LIC Housing shares in focus as profit grows 5% YoY in Q1, asset quality improves- Grow Mudra

LIC Housing shares in focus as profit grows 5% YoY in Q1, asset quality improves

04 Aug , 2025 By : Debdeep Gupta

Shares of LIC Housing Finance will be in focus on August 4 after the company posted a modest set of results for the April–June quarter (Q1FY26).

So far this year, the stock has declined by 5 percent, underperforming the Nifty 50 index which is up 3 percent during the same period.

For the June quarter, LIC Housing Finance reported a 5 percent year-on-year rise in net profit to Rs 1,360 crore, compared to Rs 1,300 crore a year ago. Total income for the quarter increased to Rs 7,233 crore from Rs 6,784 crore.

Total expenses also rose during the quarter, climbing to Rs 5,534 crore from Rs 5,155 crore in the same period last year.

The lender showed an improvement in asset quality. Its gross non-performing asset (NPA) ratio improved to 2.62 percent from 3.29 percent as of June 2024. Net NPA also declined to 1.3 percent from 1.68 percent in the year-ago period.

Disbursements for the quarter stood at Rs 13,116 crore, up 2 percent from Rs 12,915 crore in the same period last year. Within this, disbursements for individual home loans rose 3 percent to Rs 11,247 crore, while project loan disbursements fell sharply to Rs 156 crore from Rs 521 crore in Q1FY25.

Tribhuwan Adhikari, Managing Director and CEO of LIC Housing Finance, said that demand remained tepid despite the Reserve Bank of India cutting the repo rate by 100 basis points over time.

“We were expecting a surge in demand following the repo rate cut. Unfortunately, that did not happen. The only explanation could be that people believe we are in the middle of the rate cycle and are waiting for rates to bottom out,” he said.