LIC HFL profit CAGR outpaced disbursement growth over five years

LIC Housing Finance Ltd reported a 25% compound annual growth rate in profit after tax from 2022 to 2026, against 2% for disbursements. LIC HFL’s profit rose from Rs 2,288 crore to Rs 5,595 crore, while its loan portfolio grew at a 6% CAGR and return on average equity declined to 14% in 2026.

How did LIC HFL’s profit growth compare with disbursements?

LIC HFL’s profit after tax expanded materially faster than its disbursements across the 2022-2026 period shown in the presentation. Profit after tax increased from Rs 2,288 crore in 2022 to Rs 2,891 crore in 2023, Rs 4,765 crore in 2024, Rs 5,429 crore in 2025 and Rs 5,595 crore in 2026. LIC HFL identifies this progression as a 25% CAGR, and the largest annual rise was Rs 1,874 crore between 2023 and 2024.

Disbursements rose from Rs 61,848 crore in 2022 to Rs 66,544 crore in 2026, which LIC HFL presents as a 2% CAGR. The path was uneven: disbursements reached Rs 64,115 crore in 2023, fell to Rs 58,937 crore in 2024, recovered to Rs 64,022 crore in 2025 and reached the five-year high in 2026. The increase from 2022 to 2026 was Rs 4,696 crore.

What happened to LIC HFL’s loan portfolio and income?

LIC HFL’s loan portfolio increased from Rs 251,120 crore in 2022 to Rs 320,707 crore in 2026, a stated 6% CAGR. The portfolio rose in every year displayed: Rs 275,047 crore in 2023, Rs 286,844 crore in 2024, Rs 307,732 crore in 2025 and Rs 320,707 crore in 2026. The five-year increase was Rs 69,587 crore, compared with the Rs 4,696 crore rise in annual disbursements.

Income rose at a stated 10% CAGR, from Rs 19,953 crore in 2022 to Rs 28,772 crore in 2026. It increased by Rs 2,721 crore in 2023 and Rs 4,561 crore in 2024, before rising by Rs 811 crore in 2025 and Rs 726 crore in 2026. Profit after tax likewise increased by a smaller Rs 664 crore in 2025 and Rs 166 crore in 2026, following the Rs 1,874 crore increase in 2024.

Did LIC HFL’s credit-quality indicators improve over five years?

LIC HFL’s Stage 3 exposure at default, or EAD, declined from 4.64% in 2022 to 2.16% in 2026. Stage 3 EAD was 4.37% in 2023, 3.31% in 2024 and 2.47% in 2025, meaning it declined in each year-to-year comparison shown. The 2026 ratio was 2.48 percentage points below the 2022 level.

LIC HFL’s total provisions declined after reaching Rs 7,230 crore in 2023. The presentation defines total provisions as expected credit loss, or ECL, provisions across Stage 1, Stage 2 and Stage 3. Total provisions were Rs 5,839 crore in 2022, Rs 6,270 crore in 2024, Rs 4,899 crore in 2025 and Rs 4,569 crore in 2026, leaving the 2026 amount Rs 2,661 crore below the 2023 peak.

How did LIC HFL’s efficiency and returns change?

LIC HFL’s operating expense-to-total-income ratio was 4.75% in 2022 and 4.62% in 2026. The ratio declined to 4.36% in 2023 and 4.21% in 2024, then increased to 4.92% in 2025 before falling by 0.30 percentage points in 2026. Profit per employee increased each year, from Rs 92.73 lakh in 2022 to Rs 233.23 lakh in 2026.

LIC HFL’s return on average equity was 14.00% in 2026, down from 16.00% in both 2024 and 2025. It was 11.00% in 2022 and 12.00% in 2023. Return on average loan assets moved from 0.95% in 2022 to 1.83% in 2025 before easing to 1.78% in 2026, while earnings per share rose from Rs 43.14 to Rs 101.72 and book value per share rose from Rs 414.88 to Rs 751.24 over 2022-2026.

How did earnings and book value per share progress?

LIC HFL’s earnings per share increased from Rs 43.14 in 2022 to Rs 101.72 in 2026, with annual figures of Rs 52.56 in 2023, Rs 86.63 in 2024 and Rs 98.70 in 2025. The figures are stated on Rs 2 paid-up shares in the presentation. The 2026 amount was Rs 58.58 above the 2022 figure.

LIC HFL’s book value per share rose from Rs 414.88 in 2022 to Rs 751.24 in 2026. It was Rs 492.38 in 2023, Rs 570.40 in 2024 and Rs 659.09 in 2025. This Rs 336.36 increase over the period occurred alongside the decline in return on average equity from 16.00% in 2025 to 14.00% in 2026.

Conclusion

LIC HFL’s five-year presentation shows profit after tax growing at a stated 25% CAGR, ahead of income at 10%, the loan portfolio at 6% and disbursements at 2%. The period also included a decline in Stage 3 EAD from 4.64% to 2.16% and total ECL provisions from Rs 5,839 crore to Rs 4,569 crore, while profit per employee rose to Rs 233.23 lakh.

The key unresolved movement in the disclosed data is whether returns recover after 2026. Return on average equity declined from 16.00% in 2024 and 2025 to 14.00% in 2026, and return on average loan assets eased from 1.83% to 1.78%; subsequent reporting can show whether these changes persist alongside the 2026 disbursement level of Rs 66,544 crore.