LIC Housing Finance Limited Earnings Summary — Q4 FY2026
LIC Housing Finance Reports Sustained Margin Expansion with 38% YoY Profit Growth
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 0.2% sequentially in Q1 FY2027.
- Revenue of ₹7,083 Cr is 1.4% lower year-on-year.
- Revenue has compounded at 0.9% annualised over the last 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹1,499 Cr is 9.9% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 15.6% annualised across the period.
- Operating margin stands at 97.0% in Q1 FY2027.
- Operating margin expanded by 274 bps year-on-year.
- Over the last two years operating margin has expanded by 279 bps.
- PBT margin is 26.8%.
- Expense growth of -48.8% remained below revenue growth of -1.4%.
- Operating profit of ₹6,873 Cr is 1.4% higher year-on-year.
- Operating leverage continues to improve.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 70/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 7,083 | 7,094 | 7,206 | 7,179 | 7,186 | 7,303 | 7,070 | 6,938 | 6,797 | 6,948 |
| Expenses | Softening | 210 | 346 | 474 | 450 | 410 | 546 | 297 | 372 | 392 | 800 |
| Operating Profit | Stable | 6,873 | 6,749 | 6,732 | 6,729 | 6,776 | 6,757 | 6,773 | 6,566 | 6,405 | 6,149 |
| Operating Margin | Stable | 97.0% | 95.1% | 93.4% | 93.7% | 94.3% | 92.5% | 95.8% | 94.6% | 94.2% | 88.5% |
| Other Income | Accelerating | 5 | 2 | 6 | 1 | 0 | 0 | 1 | 2 | 2 | 0 |
| Interest | Stable | 4,946 | 4,786 | 4,942 | 4,994 | 5,047 | 4,951 | 4,950 | 4,879 | 4,749 | 4,649 |
| Depreciation | Improving | 30 | 31 | 34 | 32 | 25 | 26 | 25 | 24 | 23 | 18 |
| Profit Before Tax | Stable | 1,901 | 1,933 | 1,762 | 1,703 | 1,705 | 1,780 | 1,798 | 1,665 | 1,635 | 1,482 |
| Tax | Stable | 402 | 441 | 364 | 354 | 341 | 406 | 363 | 337 | 329 | 400 |
| Net Profit | Improving | 1,499 | 1,493 | 1,398 | 1,349 | 1,364 | 1,373 | 1,435 | 1,328 | 1,306 | 1,082 |
| Net Margin | Improving | 21.2% | 21.0% | 19.4% | 18.8% | 19.0% | 18.8% | 20.3% | 19.1% | 19.2% | 15.6% |
Key Takeaways
- Net profit grew 8.7% year-over-year to ₹1,493 Cr, marking a steady recovery in bottom-line performance.
- Financing margins expanded to 27% in Q4 FY2026, up significantly from 22% in the same period two years prior.
- Interest expenses decreased sequentially for the first time in several quarters, dropped to ₹4,786 Cr from ₹4,942 Cr in Q3.
- The company continues to hold a massive borrowing base of ₹277,539 Cr, reflecting its highly leveraged business model.
- While revenue growth remains low at ~3.8% YoY, disciplined expense management has driven profit before tax to ₹1,933 Cr.
- The 10-year stock price return (1% CAGR) significantly lags behind net profit growth (13% CAGR), indicating market caution.
Management Guidance
Management is focusing on strategic pivots toward Loan Against Property (LAP) and developer finance to combat margin erosion in traditional retail housing.
Sentiment Shift
Improving
Margins have shown a clear upward trajectory over the last four quarters, reaching a peak of 27% while credit costs (expenses) remained contained.
Outlook
The outlook remains stable with an expectation of maintained ROE around 14-16%. Growth is likely to remain in the single digits, with the primary upside coming from further operational efficiencies and asset quality management in the developer loan segment.
From the Annual Report (Key Quotes)
“LIC Housing Finance Limited (LICHFL) is India's largest housing finance company, significantly backed by the brand equity of LIC of India.”
“The financial profile is characterized by low P/E multiples reflecting investor caution regarding asset quality.”
“Recent performance suggests a recovery in financing margins, which improved from 14% in 2022 to a forecasted 25-27%.”
Official Quarterly Documents
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This summary is AI-generated from LIC Housing Finance Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.