LIC Housing Finance Shares Fall After Q2 FY26 Results; Net Profit Down 2%

LIC Housing Finance shares declined as much as 4.44% to an intra-day low of ₹567.10 on the NSE on October 30 after the company announced its Q2 FY26 results. At 12:05 pm, the stock was trading 3.5% lower at ₹572.70.

Stock Performance Overview

The scrip has fallen nearly 2% over the past five days but gained over 1% in the last month. It has lost about 5% in the past six months and on a year-to-date basis, reflecting mixed investor sentiment.

Financial Highlights for Q2 FY26

• Net Profit: ₹1,353.87 crore, down 2% YoY from ₹1,328.89 crore
• Net Interest Income (NII): ₹2,038 crore, up 3% YoY from ₹1,974 crore
• Net Interest Margin (NIM):61%, down 9 bps YoY from 2.71%
• Revenue from Operations: ₹7,163 crore, up 3% YoY from ₹6,926 crore

Despite revenue and NII growth, margin contraction and lower profit impacted overall performance.

Asset Quality and Disbursements

• Gross NPA:51%, improved from 3.05% a year ago
• Net NPA:19%, down from 1.57% YoY

Total disbursements declined 0.99% YoY to ₹16,313 crore. Individual home loan disbursements grew 3% YoY to ₹13,490 crore, while project loans fell sharply by 72.94% YoY to ₹378 crore.

Loan Portfolio and Business Updates

As of September 30, 2025, LIC Housing Finance’s loan portfolio stood at ₹3.12 lakh crore, up 6% YoY from ₹2.95 lakh crore. The company continues to focus on retail housing loans amid subdued project lending.

Read More: LIC Mutual Fund Launches Consumption Fund.

Conclusion

LIC Housing Finance reported stable revenue and improved asset quality in Q2 FY26, but profit declined and margins contracted. The sharp fall in project loan disbursements and market reaction highlight near-term challenges for the mortgage lender.

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