LIC Housing Finance , one of India's leading housing finance companies, has announced ambitious growth projections for its loan book, targeting an expansion to ₹3.5 lakh crore by the fiscal year 2027. This forecast underscores the company's confidence in the housing finance sector and its own growth trajectory.

Loan Book Growth and Asset Quality

The company expects its loan book growth to be primarily driven by a 6% annual increase in individual home loans. This steady growth in the core business segment reflects LIC Housing Finance's focus on the retail housing market.

Alongside this growth, LIC Housing Finance anticipates an improvement in its asset quality. The company projects its gross non-performing assets (GNPA) to decrease to 2.5% by FY27, indicating a strengthening of its loan portfolio quality.

Capital Adequacy and Financial Stability

LIC Housing Finance plans to maintain a robust capital adequacy ratio of 23%, well above regulatory requirements. This strong capital position is expected to provide the company with a solid foundation for sustainable growth and the ability to withstand potential market fluctuations.

Profitability and Margins

Despite projecting growth in its loan book, LIC Housing Finance acknowledges potential pressure on its net interest margin (NIM). The company anticipates its NIM to narrow to 2.6%. However, it expects to maintain stability in profits and margins, supported by its strong capital position.

Current Financial Performance

As of September 30, 2025, LIC Housing Finance reported the following key financial metrics:

These figures demonstrate the company's current strong financial position, providing a solid base for its projected growth.

Market Position and Future Outlook

LIC Housing Finance's projections reflect its optimism about the Indian housing finance sector. The company's focus on individual home loans, coupled with its efforts to improve asset quality, suggests a strategic approach to sustainable growth in a competitive market.

As the company moves towards its FY27 targets, investors and market observers will be keenly watching its ability to balance growth with profitability and asset quality in the evolving economic landscape.

LIC Housing Finance , a prominent player in India's housing finance sector, has announced its financial results for the second quarter, showcasing a slight improvement in both net profit and revenue.

Financial Performance

The company reported a marginal increase in its net profit for Q2, demonstrating resilience in a challenging economic environment. Here's a breakdown of the key financial metrics:

Key Highlights

• Net Profit Growth: LIC Housing Finance saw its net profit rise to ₹13.50 billion in the second quarter, up from ₹13.30 billion in the same period last year, representing a modest 1.5% increase.

• Revenue Expansion: The company's revenue for the quarter stood at ₹71.60 billion, marking a 3.3% growth compared to ₹69.30 billion in the corresponding quarter of the previous year.

Market Implications

The slight uptick in both net profit and revenue suggests that LIC Housing Finance is maintaining its market position despite potential headwinds in the housing finance sector. The company's ability to grow its revenue by 3.3% year-over-year may indicate resilient demand for housing loans or effective management of its loan portfolio.

While the profit growth of 1.5% is modest, it demonstrates the company's ability to maintain profitability in what could be a challenging market environment. Investors and market analysts may look for further details on the company's loan book quality, interest margins, and operational efficiency to gauge the sustainability of this performance in upcoming quarters.

As one of the key players in India's housing finance market, LIC Housing Finance's performance can offer insights into the broader trends in the real estate and housing loan sectors. Stakeholders will likely keep a close eye on how the company navigates market conditions and capitalizes on opportunities for growth in the coming months.