LIC Housing Finance Q4 FY26: Profit up 9%, ₹10 dividend

Shares slide despite profit growth

LIC Housing Finance shares traded sharply lower on Thursday after the company reported its March quarter (Q4FY26) results, even as the broader Nifty 50 moved higher in morning deals. The stock opened in the red at ₹570.25 and fell to an intraday low of ₹546.80, down nearly 7%. At around 11:10 AM, it was trading close to the day’s low at about ₹548.50, with 2.3 million shares changing hands on the NSE.

The day’s decline came after a mixed earnings picture: net profit rose year-on-year, but total income slipped and margins tightened. The board also recommended a final dividend of ₹10 per share for FY2025-26, subject to shareholder approval at the next AGM.

What the price action says

The move stood out because the stock has performed relatively better than the benchmark so far in 2026. LIC Housing Finance has gained 4.5% in 2026 to date, while the Nifty 50 has declined 10.3% over the same period. Over the past year, however, LIC Housing Finance has slipped 9%, compared with a 5% decline in the benchmark index.

A separate trading session described in the provided material showed the stock closing 3.17% higher at ₹585.65 on Wednesday after the results, versus a 0.14% rise in the Nifty 50. Taken together, the data points highlight how quickly market reaction can shift between sessions even when headline numbers look supportive.

Q4FY26: Net profit rises 9% YoY

For Q4FY26, LIC Housing Finance reported a year-on-year rise of around 9% in net profit to ₹1,497.41 crore, compared with ₹1,367.9 crore in Q4FY25. Another set of figures in the provided material cited consolidated Q4 profit at ₹1,493 crore versus ₹1,373 crore a year earlier.

The company also reported profit before tax (PBT) of ₹1,934.2 crore in Q4FY26, compared with ₹1,769.6 crore a year earlier. Quarter-on-quarter, PBT was reported at ₹1,742.5 crore in Q3FY26.

Income trends and margin contraction

Net interest income (NII) increased 3% year-on-year to ₹2,221.7 crore in Q4FY26 from ₹2,165.3 crore in Q4FY25. Despite the NII increase, the lender’s interest margin contracted by 5 basis points to 2.80% in the March 2026 quarter.

Total income declined during the quarter. One filing cited total income of ₹7,194.3 crore in Q4FY26 compared with ₹7,281.1 crore in Q4FY25, while another cited ₹7,195 crore versus ₹7,281 crore, and another set showed ₹7,212 crore versus ₹7,304 crore. Interest income moderated to ₹7,009 crore in the quarter from ₹7,117 crore a year earlier.

Disbursements rise, but mix is uneven

LIC Housing Finance reported total disbursements of ₹21,019 crore in Q4FY26, up from ₹19,156 crore in the corresponding quarter of FY2025, a 10% year-on-year increase. Within this, the company said disbursements in the individual home loan segment grew 8% year-on-year.

Non-housing individual loans rose faster, up 25% year-on-year, indicating stronger traction in that segment during the quarter. Project loans, however, slipped 3%, showing a weaker performance in that book.

Lower provisions supported earnings

The company’s Q4 profit growth was also linked to lower provisions for bad loans in the period referenced. Provisions were reported at ₹74 crore in Q4FY26, down from ₹104 crore a year earlier.

Expenses were also lower in the standalone set of numbers provided. Total expenses declined to ₹5,260.3 crore in Q4FY26 from ₹5,511.8 crore in Q4FY25, attributed to lower finance costs and reduced impairment provisions.

FY26 performance: Profit up 3%

For the full financial year 2025-26, LIC Housing Finance reported profit of ₹5,595 crore (also cited as ₹5,595.1 crore) compared with ₹5,429 crore in FY25, a growth of about 3%. Total income for FY26 increased to ₹28,772 crore from ₹28,046 crore in the preceding fiscal.

A standalone figure in the material also stated revenue from operations rose 2.6% year-on-year to ₹28,764.6 crore. These annual numbers suggest growth continued, even as quarterly income showed some moderation.

Asset quality improves

Asset quality indicators improved as of March 31, 2026, based on the data provided. The gross non-performing assets (GNPA) ratio eased to 2.15% from 2.47% a year earlier. The net NPA ratio improved to 1.08% from 1.22%.

These ratios matter for lenders because they influence provisioning needs and the sustainability of earnings, especially in periods where margins tighten.

Dividend announcement and payout timeline

The board recommended a final dividend of ₹10 per equity share for FY2025-26. The company described this as 500% of the face value of ₹2 per share.

The dividend is subject to shareholder approval at the ensuing Annual General Meeting. The company said it will be paid within 30 days after approval.

Key numbers at a glance

Market impact and what investors tracked

The immediate market response combined two signals from the quarter: profit rose, but reported total income declined and margin contracted. In lending businesses, even small changes in spreads and income can influence sentiment, particularly when investors are watching trends in funding costs, asset yields, and provisioning levels.

The dividend recommendation added a shareholder return element, but the stock still fell sharply intraday on Thursday. Trading data showed the decline occurred even as the Nifty 50 was positive in morning deals, indicating the move was company-specific rather than driven by broader market weakness.

Analysis: why the quarter matters

Q4FY26 showed that LIC Housing Finance expanded disbursements and grew profit year-on-year, helped by lower provisions and reduced expenses in the standalone numbers provided. At the same time, total income slipped in the quarter and margins eased to 2.80%, which can become a key focus area if the trend persists.

The improvement in gross and net NPA ratios is another important takeaway because it aligns with the lower provisioning figure cited for the quarter. For investors, these three threads, margins, growth in disbursements by segment, and asset quality, often determine how sustainable earnings are across cycles.

Conclusion

LIC Housing Finance reported Q4FY26 profit growth and recommended a ₹10 final dividend for FY2025-26, but the stock fell nearly 7% intraday in the next session amid a decline in quarterly total income and a 5 bps margin contraction. Shareholders will watch the AGM approval process for the dividend and track whether the company sustains disbursement growth while protecting spreads and asset quality.