LIC Housing Finance Q3 profit declines 3% amid stable revenue, improved asset quality

The mortgage arm of insurance behemoth LIC Ltd, LIC Housing Finance Ltd, on Friday (January 30) reported a net profit of ₹1,398.02 crore for the quarter. The profit declined 3.61% quarter-on-quarter and was down 2.57% year-on-year from ₹1,434.84 crore.

Revenue from operations stood at ₹7,208.92 crore during the quarter. This marked a 1.96% increase year-on-year from ₹6,767.76 crore, while revenue was marginally lower by 0.41% on a sequential basis.

EBITDA for the quarter came in at ₹6,731.48 crore. On a quarter-on-quarter basis, EBITDA declined 0.04% from ₹7,179.25 crore, while it was lower by 0.54% on a year-on-year basis.

Also Read: LIC HFL Q1 profit rises 5% YoY; disbursements steady, asset quality improves

The company's outstanding loan portfolio rose 5% to ₹3,14,268 crore. The individual home loan portfolio increased 4% to ₹2,65,890 crore, reflecting continued traction in core housing finance activities.

Total disbursements for Q3 FY26 stood at ₹16,096 crore, compared with ₹15,475 crore in the corresponding period last year, marking a 4% increase. Individual home loan disbursements rose 7% year-on-year to ₹13,094 crore from ₹12,248 crore. Non-housing individual loan disbursements also saw stronger growth, increasing 10% to ₹2,304 crore from ₹2,094 crore.

Net interest income for the quarter came in at ₹2,102 crore, up 5% from ₹2,000 crore a year ago. Net interest margins improved to 2.69% in Q3 FY26, compared with 2.62% in Q2 FY26, while remaining broadly stable versus 2.70% in Q3 FY25.

Also Read: LIC Housing Finance Q2 results: Net profit rises 1.6% YoY, NII up 3.3%

Asset quality showed improvement, with Stage 3 exposure at default (EAD) declining to 2.45% as of December 31, 2025, from 2.51% as of September 30, 2025, and 2.75% as of December 31, 2024. Total expected credit loss (ECL) provisions stood at ₹5,105 crore as of December 31, 2025.

Return on average equity declined to 14.5% in Q3 FY26 from 17% in Q3 FY25, reflecting lower profitability during the quarter. Return on average assets also eased to 1.77% in Q3 FY26, compared with 1.93% in the corresponding quarter of the previous financial year. Earnings per share, calculated on a paid-up equity share capital of ₹2 per share, stood at ₹25.16 in Q3 FY26, lower than ₹26.03 reported in Q3 FY25.

Shares of LIC Housing Finance Ltd ended at ₹527.00, up by ₹4.45, or 0.85%, on the BSE.

Also Read: LIC Housing Finance Q4 profit surges 25% to ₹1,368 crore, NII falls 3%; ₹10 dividend declared