LIC Housing Finance Ltd reported a 9.4% year-on-year increase in net profit to ₹1,488.32 crore for the first quarter of FY27, driven by healthy growth in loan disbursements and an improvement in asset quality, despite a marginal decline in revenue and pressure on net interest margins.
The company’s revenue from operations slipped to ₹7,062.45 crore in the June quarter from ₹7,169.32 crore in the corresponding period last year.
Margins remain under pressure
Net Interest Income (NII) remained largely stable at ₹2,075.52 crore, compared with ₹2,064.71 crore a year earlier. However, the Net Interest Margin (NIM) narrowed to 2.58% from 2.68%, reflecting continued pressure on lending spreads.
Disbursements see strong growth
LIC Housing Finance recorded total loan disbursements of ₹15,014 crore during the quarter, a 14.5% increase over ₹13,116 crore in the year-ago period.
Growth was led by a sharp rise in project financing and steady expansion in retail lending. Individual home loan disbursements rose 8% to ₹12,119 crore from ₹11,247 crore while non-housing individual loans increased 20% to ₹1,975 crore from ₹1,647 crore. Project loan disbursements surged 459% to ₹872 crore, compared with ₹156 crore in the corresponding quarter last year.
Loan book expands
The individual home loan portfolio stood at ₹2.72 lakh crore as of June 30, 2026, up 4% from a year earlier.
The project loan portfolio grew 8% to ₹9,687 crore, while the company’s total outstanding loan portfolio increased 4% to ₹3.22 lakh crore, compared with ₹3.10 lakh crore a year ago.
Asset quality improves
The housing finance major reported a further strengthening of its asset quality. Expected Credit Loss (ECL) provisions declined to ₹4,398.43 crore from ₹5,051.27 crore a year earlier, while Stage 3 Exposure at Default improved to 2.14% as of June 30, 2026, from 2.62% a year ago.
Management remains optimistic
LIC Housing Finance Ltd Managing Director & Chief Executive Officer Tribhuwan Adhikari said the company had recently launched its ‘Har Ghar Ka Humsafar’ campaign to reinforce its commitment to expanding home ownership in India.
He said the company’s first-quarter performance reflected its customer-centric approach, disciplined execution and operational efficiency. Adhikari also noted that LIC Housing Finance had been recognised by the National Housing Bank as the Best Housing Finance Company for the second consecutive year.
Looking ahead, he said the company expects a stable interest rate environment and continued economic growth to provide a favourable backdrop for the housing finance sector despite geopolitical uncertainties.