Synopsis: LIC Housing Finance Limited reported steady Q4FY26 earnings growth with net profit rising nearly 9 percent year-on-year despite a marginal decline in interest income. Lower finance costs, improved asset quality and reduced impairment provisions supported profitability during the quarter. The company also announced a final dividend of Rs. 10 per share for FY26.
LIC Housing Finance has a total market capitalization of Rs. 31,293.08 crore, according to data on the NSE. LIC Housing Finance shares were trading at Rs. 569.30 apiece on the National Stock Exchange, down by 2.79 percent; the stock has declined around 2.73 percent over the last five sessions, while it has gone up about 7.52 percent in the 30 days. Over a six-month period, the stock has given a return of 0.28 percent, whereas on a year-on-year basis it has decreased nearly 7.66 percent, reflecting poor overall performance. The stock’s 52-week high was Rs. 646.50 and 52-week low was Rs. 458.90.
LIC Housing Finance Limited reported consolidated financial results for the quarter and financial year ended March 31, 2026. The company posted revenue from operations of Rs. 7,211.92 crore in Q4FY26 compared to Rs. 7,303.33 crore in Q4FY25, reflecting a marginal decline of around 1.3 percent year-on-year. However, sequentially, revenue improved slightly from Rs. 7,205.84 crore reported in Q3FY26.
Interest income, which remains the company’s largest revenue contributor, stood at Rs. 7,018.18 crore in Q4FY26 compared to Rs. 7,124.49 crore in Q4FY25. The slight decline in interest income indicates moderation in lending yields and housing finance spreads during the quarter. However, fee and commission income more than doubled to Rs. 45.95 crore compared to Rs. 20.21 crore in the corresponding quarter last year, supporting overall revenue stability.
On the profitability front, the company reported net profit after tax attributable to owners of Rs. 1,492.54 crore in Q4FY26 compared to Rs. 1,373.39 crore in Q4FY25, reflecting growth of around 8.7 percent year-on-year. Sequentially, profit also improved from Rs. 1,398.02 crore reported in Q3FY26.
Profit before tax stood at Rs. 1,933.47 crore in Q4FY26 compared to Rs. 1,780.06 crore in Q4FY25, reflecting growth of around 8.6 percent year-on-year. The improvement in profitability was mainly driven by controlled employee costs, lower depreciation expenses and stable asset quality performance.
The company also maintained stable credit quality despite higher lending exposure. Net loss on derecognition of financial instruments stood at Rs. 9.75 crore compared to Rs. 4.46 crore in the previous year quarter, while impairment on financial instruments declined significantly to Rs. 74.12 crore from Rs. 102.90 crore reported in Q4FY25. Lower impairment provisions generally indicate improved asset quality and better loan recovery performance.
Finance costs, which form the largest expense component for housing finance companies, declined marginally to Rs. 4,786.36 crore compared to Rs. 4,951.12 crore in Q4FY25. Lower borrowing costs supported margins and profitability during the quarter. Total expenses declined to Rs. 5,280.70 crore in Q4FY26 compared to Rs. 5,522.27 crore in Q4FY25, reflecting a decline of around 4.4 percent year-on-year. Since expenses declined while profitability improved, operating leverage strengthened during the quarter.
For the full financial year FY26, LIC Housing Finance reported revenue from operations of Rs. 28,837.11 crore compared to Rs. 28,097.16 crore in FY25, reflecting growth of around 2.6 percent year-on-year. Net profit attributable to owners stood at Rs. 5,603.67 crore in FY26 compared to Rs. 5,442.23 crore in FY25, registering growth of around 3 percent year-on-year.
Profit before tax for FY26 stood at Rs. 7,103.47 crore compared to Rs. 6,878.86 crore in FY25, while earnings per share (EPS) improved to Rs. 101.87 compared to Rs. 98.95 in the previous year. The Board of Directors recommended a final dividend of Rs. 10 per equity share having a face value of Rs. 2 each for FY26, representing a payout of 500 percent, subject to shareholder approval.
LIC Housing Finance Limited is one of India’s leading housing finance companies and primarily provides loans for purchase and construction of residential properties. The company also offers project finance to developers, loans against property (LAP), lease rental discounting (LRD) and financing for commercial real estate assets.
India’s housing finance sector continues benefiting from rising urbanization, increasing housing demand, government housing initiatives and improving credit penetration. However, the sector remains sensitive to interest rate movements, liquidity conditions and asset quality risks.
Overall, LIC Housing Finance reported stable Q4FY26 profitability supported by lower finance costs, improved operational efficiency and stable asset quality. Going forward, loan growth, interest rate movements, credit quality and housing demand trends will remain key factors influencing the company’s future performance.
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