LIC Housing Finance Q4 Results: Profit rises 25% YoY

Mortgage lender LIC Housing Finance on Thursday posted a 25% year-on-year growth in net profit in the fourth quarter of fiscal year 2025 at ?1,367.96 crore.? This is against a net profit of ?1,090.82 crore in the corresponding quarter of the last fiscal year. The increase in profit was significantly aided by lower bad loans provisions. Provisions were at ?109 crore in Q4 FY25, much lower than ?428 crore in the corresponding period last year. Aggregate provisions for expected credit loss (ECL) as of March 31, 2025, were ?4,899.03 crore, down from ?6,270.06 crore in the previous year.

?Revenue and Margins

Operations revenue increased modestly, increasing 5% year-on-year to ?7,283.33 crore in Q4 FY25 from ?6,936.41 crore in Q4 FY24. But the net interest income (NII) dropped marginally by 3% at ?2,166.44 crore during the fourth quarter ending March 2025 from ?2,237.60 crore during the corresponding period a year ago.The net interest margin (NIM) for the quarter stood at 2.86%, down from the 3.15% in Q4 FY24. It is worth noting that the NIM showed improvement when compared to the third quarter of FY25.

Loan Disbursements

Overall loan disbursements for the fourth quarter showed a 5% rise year-on-year at ?19,156 crore in Q4 FY25, from ?18,232 crore in Q4 FY24. Much of this growth was led by the Individual Home Loan segment, whose disbursements grew 8% year-on-year to ?15,383 crore. Project loan disbursements, on the other hand, showed a decrease, falling 42% year-on-year to ?875 crore.

Asset Quality

Asset quality of the company seems to have increased, as the Stage 3 exposure at default has stood at 2.47% as of March 31, 2025. That is a decline from 3.31% as at March 31, 2024, as well as a drop from 2.75% as at December 31, 2024.

Share Performance

LIC Housing Finance shares closed at ?624.95 on 15 May 2025, on NSE. The stock has given returns of 2.26% in the last 6 months but a negative return of -0.96% in the last 12 months. The stock is currently trading at ?616.05, with a decline of 1.42%.

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