of FY27, compared with ₹1,353.87 crore in the corresponding quarter last fiscal, supported by higher loan disbursements and growth in interest income.
Revenue from operations, however, remained largely flat at ₹7,175 crore against ₹7,074 crore in Q2FY26.
Net interest income (NII) increased to ₹2,088 crore from ₹2,038 crore, while net interest margin (NIM) stood at 2.58%, marginally lower than 2.62% a year earlier. The margin remained unchanged compared with the preceding June quarter.
Loan disbursements increase 11%
Total loan disbursements rose 11% to ₹18,127 crore during Q2FY27 from ₹16,313 crore in the corresponding quarter of the previous fiscal.
Retail loan disbursements, which constitute the bulk of the company’s lending activity, increased 10% to ₹17,563 crore from ₹15,935 crore.
Project loan disbursements registered stronger growth of 49% to ₹564 crore against ₹378 crore a year earlier, indicating increased activity in the company’s project finance segment.
The growth in overall disbursements reflects continued demand in the housing finance market, although the relatively modest increase in revenue and the marginal compression in year-on-year NIM indicate that growth in lending volumes has yet to translate into a proportionate increase in operating income.
Loan portfolio crosses ₹3.26 lakh crore
LIC Housing Finance’s total loan portfolio expanded 5% year-on-year to ₹3,26,173 crore as of September 30, 2026, compared with ₹3,11,816 crore a year earlier.
The retail loan portfolio grew 4% to ₹3,16,433 crore from ₹3,03,084 crore, while the project loan portfolio increased 12% to ₹9,740 crore from ₹8,732 crore.
Retail housing loans continue to account for the overwhelming share of the company’s portfolio, underlining its focus on individual homebuyers even as project lending expands at a faster pace.
Management sees demand remaining resilient
LIC Housing Finance Ltd, Managing Director and Chief Executive Officer Sandeep Kumar said the housing finance sector had remained resilient during the quarter, supported by stable demand in the retail housing segment.
He said the company’s performance reflected its focus on sustainable growth, customer-centricity and operational efficiency.
The company expects borrower sentiment to remain positive, supported by the underlying strength of the Indian economy, favourable demographics and the government’s continued focus on housing