LIC Housing Finance Limited (LIC HFL), a flagship subsidiary of Life Insurance Corporation of India (LIC), has announced its first-quarter results for FY26 on 1st August 2025.
The company posted robust yet steady financials, demonstrating its resilience amid market fluctuations and sustained demand in the housing finance sector. With profit after tax (PAT) rising 4.41% year-on-year and revenue climbing 6.67%, LIC Housing Finance continues to solidify its market leadership in India’s mortgage and housing finance space.
The housing finance industry has seen moderate growth in recent quarters due to stable interest rates, government push for affordable housing, and continued urbanization trends. LIC Housing Finance, leveraging its strong brand trust, is well-positioned to capture this growth.
LIC Housing Finance Q1 FY26: Consolidated Financial Performance
The company’s consolidated figures give a clear picture of its overall financial health, including subsidiaries and associate contributions.
| Particulars | Q1 FY26 (30-06-2025) | Q1 FY25 (30-06-2024) |
|---|---|---|
| Revenue from Operations | ₹7,250.16 Cr | ₹6,796.85 Cr |
| Profit Before Tax (PBT) | ₹6,775.23 Cr | ₹6,405.02 Cr |
| Profit After Tax (PAT) | ₹1,363.89 Cr | ₹1,306.30 Cr |
Analysis:
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Revenue Growth: 6.67% YoY ↑
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PAT Growth: 4.41% YoY ↑
The steady revenue growth reflects increased interest income from loan disbursements, while PAT growth, though moderate, underscores stable asset quality and effective cost management.
LIC Housing Finance Q1 FY26: Standalone Financial Performance
Standalone numbers depict core business performance, excluding contributions from subsidiaries.
| Particulars | Q1 FY26 (30-06-2025) | Q1 FY25 (30-06-2024) |
|---|---|---|
| Revenue from Operations | ₹7,233.13 Cr | ₹6,783.67 Cr |
| Profit Before Tax (PBT) | ₹6,770.33 Cr | ₹6,400.10 Cr |
| Profit After Tax (PAT) | ₹1,359.92 Cr | ₹1,300.21 Cr |
Analysis:
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Revenue Growth: 6.63% YoY ↑
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PAT Growth: 4.59% YoY ↑
Standalone performance mirrors consolidated growth, showing LIC HFL’s core lending operations remain stable, driven by loan portfolio expansion.
YoY Analysis & Key Highlights
The year-on-year performance of LIC Housing Finance reflects its steady and resilient financial strategy.
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Revenue Performance:
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Consolidated revenue rose 6.67% YoY to ₹7,250.16 crore.
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Driven by strong disbursement growth in retail home loans and moderate pickup in project loans.
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Profitability Trends:
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Consolidated PAT increased to ₹1,363.89 crore, reflecting a 4.41% YoY increase.
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Standalone PAT growth of 4.59% YoY indicates operational efficiency.
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Asset Quality & Margins:
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While the results do not specify GNPA and NNPA ratios, LIC HFL historically maintains prudent credit assessment, ensuring stable margins.
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Strategic Positioning:
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LIC HFL benefits from brand trust, wide distribution channels, and government housing schemes like PMAY, which support loan growth.
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Comparison with Industry Peers:
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Competitors like HDFC Ltd (now merged with HDFC Bank) and PNB Housing Finance reported mixed earnings, with LIC HFL maintaining a balanced growth trajectory.
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Share Price & Long-Term Returns
LIC Housing Finance shares reflected positive market sentiment post-results.
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Opening Price (4th Aug 2025): ₹570.25 per share
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Current Trading Price: ₹589.70 per share
Historical Performance:
| Timeframe | Return (%) |
|---|---|
| 1 Year | -14.06% |
| 5 Years | 127.20% |
| Maximum | 7,479.69% |
Analysis:
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The 1-year negative return indicates short-term underperformance, likely due to market volatility and interest rate fluctuations.
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5-year returns are strong at 127.20%, showing long-term wealth creation potential.
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All-time returns above 7,400% underline LIC HFL’s legacy as a multibagger in the Indian housing finance sector.
Investment Perspective
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Strengths:
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Strong Brand Equity: Backed by LIC, ensuring customer trust.
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Stable Loan Growth: Driven by urban housing demand and affordable housing initiatives.
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Consistent Profitability: Despite macro headwinds, the company maintains steady margins.
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Risks:
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Interest Rate Sensitivity: Rising rates can affect home loan demand.
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Competition: Intense competition from banks and fintech-based mortgage lenders.
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Regulatory Compliance: Changes in RBI/NHB guidelines can impact growth.
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Long-Term Outlook:
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LIC HFL is well-positioned to benefit from India’s urbanization and housing boom.
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With government support for home ownership, the housing finance sector remains a key growth driver.
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Long-term investors may consider accumulating the stock on dips, while short-term traders should remain cautious of volatility.
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Conclusion
LIC Housing Finance’s Q1 FY26 results highlight its resilience and steady growth trajectory.
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Revenue growth of 6.67% reflects loan portfolio expansion.
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PAT growth of 4.41% YoY indicates consistent profitability.
While the stock has underperformed in the short term, long-term fundamentals remain strong, making it an attractive pick for patient investors. The housing finance sector in India continues to offer multi-year growth opportunities, and LIC HFL remains well-positioned to capitalize on them.
Disclaimer
Investing in equities involves market risks. This article is for informational purposes only and does not constitute financial advice. Investors should perform their own research or consult a certified financial advisor before making investment decisions.
