LIC Housing Finance Q2 profit rises 11.7% on impairment reversals

LIC Housing Finance Limited reported consolidated profit after tax of Rs 1,506.59 crore for the quarter ended September 30, 2026, up 11.7% from Rs 1,349.37 crore a year earlier. The increase came as impairment on financial instruments changed to a Rs 92.57 crore reversal from an expense, while total income rose 1.5%.

Why did LIC Housing Finance's Q2 profit increase?

LIC Housing Finance's Q2 profit increased primarily because impairment on financial instruments moved from an expense of Rs 71.99 crore in the September 2025 quarter to a Rs 92.57 crore reversal in the September 2026 quarter. Consolidated profit before tax rose to Rs 1,919.99 crore from Rs 1,703.00 crore, while profit after tax increased by Rs 157.22 crore.

Total expenses declined 2.1% year on year to Rs 5,275.24 crore from Rs 5,387.46 crore. The impairment movement offset higher finance costs, which rose to Rs 5,022.76 crore from Rs 4,995.16 crore, and higher other expenses of Rs 115.64 crore against Rs 88.49 crore. Tax expense increased to Rs 413.40 crore from Rs 353.63 crore.

Earnings per share, or EPS, rose to Rs 27.39 in the September 2026 quarter from Rs 24.53 a year earlier. Profit attributable to owners was Rs 1,506.45 crore, while non-controlling interest accounted for Rs 14 lakh. Total comprehensive income attributable to owners was Rs 1,508.12 crore.

How did LIC Housing Finance's revenue and lending segment perform?

LIC Housing Finance's total income was Rs 7,194.43 crore in the September 2026 quarter, 1.5% above Rs 7,090.44 crore a year before. Revenue from operations was Rs 7,194.22 crore versus Rs 7,089.80 crore, while interest income increased to Rs 7,121.55 crore from Rs 7,041.91 crore.

The loans segment remained the largest contributor, reporting revenue of Rs 7,182.53 crore and a segment result of Rs 1,918.55 crore. That compared with revenue of Rs 7,080.40 crore and a result of Rs 1,704.71 crore in the prior-year quarter. The segment provides finance for the purchase, construction, repair and renovation of houses and buildings.

Other segments reported quarterly revenue of Rs 39.56 crore and a segment result of Rs 13.48 crore, compared with Rs 33.67 crore and Rs 9.69 crore, respectively, a year earlier. These operations include financial-product marketing, assisted-living community centres, asset management and trusteeship. Inter-segment adjustments reduced total revenue by Rs 27.66 crore.

Loans segment assets stood at Rs 3,30,073.61 crore on September 30, 2026, compared with Rs 3,19,066.85 crore a year earlier. Consolidated segment assets were Rs 3,30,176.28 crore, total segment liabilities were Rs 2,86,292.75 crore and net assets were Rs 43,883.53 crore. LIC Housing Finance said no single customer represented 10% or more of total revenue for the period.

What do LIC Housing Finance's half-year results show?

LIC Housing Finance's half-year profit after tax rose 10.8% to Rs 3,005.62 crore for the half year ended September 30, 2026, from Rs 2,713.37 crore a year earlier. The rise occurred while total income was almost unchanged at Rs 14,278.30 crore, compared with Rs 14,276.91 crore in the corresponding half year.

The half-year impairment line changed to a Rs 256.80 crore reversal from a Rs 193.66 crore expense in the earlier period. Total expenses declined to Rs 10,460.07 crore from Rs 10,869.61 crore, and profit before tax increased to Rs 3,821.17 crore from Rs 3,407.60 crore. Finance costs fell to Rs 9,969.11 crore from Rs 10,042.25 crore, although employee-benefit expense rose to Rs 355.80 crore from Rs 336.27 crore.

Half-year EPS was Rs 54.64, compared with Rs 49.32 in the previous year. The loans segment generated Rs 14,246.78 crore in half-year revenue, marginally below Rs 14,249.86 crore a year earlier, but its segment result increased to Rs 3,806.98 crore from Rs 3,403.87 crore. Other segments' result rose to Rs 25.26 crore from Rs 13.95 crore.

What changed in LIC Housing Finance's cash flows and credit disclosures?

LIC Housing Finance used Rs 1,576.88 crore in operating activities during the half year ended September 30, 2026, compared with Rs 4,238.84 crore used a year earlier. Net cash from operations before net loan disbursements was Rs 3,958.18 crore, against cash used of Rs 75.44 crore, but net loans disbursed increased to Rs 5,535.06 crore from Rs 4,163.40 crore.

The cash-flow statement recorded an expected credit loss, or ECL, adjustment of negative Rs 279.61 crore, compared with a positive Rs 174.76 crore in the prior-year half. The consolidated profit-and-loss statement showed a Rs 256.80 crore impairment reversal over the same period. Cash and cash equivalents ended September 30, 2026 at Rs 239.68 crore, down from Rs 293.70 crore a year earlier.

Financing activities generated Rs 890.49 crore, below Rs 1,490.51 crore in the prior-year half. Borrowing proceeds were Rs 71,470.34 crore and repayments were Rs 68,150.94 crore, while deposits net of repayments were negative Rs 1,840.03 crore, compared with positive Rs 3,015.60 crore a year earlier. LIC Housing Finance paid Rs 550.06 crore in final dividends during September 2026.

What regulatory and portfolio matters did LIC Housing Finance disclose?

LIC Housing Finance identified loans aggregating Rs 19,610 crore for reclassification from housing finance to non-housing finance during the September 2026 quarter. The company said the reclassification had no impact on aggregate loan assets. It said the impact on its capital adequacy ratio, or CAR, would be recomputed.

Accounts classified as standard after implementation of a resolution plan totalled Rs 1,396.46 crore on September 30, 2026, down from Rs 1,555.13 crore at March 31, 2026. The half-year movement included Rs 31.12 crore of debt slipping into non-performing assets, or NPAs, Rs 5.69 crore written off, and Rs 187.10 crore paid by borrowers.

Projects under implementation increased to 88 accounts with total principal outstanding of Rs 2,253.56 crore at quarter-end, from 85 accounts and Rs 2,183.38 crore at the quarter's start. During the quarter, 17 accounts worth Rs 45.88 crore were sanctioned and one account worth Rs 14.30 crore achieved its date of commencement of commercial operations, or DCCO. The disclosure showed no resolution process invoked among the end-quarter projects.

Conclusion

LIC Housing Finance's September-quarter earnings growth was driven principally by the movement in credit impairment rather than broad revenue expansion. Quarterly revenue from operations increased by Rs 104.42 crore year on year, while the impairment line changed by Rs 164.56 crore from an expense to a reversal and total expenses fell by Rs 112.22 crore.

The next disclosed matter to watch is the CAR recomputation following the Rs 19,610 crore loan reclassification. Subsequent impairment and ECL movements, net loan disbursements and the Rs 1,396.46 crore of resolution-plan accounts, including Rs 31.12 crore that slipped into NPAs during the half year, will also remain relevant measures.