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Informist, Wednesday, Jul. 29, 2026

By J. Navya Sruthi

MUMBAI – LIC Housing Finance Ltd. is expected to report a higher net profit from a year ago on the back of a likely rise in net interest income and healthy loan growth, according to analysts tracking the company. These factors are also likely to support the company's net interest margin for the June quarter.  

The housing finance company is expected to report a net profit of INR 14.93 billion for the June quarter, up nearly 10% on year but down nearly 0.3% on quarter, according to the average of estimates from eight brokerages. The highest estimate for net profit is INR 15.50 billion from PhillipCapital (India) Pvt. Ltd. and the lowest is INR 14.49 billion from Kotak Securities Ltd. 

The company's net interest income for the June quarter is expected at INR 22.29 billion, up nearly 8% on year and over 0.3% on quarter, according to the average of eight estimates. The highest estimate for net interest income is INR 23.33 billion from PhillipCapital and the lowest is INR 21.65 billion from BofA Securities.  

In the March quarter, the company had reported a net profit of INR 14.97 billion and net interest income of INR 22.22 billion. Its net profit in the year-ago quarter was INR 13.60 billion, and the net interest income was INR 20.66 billion. 

Analysts expect the housing finance company's loans to grow 4% on year in the June quarter. "We expect LIC HF to report 8% YoY (year-on-year) growth in disbursements and loan growth of 4% (on year)," Kotak Securities said in an earnings review. However, analysts expect flat loan book growth on a quarterly basis. The expected loan growth is much lower than the management's guidance of 10-12% for the financial year 2026-27 (Apr-Mar) given during the March quarter analyst concall. 

The net interest margin of the housing finance company is expected to be 2.6-2.9% for the June quarter. The company's net interest margin was 2.7% in the year-ago quarter and 2.8% in the March quarter. In the previous quarter, the management had given guidance of 2.6-2.7% for the net interest margin in the June quarter.      

Motilal Oswal expects the company's yields on investments and margins to decline sequentially. "Spread will likely remain stable sequentially at 1.8% (up 4 basis points on year) as decline in yields shall be offset by decline in cost of borrowing," Kotak Securities said.

The company's earnings per share are likely to rise 14% on year and nearly 4% on quarter to INR 28.2 in the June quarter, according to Motilal Oswal brokerage firm. Analysts also expect healthy loan growth in disbursements, with Kotak Securities expecting 8% growth in disbursements in the June quarter.  

Investors are likely to focus on the management's commentary about mortgage demand, loan growth, and guidance on margins. LIC Housing Finance will detail its June quarter financial results Thursday. At 1018 IST, its shares were up nearly 1% at INR 550.20 apiece on the National Stock Exchange. Shares of the company have fallen nearly 2% since May 14, when it detailed the March quarter earnings.

Of the nine research reports on the company available with Informist, three have a "buy" recommendation on the stock with an average target price of INR 671 per share, which is 22% higher than the current market price. The rest have a "hold" call on the stock.

Following are earnings estimates for the June quarter, in INR billion, for LIC Housing Finance, in descending order of net profit estimates:

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Edited by Himanshi Gupta

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