More Stories

Informist, Wednesday, Oct. 28, 2026

 

By J. Navya Sruthi

 

MUMBAI – LIC Housing Finance Ltd. is expected to report a slight year-on-year increase in net profit in the September quarter, driven by higher net interest income amid healthy loan growth, according to analysts tracking the company. Higher loan disbursements are expected to boost assets under management during the quarter.  
 

The housing finance company is expected to report a net profit of INR 14.14 billion in the September quarter, up over 4% on year but down 5% on quarter, according to the average of estimates from seven brokerages. The highest estimate for net profit is INR 15.13 billion from Motilal Oswal Financial Services Ltd. and the lowest is INR 13.12 billion from JM Financial Institutional Securities Pvt. Ltd. 

 

The company's net interest income for the September quarter is expected to be INR 21.11 billion, up nearly 4% on year and 2% on quarter, according to the average of estimates. The highest estimate for net interest income is INR 23.04 billion from Prabhudas Lilladher Pvt. Ltd. and the lowest is INR 20.32 billion from Kotak Securities Ltd.

 

In the June quarter, the company reported a net profit of INR 14.88 billion and net interest income of INR 20.76 billion. In the year-ago quarter, net profit was INR 13.54 billion, while net interest income was INR 20.39 billion. 

 

Analysts expect the company's loan disbursements to grow 14-15% on year in the September quarter. JM Financial expects disbursements to reach INR 186 billion, up over 14% on year in the September quarter. The brokerage expects the rise in disbursements to push the company's assets under management up 5% on year to INR 3.28 trillion as of Sept. 30. The brokerage attributed the expected rise in disbursements to a seasonal pickup in demand. 

 

Brokerages expect the housing financier's net interest margin to be 2.50-2.80% during the quarter, against 2.58% a quarter ago. Housing finance companies are better positioned than some other lenders to maintain margin pressure because floating-rate loan books let them reprice assets faster, Mirae Asset Sharekhan Ltd. said in an earnings preview.

 

Prabhudas Lilladher expects the net interest margin to be 2.80% as of Sept. 30, driven by an expected 13% on-year rise in net interest income. According to the brokerage, the company's borrowings are likely to rise over 9% on year to INR 2.86 trillion during the quarter. 

 

Kotak Securities said the spread will likely compress by 10 basis points on quarter and 20 bps on year to 1.5%, as the decline in yields is not offset by the cost of borrowings, which remains stable. The cost-to-average assets under management ratio will likely remain stable at 40 bps, against 39-50 bps in the previous four quarters, the brokerage said. 

 

Both JM Financial and Kotak expect the company's provisions to decline in the September quarter, supporting year-on-year net profit growth. JM Financial expects provisions to fall more than 35% on year to INR 1.09 billion, while Kotak Securities sees a near 30?ll to INR 1.22 billion. 

 

Investors are likely to focus on management's commentary on mortgage demand and loan growth, as well as guidance on margins. LIC Housing Finance will announce its September-quarter results on Friday. At 0929 IST, the company's shares were down 0.3% to INR 508.45 on the National Stock Exchange. The company's shares have fallen 2.8% since it announced its June quarter earnings.

 

Of the 10 research reports on the company available with Informist, four have recommended a 'buy' with an average target price of INR 626 per share, over 23% higher than the current market price. The rest have a 'hold' recommendation with an average target price of INR 583 per share.

 

The following are earnings estimates for LIC Housing Finance for the September quarter from seven brokerages in descending order of the net profit estimate, in INR billion:

 

Brokerage	Net Interest Income	Net Profit
Motilal Oswal Financial Services Ltd.	20.34	15.13
Mirae Asset Sharekhan Ltd.	20.67	15.00
Prabhudas Lilladher Pvt. Ltd.	23.04	14.15
YES Securities (India) Ltd.	20.54	14.02
Nirmal Bang Equities Pvt. Ltd.	22.09	13.83
Kotak Securities Ltd.	20.32	13.73
JM Financial Institutional Securities Pvt. Ltd.	20.81	13.12
Average	21.11	14.14

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000  

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.