lic housing finance has appointed Varsha Hardasani as the Company Secretary of its subsidiary, LICHFL Care Homes Limited, with effect from August 1, 2026. The appointment serves as an additional charge for Hardasani, who is nominated by the Board of LIC Housing Finance Limited. This structural adjustment ensures continued compliance oversight within the group’s healthcare vertical without requiring a separate external hire.

The Board of LICHFL Care Homes Limited approved the appointment based on the nomination from the parent company’s Board. The move aligns with standard corporate governance practices for managing shared services across group entities. The filing was submitted to both the National Stock Exchange of India Ltd. and BSE Limited to inform market participants of the change in key managerial personnel at the subsidiary level.

Regulatory Framework

The appointment adheres to specific statutory requirements under Indian corporate law. Key regulatory references include:

• Section 203 of the Companies Act, 2013
• Rule 8 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
• Other applicable provisions governing managerial personnel appointments

These regulations mandate that the appointment of a Company Secretary must follow due process, including board approval and compliance with eligibility criteria defined in the rules. The designation as an "additional charge" indicates that Hardasani retains her primary responsibilities while overseeing compliance for the subsidiary.

Appointment Details

The following table outlines the specifics of the new appointment:

Hardasani, who serves as the Company Secretary and Compliance Officer for LIC Housing Finance Limited, will now also handle the statutory duties for LICHFL Care Homes Limited. This dual role allows for integrated compliance management across the two entities.

What This Means for Stakeholders

The appointment does not alter the operational strategy or financial structure of LICHFL Care Homes Limited. Instead, it reinforces the governance framework by ensuring that a qualified professional manages statutory filings and regulatory communications for the subsidiary. Shareholders and investors are advised that this is an administrative change aimed at streamlining corporate governance rather than a strategic shift in business operations. The continuity in leadership helps maintain stability in compliance reporting for the group’s healthcare segment.

LIC Housing Finance reported a 9.4% year-on-year increase in net profit after tax (PAT) to ₹1,488.32 crore for the first quarter ended June 30, 2026, compared to ₹1,359.92 crore in the same period a year ago. The growth was primarily driven by improved asset quality metrics and a significant reduction in credit loss provisions, which offset a slight contraction in revenue from operations. Total loan disbursements surged 14.5% to ₹15,014 crore, signaling robust demand across both individual and project lending segments. The Board of Directors approved the standalone audited results on July 30, 2026, alongside an investor presentation detailing the company's financial health and strategic outlook. In its post-results concall, management outlined key targets including a NIM goal of 2.6% for FY27, a 15% business growth ambition for the July–September period, and a developer loan target of ₹4,000 crore by FY27 with potential to reach ₹7,000–₹8,000 crore.

Under IndAS 109, the company continues to report asset classification and provisioning changes on an Expected Credit Loss (ECL) basis. The total ECL provision decreased to ₹4,398 crore as of June 30, 2026, from ₹5,051 crore a year earlier, reflecting a more favorable credit risk outlook.

Financial Performance Highlights

Revenue from operations contracted slightly by 1% to ₹7,062.45 crore from ₹7,169.32 crore in Q1FY26. Net Interest Income (NII) remained resilient, rising 0.5% to ₹2,075.52 crore against ₹2,064.71 crore in the corresponding period of the previous year. Profit Before Tax (PBT) grew 11% to ₹1,888.43 crore. The following table summarizes the key financial metrics for the quarter:

The Net Interest Margin (NIM) narrowed to 2.58% from 2.68% in Q1FY26, indicating margin pressure amidst competitive lending rates. Management has set a NIM goal of 2.6% for FY27, signaling confidence in margin recovery. The total outstanding loan portfolio grew 4% to ₹322,098 crore from ₹309,587 crore as of June 30, 2025.

Disbursement and Portfolio Growth

Total disbursements reached ₹15,014 crore, up 14.5% from ₹13,116 crore in Q1FY26, underscoring the company's strong loan growth trajectory. The growth was broad-based across segments:

• Individual Home Loans: Disbursements rose 8% to ₹12,119 crore from ₹11,247 crore.
• Non-Housing Individual Loans: Grew 20% to ₹1,975 crore from ₹1,647 crore.
• Project Loans: Surged 459% to ₹872 crore from ₹156 crore, marking a significant acceleration in developer financing.

The Individual Home Loan portfolio stood at ₹271,979 crore, up 4% from ₹262,411 crore a year ago. The Project Loan portfolio expanded 8% to ₹9,687 crore from ₹8,950 crore.

Management Guidance and Strategic Targets

In its concall update, management outlined key targets and guidance parameters. Notably, LIC Housing Finance expects to meet its credit cost goal of 10–15 basis points for FY27. Despite Q2 disbursements growing 14.5% year-on-year, the company has maintained its FY27 disbursement growth guidance at 10–12%, while overall loan growth remains around 15%. On developer financing, the company has set a goal to reach ₹4,000 crore in developer loans by FY27, with the potential to scale this up to ₹7,000–₹8,000 crore. The following table captures the key guidance parameters shared by management:

Asset Quality Trends

Credit risk indicators showed improvement during the quarter. Stage 3 Exposure at Default declined to 2.14% as of June 30, 2026, from 2.62% in the previous year. This reduction in high-risk exposure contributed to lower provisioning requirements under the ECL framework. The Provision Coverage Ratio (PCR) for Stage 3 assets stood at 48%.

What the Numbers Show

The divergence between flat revenue growth and double-digit profit growth suggests operational efficiency gains and favorable mix shifts rather than pure volume-driven top-line expansion. The 459% spike in project loan disbursements, combined with management's target to grow developer loans to ₹4,000 crore—and potentially ₹7,000–₹8,000 crore—indicates a deliberate strategic push into developer financing, which typically carries higher yields. Management's decision to maintain FY27 disbursement growth guidance at 10–12% despite Q2 disbursements already growing 14.5% year-on-year, alongside an expectation to meet the 10–15 basis points credit cost goal, reflects a measured and disciplined approach to growth. The simultaneous decline in NIM and improvement in PAT highlights that cost management and reduced credit costs are currently offsetting margin compression.