LIC Housing Finance profit rises +11.65% YoY on lower expenses
Sequential margin eased 0.13 percentage points as expenses grew faster than revenue; the consolidated results were filed after market close.
Filed 30 Oct 2026, 20:43 IST · after market close · LIC Housing Finance Ltd (LICHSGFIN)
Key takeaways
- Consolidated net profit rose +11.65% YoY as expenses fell -50.48%, lifting operating margin by 3.17 percentage points.
- Sequentially, revenue grew +1.58% while expenses grew +6.18%, trimming operating margin by 0.13 percentage points.
- Other income contributed only 0.05% of pre-tax profit, while management said H1FY27 online loan approvals were Rs 1,794 cr.
Price around the results
Lower expenses drove the YoY profit increase
In consolidated Q2FY27, revenue was nearly flat YoY, rising +0.21%, but expenses fell -50.48%. That lifted operating profit by +3.60% and expanded operating margin by 3.17 percentage points. Interest increased +0.57% and the tax rate rose 0.76 percentage points, leaving net profit growth at +11.65%.
Q2 margin gave back part of the Q1 improvement
Sequential revenue grew +1.58%, but expenses grew faster at +6.18%, narrowing operating margin by 0.13 percentage points. Interest also rose +1.54%, while pre-tax profit increased only +0.99% and net profit rose +0.50%. Other income was just 0.05% of pre-tax profit, so it did not materially support reported profit.
Margin remains well above the Financial Services peer median
Operating margin has stayed above 93% across the reported quarters and reached 97.03% in Q1FY27 before easing to 96.90% in Q2FY27. The current margin is 39.6 percentage points above the 57.30% median for the 66 Financial Services peers that have reported the same quarter. This quarter therefore marks a small sequential retreat, not a return to the lower margin range seen through FY26.
Management reported Rs 1,794 cr of online approvals in H1FY27
Management said online loan approvals during H1FY27 were Rs 1,794 cr. The disclosure provides a business-activity marker alongside the quarter's +0.21% YoY revenue growth.
No current-session market reaction yet
The consolidated results were filed at 20:43 IST after market close, so there is no current reaction to assess. After the eight recent results in the history, the stock moved down on six occasions, with a median absolute move of 3.65%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹7,194 cr | ₹7,083 cr | +1.58% | +0.21% |
| Other income | ₹1 cr | ₹5 cr | -80.31% | +87.04% |
| Expenses | ₹223 cr | ₹210 cr | +6.18% | -50.48% |
| Operating profit | ₹6,971 cr | ₹6,873 cr | +1.44% | +3.60% |
| Operating margin (%) | 96.90% | 97.03% | — | — |
| Interest | ₹5,023 cr | ₹4,946 cr | +1.54% | +0.57% |
| Depreciation | ₹29 cr | ₹30 cr | -2.26% | -8.85% |
| Profit before tax | ₹1,920 cr | ₹1,901 cr | +0.99% | +12.74% |
| Tax | ₹413 cr | ₹402 cr | +2.80% | +16.90% |
| Net profit | ₹1,507 cr | ₹1,499 cr | +0.50% | +11.65% |
| EPS (₹) | ₹27.39 | ₹27.25 | +0.51% | +11.66% |
Operating margin of 96.90% compares with a Financial Services sector median of 57.30% across 66 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Online loan approvals during H1FY27 were Rs.1794 Cr.
What to watch
- Whether operating margin holds above 96.90% after the 0.13-percentage-point sequential decline.
- Whether expense growth moderates from +6.18% QoQ while revenue growth remains at +1.58%.
- Whether the tax rate moves from 21.53% and changes the gap between pre-tax profit and net profit growth.