GIC Housing Finance FY26 Net Profit Falls 4% to ₹154 Cr; Loan Book Grows 7%
GIC Housing Finance reported a 4% decline in FY26 net profit to ₹154 crore, with total income marginally lower at ₹1,083 crore. The loan portfolio grew 7% to ₹11,235 crore, supported by 32% growth in sanctions and 29% rise in disbursements, though Gross NPA increased to 3.96%. The company holds top-tier credit ratings of AA+ Stable from both ICRA and CRISIL across its long-term instruments.
*this image is generated using AI for illustrative purposes only.
GIC Housing Finance has released its financial highlights for the year ended March 31, 2026. The company reported a net profit of ₹154 crore, a decrease of 4% compared to ₹160 crore in the previous year. Total income for the fiscal year stood at ₹1,083 crore, marginally lower than the ₹1,089 crore recorded in FY25. Profit before tax stood at ₹159 crore, down 23% year-on-year, partly due to the absence of an exceptional item of ₹13 crore that had boosted FY25 earnings.
Financial Performance Overview
The table below summarises the key income statement metrics for the year ended March 31, 2026:
| Metric: | FY26 (₹ in Cr) | FY25 (₹ in Cr) | Change (%) |
|---|---|---|---|
| Interest Income: | 1,063 | 1,049 | 1 |
| Fees & Commission Income: | 5 | 5 | — |
| Other Income: | 15 | 35 | (57) |
| Total Income: | 1,083 | 1,089 | (1) |
| Interest Expenses: | 687 | 703 | (2) |
| Staff Expenses: | 83 | 70 | 19 |
| Other Expenses & Depn.: | 85 | 80 | 6 |
| Provision for NPA and others: | 69 | 17 | 306 |
| Total Expenses: | 924 | 870 | 6 |
| Profit before Exceptional Items & Tax: | 159 | 219 | (27) |
| Exceptional Item: | 0 | 13 | (100) |
| Profit Before Tax: | 159 | 206 | (23) |
| Provision for Tax & DTA/DTL: | 4 | 46 | (91) |
| Net Profit: | 154 | 160 | (4) |
Operational Metrics and Asset Quality
The company's loan portfolio grew to ₹11,235 crore as of March 31, 2026, up 7% from ₹10,497 crore in the prior year. Sanctions increased by 32% to ₹2,527 crore, while disbursements rose 29% to ₹2,299 crore. The borrowing portfolio stood at ₹9,050 crore, up 4% from ₹8,727 crore. However, asset quality saw some stress, with Gross NPA rising to ₹445 crore (3.96%) from ₹318 crore (3.03%) a year ago. Net NPA portfolio improved to ₹177 crore (1.61%) from ₹203 crore (1.96%) in the previous year.
| Parameter: | FY26 | FY25 | Change (%) |
|---|---|---|---|
| Loan Portfolio Gross (₹ Cr): | 11,235 | 10,497 | 7 |
| Borrowing Portfolio (₹ Cr): | 9,050 | 8,727 | 4 |
| Gross NPA (₹ Cr): | 445 | 318 | 40 |
| Gross NPA (%): | 3.96 | 3.03 | 31 |
| Net NPA Portfolio (₹ Cr): | 177 | 203 | (13) |
| Net NPA to Net Advances (%): | 1.61 | 1.96 | (18) |
Key Ratios and Capital Adequacy
The Earnings Per Share (EPS) for the year declined to ₹28.69 from ₹29.74 in the previous year. The Net Interest Margin (NIM) improved to 3.41% from 3.28%. The company's networth stood at ₹2,106 crore, reflecting a 7% increase, with a book value per share of ₹391.01 compared to ₹364.78. The cost to income ratio rose to 59.93% from 43.14%, primarily due to higher NPA provisions; excluding NPA provisions, the ratio stood at 42.64% versus 38.86% previously. Return on networth declined to 7.34% from 8.14%, while return on total assets stood at 1.37% compared to 1.48%.
| Ratio: | FY26 | FY25 | Change (%) |
|---|---|---|---|
| EPS (₹): | 28.69 | 29.74 | (4) |
| NIM (%): | 3.41 | 3.28 | 4 |
| Cost to Income Ratio (%): | 59.93 | 43.14 | 39 |
| Cost to Income (ex-NPA provision) (%): | 42.64 | 38.86 | 10 |
| Yield on Advances (%): | 9.65 | 9.95 | (3) |
| Cost of Borrowed Funds (%): | 7.84 | 8.22 | (5) |
| Debt Equity Ratio (Times): | 4.30 | 4.44 | (3) |
| Return on Networth (%): | 7.34 | 8.14 | (10) |
| Return on Total Assets (%): | 1.37 | 1.48 | (7) |
| Price Earning Ratio: | 4.58 | 5.64 | (19) |
| Book Value of Share (₹): | 391.01 | 364.78 | 7 |
| Net Profit Margin (%): | 14.26 | 14.71 | (3) |
Credit Ratings
GIC Housing Finance continues to hold strong credit ratings from both ICRA and CRISIL, reflecting confidence in its long-term financial stability. The ratings are detailed below:
| Instrument: | ICRA Rating | CRISIL Rating |
|---|---|---|
| Short Term Loan of ₹1,000 Cr: | [ICRA] A1+ | CRISIL A1+ |
| Commercial Paper of ₹1,500 Cr: | [ICRA] A1+ | CRISIL A1+ |
| Long Term Loan (ICRA ₹9,000 Cr / CRISIL ₹8,100 Cr): | [ICRA] AA+(Stable) | CRISIL AA+ Stable |
| Non Convertible Debentures of ₹1,530 Cr: | [ICRA] AA+(Stable) | CRISIL AA+ Stable |
Historical Stock Returns for GIC Housing Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.09% | +0.17% | -3.02% | -13.49% | -19.13% | +20.40% |
Given the 306% surge in NPA provisions and Gross NPA rising to 3.96%, what specific loan segments or borrower categories are driving the asset quality deterioration, and can GIC Housing Finance realistically contain Gross NPA below 4% in FY27?
With sanctions growing 32% and disbursements up 29% despite a stagnant total income, how will GIC Housing Finance manage the potential pressure on spreads if the RBI maintains an accommodative rate cycle that compresses lending yields further?
As staff expenses jumped 19% year-on-year, is GIC Housing Finance investing in technology or expanding its distribution network, and how might this operational scaling impact its cost-to-income ratio over the next two to three years?
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