LIC Housing Finance shares fall over 4% despite Q2 profit rising 2% YoY to ₹1,358 crore, NII up 3%

At around 12:05 pm, the stock was trading 3.5% lower at ₹572.70 per equity share.

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

LIC Housing Finance Q2 results

The finance and insurance entity posted a 2% year-on-year (YoY) fall in its standalone net profit to ₹1,353.87 crore in the September quarter of FY26, compared to ₹1,328.89 crore in the corresponding quarter of the previous fiscal year.

Its net interest income (NII) stood at ₹2,038 crore during the quarter under review, marking a 3% YoY increase from ₹1,974 crore in the second quarter of the 2024-25 fiscal year (Q2FY25), it said in a regulatory filing late on Wednesday.

However, the mortgage firm’s net interest margin (NIM) contracted by nine basis points (bps) YoY to 2.61% in Q2FY26, as against 2.71% in the year-ago period.

Its revenue from operations stood at ₹7,163 crore in the September quarter of FY25, reflecting a 3% YoY growth from ₹6,926 crore in Q2FY25.

The firm’s asset quality improved, with gross non-performing assets (GNPA) falling to 2.51% as of September 30, 2025, against 3.05% a year earlier.

Similarly, its net NPA (NNPA) was down at 1.19% at the end of the September FY26 quarter, from 1.57% in the year-ago period.

During the quarter, the company promoted by LIC reported a 0.99% YoY decline in its total disbursements to ₹16,313 crore, compared to ₹16,476 crore in the September quarter of FY25, it said in a press release.

Out of this, disbursements in the individual home Loan segment grew by 3% YoY to ₹13,490 crore in the September quarter of the current fiscal year, from ₹13,051 crore in the same quarter of FY25. Furthermore, project loans stood at ₹378 crore, marking a 72.94% YoY fall from ₹1,397 crore.

As of September 30, 2025, the company’s loan portfolio stood at ₹3.12 lakh crore, up 6% YoY from ₹2.95 lakh crore as on September 30, 2024, it added.

What management said

Commenting on the earnings, Tribhuwan Adhikari, Managing Director & Chief Executive Officer of LIC Housing Finance Limited, said: “Our Q2 FY2026 results reflect a continued momentum within the housing finance sector, and we anticipate a positive business growth during the current financial year due to lower interest rates, improved sentiments, and a favourable macroeconomic environment.”

“With partnerships, AI-enabled workflows, and our single-product focus, we’re transforming home finance into a seamless digital journey for India’s next-generation home-buyers. As we move ahead, our focus remains on the affordable and mid-segment housing markets, which continue to benefit from supportive government initiatives such as PMAY 2.0. Wishing everyone a very happy festive season,” Adhikari added.

LIC Housing Finance has a total market capitalisation of ₹31,584.62 crore, as of October 30, 2025, according to data on the NSE.