LIC Housing Finance Shares Dipped Over 2%: PAT Up 25% in Q4FY25

On May 16, 2025, LIC Housing Finance shares fell over 2%, reaching a day low of 610.95 at 09:40 AM, after opening at 637.75 on BSE. The drop in LIC Housing Finance shares follows the release of financial results for the Q4 and financial year ended March 31, 2025.

LIC Housing Finance Q4FY25 Earnings Highlights

During Q4FY25. LIC Housing Finance reported a total disbursement of ₹19,156 crore in the fourth quarter ended March 31, 2025, registering a 5% growth over ₹18,232 crore during the same period last year. The Individual Home Loan segment continued to drive the business with disbursements of ₹15,383 crore, reflecting an 8% year-on-year growth. However, disbursements under the Project Loan segment declined to ₹875 crore, down from ₹1,501 crore in Q4 FY2024.

Revenue from operations rose to ₹7,283.33 crore in Q4 FY2025, up 5% compared to ₹6,936.41 crore in the corresponding quarter last year. Despite this increase in income, the company’s Net Interest Income (NII) saw a slight decline to ₹2,166.44 crore, compared to ₹2,237.60 crore in Q4 FY2024. The Net Interest Margin (NIM) for the quarter stood at 2.86%, lower than 3.15% reported in the same quarter of the previous year, though it improved from 2.70% in Q3 FY2025.

Profitability remained strong during the quarter, with Profit Before Tax (PBT) rising by 20% to ₹1,769.58 crore from ₹1,476.18 crore in Q4 FY2024. Net Profit After Tax (PAT) also showed robust growth, increasing by 25% to ₹1,367.96 crore compared to ₹1,090.82 crore in the same period last year.

On the portfolio front, the Individual Home Loan book stood at ₹2,61,562 crore as of March 31, 2025, reflecting a 7% growth year-over-year. The Project Loan portfolio expanded by 15% to ₹9,213 crore. Overall, the company’s total outstanding loan portfolio grew by 7%, reaching ₹3,07,732 crore, up from ₹2,86,844 crore at the end of March 2024.

LIC Housing Finance FY25 Financial Highlights

For the full financial year ended March 31, 2025, LIC Housing Finance achieved total disbursements of ₹64,022 crore, an increase of 9% over ₹58,937 crore disbursed in FY2024. Disbursements under the Individual Home Loan segment reached ₹51,614 crore, up 5% from ₹49,103 crore in the previous year. The Project Loan segment reported a substantial 48% growth, with disbursements rising to ₹3,776 crore from ₹2,560 crore in FY2024.

The company’s revenue from operations for FY2025 stood at ₹28,050.14 crore, reflecting a 3% growth from ₹27,228.22 crore recorded in FY2024. However, Net Interest Income (NII) declined slightly to ₹8,129.51 crore compared to ₹8,650.89 crore in the previous year. The Net Interest Margin (NIM) also narrowed to 2.73% for FY2025, down from 3.08% in FY2024.

Despite the marginal compression in margins, LIC Housing Finance posted a healthy 13% rise in Profit Before Tax (PBT), which stood at ₹6,855.81 crore for the year, compared to ₹6,053.92 crore in FY2024. Net Profit After Tax (PAT) also grew by 14% year-on-year, reaching ₹5,429.02 crore, up from ₹4,765.41 crore.

Reflecting its strong performance, the Board of Directors has recommended a dividend of 500% for the financial year.

Also Read: Best Government Stocks in India for May 2025

Conclusion

LIC Housing Finance Ltd. delivered a strong financial performance in Q4 and FY25, marked by steady growth in disbursements and profitability despite pressure on margins. The company’s focus on the Individual Home Loan segment continued to yield positive results, while the Project Loan segment showed a notable recovery on an annual basis.

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