THEBUSINESSBYTES BUREAU

MUMBAI, JANUARY 30, 2026

LIC Housing Finance Ltd. announced its unaudited financial results for the third quarter ended December 31, 2025, reflecting steady operational performance, healthy growth in core lending segments and continued improvement in asset quality, even as profitability moderated on a year-on-year basis. The results were approved by the Board of Directors at its meeting held in Mumbai on Friday and have been prepared in accordance with Indian Accounting Standards (IndAS) notified by the Ministry of Corporate Affairs and the National Housing Bank.

During the quarter, the company’s total loan disbursements rose 4 per cent year-on-year to ₹16,096 crore, compared with ₹15,475 crore in the corresponding quarter of the previous financial year. Growth was primarily driven by the individual home loan segment, which recorded disbursements of ₹13,094 crore, up 7 per cent from ₹12,248 crore a year earlier. The non-housing individual loan segment also showed strong momentum, with disbursements increasing 10 per cent to ₹2,304 crore. In contrast, project loan disbursements declined to ₹583 crore from ₹983 crore in the same quarter last year, reflecting a calibrated approach towards wholesale exposure.

Revenue from operations for the quarter stood at ₹7,187 crore, registering a 2 per cent increase over ₹7,057 crore in Q3 FY25. Net Interest Income rose 5 per cent to ₹2,102 crore, supported by better spreads and moderation in borrowing costs. Net Interest Margin for the quarter came in at 2.69 per cent, marginally lower than 2.70 per cent in the year-ago period but higher than 2.62 per cent reported in the preceding quarter, indicating sequential improvement.

Net profit after tax for the quarter was ₹1,383.95 crore, compared with ₹1,431.96 crore in Q3 FY25. Despite the marginal decline in profit, the company continued to strengthen its balance sheet, with the individual home loan portfolio growing 4 per cent year-on-year to ₹2,65,890 crore. The project loan portfolio stood at ₹8,827 crore as on December 31, 2025, broadly stable compared with ₹8,776 crore a year earlier. Overall, the total outstanding loan portfolio increased 5 per cent to ₹3,14,268 crore from ₹2,99,144 crore.

Asset quality indicators showed improvement during the quarter. Under the Expected Credit Loss framework prescribed under IndAS, provisions stood at ₹5,105 crore as on December 31, 2025, translating into a healthy coverage ratio of 54 per cent. Stage 3 exposure at default improved to 2.45 per cent, compared with 2.75 per cent a year ago and 2.51 per cent at the end of the previous quarter, underscoring better credit performance and recoveries.

For the nine months ended December 31, 2025, LIC Housing Finance reported total disbursements of ₹45,525 crore, marginally higher than ₹44,866 crore in the same period last year. Individual home loan disbursements rose 4 per cent to ₹37,831 crore, while non-housing individual loans recorded robust growth of 17 per cent to ₹6,288 crore. Project loan disbursements declined sharply to ₹1,117 crore from ₹2,901 crore in the corresponding period of the previous year.

Revenue from operations during the nine-month period increased 4 per cent to ₹21,583 crore, while Net Interest Income stood at ₹6,206 crore, compared with ₹5,963 crore a year ago. Profit before tax rose to ₹5,146.38 crore, and net profit after tax improved to ₹4,097.74 crore, reflecting stable earnings performance. Net Interest Margin for the nine months stood at 2.66 per cent, slightly lower than 2.71 per cent reported in the corresponding period of the previous year.

Commenting on the performance, Tribhuwan Adhikari, Managing Director and Chief Executive Officer of LIC Housing Finance Limited, said the company delivered a steady quarter with sequential improvement in margins and asset quality. He noted that a reduction in borrowing costs supported margin expansion and profitability, and expressed optimism that the forthcoming Union Budget would provide an additional boost to the housing sector, particularly in the affordable and mid-income segments. He added that the January–March quarter is traditionally strong for the housing finance industry and expressed confidence in closing the financial year with healthy numbers.