LIC Housing Finance Q4 FY26 profit up 9.4% to Rs 1,497 crore

Key takeaway from the March quarter

LIC Housing Finance reported a year-on-year rise in net profit for the March quarter of FY26, supported by lower provisions for bad loans. The housing finance company said Q4 FY26 net profit increased to Rs 1,497 crore, compared with Rs 1,368 crore in the year-ago quarter. While profitability improved, headline income numbers were softer, with total income slipping year-on-year. The update matters for investors because it shows earnings resilience even as income moderated, and because the board also recommended a dividend for FY26.

What the company reported for Q4 FY26

For the quarter ended March 31, 2026, LIC Housing Finance posted a net profit after tax (PAT) of Rs 1,497.41 crore. This was reported as around 9% to 9.5% growth from Q4 FY25, when profit was about Rs 1,367.9 crore to Rs 1,368 crore. The company’s total income for the quarter came in at about Rs 7,195 crore, down from Rs 7,281 crore a year earlier. Revenue from operations was reported at Rs 7,194.3 crore for Q4 FY26 versus Rs 7,281.1 crore in Q4 FY25, indicating a roughly 1% decline.

Net interest income (NII) improved despite the dip in total income. NII grew 3% year-on-year to Rs 2,221.7 crore in Q4 FY26 from Rs 2,165.3 crore in Q4 FY25. The company also reported total disbursements of Rs 21,019 crore for the quarter, up 10% from Rs 19,156 crore in the corresponding quarter last year.

Lower provisions helped lift profitability

A key driver cited for the profit growth was lower provisioning. Provisions to cover bad loans were reported at Rs 74 crore in Q4 FY26, down from Rs 104 crore in Q4 FY25. In another account of the results, the rise in profit was also linked to moderation in impairment charges and lower expenses. The combination of contained credit costs and steady core income helped offset the impact of slightly lower total income.

This pattern is often closely tracked in lending businesses because changes in provisions can materially affect quarterly profitability. In LIC Housing Finance’s case, the quarter showed that credit-cost pressure eased compared with the year-ago period.

Full-year FY26 performance: profit crosses Rs 5,595 crore

For the full year ended March 31, 2026, LIC Housing Finance reported net profit of Rs 5,595 crore to Rs 5,595.15 crore. This compares with Rs 5,429 crore to Rs 5,429.02 crore in FY25, indicating a rise of about 3% to 3.1%. Revenue from operations for FY26 was reported at Rs 28,764.63 crore, up from Rs 28,037.23 crore in FY25.

The update also included balance-sheet operating indicators. The total outstanding loan portfolio expanded to Rs 320,707 crore, with the individual home loan segment described as a primary growth driver. Earnings per share (EPS) for FY26 were reported at Rs 101.72.

Dividend recommendation: Rs 10 per share

The board recommended a dividend of Rs 10 per equity share of face value Rs 2 for FY26. This was described as a 500% dividend, reflecting the payout as a percentage of the share’s face value. Dividend announcements are typically watched as a signal of management’s confidence in cash generation and capital position, though the final payout depends on shareholder approval and other procedural steps.

Market reaction: stock traded lower after results

LIC Housing Finance shares traded lower on the day the company announced its March quarter results, according to the update. The result set included profit growth but also showed a marginal decline in total income, which can influence near-term sentiment. The report did not specify the magnitude of the stock move.

Additional quarterly comparison points cited

Beyond the year-on-year comparison, one report also compared Q4 FY26 with the immediately preceding quarter. It said the company’s standalone net profit in Q4 FY26 was Rs 1,497.4 crore, compared with Rs 1,383.9 crore in Q3 FY26. Profit before tax (PBT) was reported at Rs 1,934.2 crore in Q4 FY26, up from Rs 1,769.6 crore in Q4 FY25 and Rs 1,742.5 crore in Q3 FY26.

These sequential comparisons help frame whether momentum improved into the year-end quarter, especially when interest income or total income is relatively flat.

Snapshot of reported financials

FY26 summary and balance sheet indicators

Why this result matters for investors

The quarter’s numbers show a familiar trade-off in lending results: profits can rise even when income is slightly lower, provided funding costs, operating costs, and credit costs remain supportive. In this case, lower provisions were explicitly highlighted as a key lever for profitability. NII growth of 3% also suggests the core spread-based earnings held up in the quarter.

At the full-year level, the company reported a modest rise in profit alongside growth in revenue from operations. The reported expansion in the outstanding loan book to Rs 320,707 crore adds context for future earnings capacity, although the update did not provide granular asset-quality ratios.

Conclusion

LIC Housing Finance closed Q4 FY26 with net profit of about Rs 1,497 crore, driven by lower provisions and aided by higher NII, even as total income dipped year-on-year. For FY26, net profit rose to about Rs 5,595 crore, and the board recommended a dividend of Rs 10 per share. Investors are likely to track follow-through on dividend timelines and subsequent updates on disbursements, portfolio growth, and credit costs in upcoming quarters.