GIC Housing Finance Limited (GICHFL) has reported a net profit of ₹735.00 lakh for the first quarter of fiscal year 2026, despite a significant increase in provisions. The company's financial results for the quarter ended June 30, 2025, reveal both challenges and strategic adjustments in its operations.

Financial Performance

GICHFL's total income for Q1 FY2026 stood at ₹26,543.00 lakh, compared to ₹27,718.00 lakh in the same quarter of the previous year. The company's interest income slightly increased to ₹26,239.00 lakh from ₹25,772.00 lakh year-over-year.

Increased Provisions Impact Profitability

A notable aspect of the quarter's performance was the substantial increase in impairment of financial instruments, including write-offs. This figure jumped to ₹7,797.00 lakh in Q1 FY2026 from ₹2,384.00 lakh in Q1 FY2025. The company attributed this increase to a modification in its Expected Credit Loss (ECL) calculation method, resulting in an additional provision of ₹5,416.00 lakh.

Asset Quality and Reclassification

GICHFL's gross Stage 3 assets ratio increased to 4.74% as of June 30, 2025, compared to 3.03% at the end of the previous quarter. This rise was partly due to the reclassification of repossessed properties from "Assets Held for Sale" to "Loans at amortized cost." Consequently, assets amounting to ₹16,889.00 lakh were included in Loans at amortized cost, leading to a one-time increase in ECL provisioning of ₹2,731.00 lakh during the quarter.

Balance Sheet Strength

Despite the increased provisions, GICHFL maintained a strong balance sheet. The company's net worth stood at ₹1,97,193.00 lakh as of June 30, 2025, up from ₹1,96,441.00 lakh at the end of the previous quarter. The debt-to-equity ratio improved slightly to 4.40 times from 4.44 times over the same period.

Liquidity Position

The company's liquidity position remains robust. As per the structural liquidity statement, GICHFL maintained positive cumulative mismatches across various time buckets, indicating its ability to meet short-term obligations comfortably.

Management Commentary

Sachindra Salvi, Managing Director & CEO of GIC Housing Finance, stated, "While the increased provisions have impacted our quarterly profits, these measures strengthen our balance sheet and position us better for future growth. Our focus remains on maintaining asset quality while pursuing prudent expansion opportunities."

Future Outlook

Despite the challenges posed by increased provisions, GICHFL's management remains optimistic about the company's prospects. The company continues to focus on its core business of providing loans for purchase or construction of residential houses, with an emphasis on maintaining asset quality and exploring growth opportunities in the housing finance sector.

Investors and stakeholders will be keenly watching how GICHFL navigates the current financial landscape and whether the increased provisioning translates into improved asset quality in the coming quarters.

GIC Housing Finance Limited (GICHFL) has announced a significant change to its Board of Directors, appointing Shri Dinesh Waghela as an Additional Director in a non-executive and independent capacity. The appointment, effective from September 23, 2025, is subject to shareholder approval.

Appointment Details

The Board of Directors of GICHFL approved Waghela's appointment during a meeting held on September 19, 2025. The company disclosed this information in compliance with Regulation 30 & 51 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Dinesh Waghela's Profile

Shri Dinesh Waghela brings a wealth of experience to GICHFL:

• Over 35 years of experience in insurance and reinsurance sectors
• Holds degrees in Commerce and Law
• Associate Member of the Insurance Institute of India
• Began his career with GIC Re in 1985
• Held key roles across various departments including Management, Compliances, Finance, Reinsurance, Investments, and HR

Notable Positions Held

Throughout his career, Waghela has held several prominent positions:

• General Manager and joint charge as CMD at The Oriental Insurance Co. Ltd.
• Chief Financial Officer (CFO) at The New India Assurance Company
• CFO at The Oriental Insurance Company

Regulatory Compliance

GICHFL has confirmed that Shri Dinesh Waghela (DIN 08072065) has not been debarred from holding the office of Director by any order issued by SEBI or any other authority. The company also stated that there are no inter-se relationships between Waghela and other directors on the board.

This appointment aligns with GICHFL's commitment to maintaining a strong and diverse board with extensive industry experience. Shareholders will have the opportunity to approve this appointment, potentially bringing valuable insights to the company's strategic direction and governance.