LIC Housing Finance stock: Q2 profit rises 11%

Published on 11/02/2026 at 00:39 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

LIC Housing Finance stock is in focus after the lender reported stronger quarterly earnings. Higher loan balances supported growth, while margins narrowed.

Profit growth meets softer margins

LIC Housing Finance reported stronger quarterly earnings while net interest income grew only modestly.
Improved asset-quality ratios supported the result, but the narrower net interest margin remains a focus for investors.

LIC Housing, INE115A01026, Illustration mit AI erstellt.

LIC Housing Finance reported an 11 percent year-on-year increase in net profit for the quarter ended September 30, 2026. The result was reported by The Hindu BusinessLine on Saturday, October 31.

Loan book expands as income lags

Net interest income increased 2 percent year on year to 2,088 crore rupees, compared with 2,038 crore rupees a year earlier. The net interest margin narrowed to 2.58 percent from 2.62 percent, indicating that loan growth did not translate into wider spreads during the quarter.

The outstanding loan portfolio rose 5 percent to 3.26 lakh crore rupees from 3.11 lakh crore rupees a year earlier. For investors, the combination points to continued balance-sheet expansion alongside pressure on lending profitability.

Credit quality improves

Gross non-performing assets fell to 2.05 percent of advances in September 2026 from 2.65 percent a year earlier. Net non-performing assets declined to 1.06 percent from 1.19 percent, supporting the earnings performance and reducing near-term asset-quality concerns.