LIC Housing Finance FY26 Results: Profit Up 3%, Dividend Payout Declared

LIC Housing Finance has reported a Profit After Tax (PAT) of ₹5,595.15 Crore for the fiscal year 2025-26. This marks a growth of approximately 3% from the previous fiscal year's PAT of ₹5,429.02 Crore.

Reader Takeaway: Stable profit growth and improved asset quality; continued digital focus is key.

What just happened

LIC Housing Finance announced its financial results for the fiscal year ending March 31, 2026. The company's total loan portfolio stood at ₹3,20,707 Crore. Profit After Tax (PAT) for the fiscal year was ₹5,595.15 Crore, a slight increase from ₹5,429.02 Crore in FY 2024-25. Earnings Per Share (EPS) improved to ₹101.72 from ₹98.70. The company also recommended a dividend of ₹10 per equity share (500%).

Why this matters

The results indicate a stable performance for LIC Housing Finance. Growth in the loan book, coupled with improvements in asset quality (Gross NPA reduced to 2.15% from 2.47%) and a lower cost of funds (7.27% from 7.73%), provides a positive outlook. The recommended dividend of ₹10 per share signals confidence in future earnings and a commitment to returning value to shareholders.

The backstory

For FY 2024-25, LIC Housing Finance had reported a PAT of ₹5,429.02 Crore and an EPS of ₹98.70. The company has been focusing on digital initiatives and diversifying its liability mix to manage interest rate risks.

What changes now

With these results, investors can assess the company's performance against its strategic goals. The recommended dividend, if approved, will provide direct returns to shareholders. The continued growth in digital sourcing via the HOMY app (9.72% of business) suggests a successful digital transformation strategy.

Risks to watch

While the results are positive, investors should keep an eye on the company's ability to maintain its Net Interest Margins (NIM) of 2.68% amidst evolving interest rate scenarios. Expansion into Tier 2 and Tier 3 cities through the 'SYNERGY' initiative will be crucial for sustained growth.

Peer comparison

(No specific peer comparison data was provided in the filing.)

Context metrics (time-bound)

• Total Income: ₹28,771.66 Crore (FY 2025-26) vs ₹28,046.13 Crore (FY 2024-25)
• PAT: ₹5,595.15 Crore (FY 2025-26) vs ₹5,429.02 Crore (FY 2024-25)
• Gross NPA: 2.15% (March 31, 2026) vs 2.47% (March 31, 2025)
• Net NPA: 1.08% (March 31, 2026) vs 1.22% (March 31, 2025)
• Cost of Funds: 7.27% (FY 2025-26) vs 7.73% (FY 2024-25)
• NIM: 2.68% (FY 2025-26)

What to track next

Investors should monitor the progress of the 'SYNERGY' initiative and the continued adoption of digital platforms for loan sourcing and collections. The company's performance in managing its asset quality and profitability in the coming quarters will be key.