Financial Services · NSE: LICHSGFIN
LIC Housing Finance
Q2 FY27 earnings call · Guided by management
Call held 2 Nov 2026 · Read the filing on NSEFiling
- M.Cap
- ₹31,849Cr
- P/E
- 5.4×
- 1Y return
- +1.08%
- From 52W high
- −3.2%
Highlights are read by AI from the company's filing and can contain mistakes. Check the source page linked to each line.
Share price
Results Q2 FY27, as filed · consolidated · ₹ Cr
| Q2 FY27 | Q2 FY26 | YoY | Q1 FY27 | QoQ | |
|---|---|---|---|---|---|
| Revenue | 7,194 | 7,179 | +0.2% | 7,083 | +1.6% |
| PBTProfit before tax | 1,919 | 1,703 | +12.7% | 1,899 | +1.1% |
| Net profit | 1,506 | 1,349 | +11.7% | 1,499 | +0.5% |
| EPS (₹) | 27.39 | 24.53 | +11.7% | 27.25 | +0.5% |
From the company's own results filing on NSE. Net profit is the owners' share. Growth and the dotted lines are worked out from the filed figures.
Guidance
Current-year projections expected to be held, possibly exceeded
Sandeep Kumar · Managing Director and Chief Executive Officer · p. 4
Current-year projections expected to be held, possibly exceeded
“I'm confident the projections given by us for the current year, we will hold them. We may be surpassing them.”
More figures from the call
“We are targeting around double-digit growth, even around 15% growth we are targeting for this year.”
“And I'm very confident that whatever guidance that we have given, that is around 7 to 10 basis points up from the present that will -- we will be able to maintain it.”
“So probably impact of repricing of my borrowing -- bank borrowings, it would be around 10 bps by end of the year.”
In short
- 01NIM guided at 2.5% to 2.6% for the year; Q2 FY27 NIM was 2.58%.
- 02Disbursement growth guided at about 12% to 14% for the year; CFO also said about 15% is targeted.
- 03AUM growth target stated as 8% to 10%; loan book grew 5% year on year to Rs 3,26,173 crore.
- 04Credit cost expected at about 8 to 10 bps by year-end; Q2 credit cost was negative 3 bps.
- 05Lending rate (LHPLR) raised by 25 bps from 31 October 2026 on existing and new loans.
- 06Bank borrowing cost expected to rise by about 10 bps by year-end after repricing.
- 07Q2 PAT was Rs 1,508.78 crore, up about 11%; Stage 3 at 2.05%.
- 08Other ways to reward shareholders to be discussed at the next Board meeting.
Segments
Project loans: Project loan disbursement Rs 564 crore against Rs 378 crore, up 49%
Sandeep Kumar · Managing Director and Chief Executive Officer · p. 3
Project loans: Project loan disbursement Rs 564 crore against Rs 378 crore, up 49%
“Disbursement in project loans were INR564 crores as against INR378 crores for the same period during the previous year, up by 49%.”
marketing subsidiary: Marketing subsidiary business rising around 25% to 30% a quarter
Sandeep Kumar · Managing Director and Chief Executive Officer · p. 4
marketing subsidiary: Marketing subsidiary business rising around 25% to 30% a quarter
“They are also increasing, say, around 25% to 30% on a quarterly basis.”
self-employed: Focus moving towards self-employed customers for higher margins
Sandeep Kumar · Managing Director and Chief Executive Officer · p. 4
self-employed: Focus moving towards self-employed customers for higher margins
“Our now focus is moving towards self-employed category get more margins. At the same time, we are focusing on project side also.”
non-housing individual: LAP and LRD yield about 150 to 200 bps above individual housing loans
Lokesh Mundhra · Chief Financial Officer · Q&A · p. 11
non-housing individual: LAP and LRD yield about 150 to 200 bps above individual housing loans
“Actually that segment is giving better yield and the difference would be around 150 to 200 bps if you compare with the yield loan IHL portfolio.”
self-employed: Self-employed yield around 9.15% against 7.40% for salaried
Sandeep Kumar · Managing Director and Chief Executive Officer · Q&A · p. 11
self-employed: Self-employed yield around 9.15% against 7.40% for salaried
“and that is why we are focusing on the self-employed where the yield comes to around 9.15% as against 7.40% we normally pass on to the salaried class.”
Demand
Housing demand in September quarter described as broadly resilient
Sandeep Kumar · Managing Director and Chief Executive Officer · p. 2
Housing demand in September quarter described as broadly resilient
“Housing demand in the September quarter remained broadly resilient. The underlying demand for the homeownership continues to be supported by urbanization.”
Festive season expected to support housing credit demand
Sandeep Kumar · Managing Director and Chief Executive Officer · p. 2
Festive season expected to support housing credit demand
“Looking ahead, the festive season and the sustained domestic economic activity around should further support housing credit demand.”
Banks already passed on rate rise; little impact on sales expected
Sandeep Kumar · Managing Director and Chief Executive Officer · p. 8
Banks already passed on rate rise; little impact on sales expected
“Since banks have already increased that passed on to the customer, I think it is not going to much impact on our sales, first thing.”
Most housing growth seen coming from Tier 2, Tier 3 and Tier 4 cities
Sandeep Kumar · Managing Director and Chief Executive Officer · Q&A · p. 14
Most housing growth seen coming from Tier 2, Tier 3 and Tier 4 cities
“And where I find the maximum growth in the housing today is coming from the traction in the Tier 2, Tier 3 and Tier 4 cities.”
Margins and costs
LHPLR raised by 25 bps on existing and new loans from 31 October 2026
Sandeep Kumar · Managing Director and Chief Executive Officer · p. 2
LHPLR raised by 25 bps on existing and new loans from 31 October 2026
“As a result, the company also increased its benchmark lending rate, LHPLR on the existing portfolio as well as on the new business by 25 basis points with effect from 31st of October 2026.”
Rate rise applies to 1/3 of portfolio from 1 November, 2/3 from 1 January 2027
Sandeep Kumar · Managing Director and Chief Executive Officer · p. 8
Rate rise applies to 1/3 of portfolio from 1 November, 2/3 from 1 January 2027
“Second thing is on portfolio side, at least 1/3 of our portfolio, I think the rates will increase from 1st of November. Whereas for 2/3 of our portfolio, it will be effective from 1st of January 2027.”
CFO: 1/3 of book reprices quarterly, 2/3 from 1st of the next month
Lokesh Mundhra · Chief Financial Officer · p. 10
CFO: 1/3 of book reprices quarterly, 2/3 from 1st of the next month
“My reset clause as per my loan agreements, almost 1/3 book is repriced on a quarterly basis, and 2/3 book is repriced immediately from 1st of the next month.”
Lending rate rise expected to show in margin from Q3 and Q4
Lokesh Mundhra · Chief Financial Officer · p. 10
Lending rate rise expected to show in margin from Q3 and Q4
“So -- and if market is absorbing that lending rate, so definitely, we are increasing our prime lending rate, and it will be reflecting in our margin in Q3 and Q4 onwards.”
Starting lending rate moved from 7.15% to 7.40%
Lokesh Mundhra · Chief Financial Officer · p. 10
Starting lending rate moved from 7.15% to 7.40%
“So earlier, we were starting at 7.15%. So now we are starting at 7.40% onwards.”
Debt and working capital
Cumulative cost of funds 7.29%; Q2 incremental cost 6.91% against 7.06% in Q1
Sandeep Kumar · Managing Director and Chief Executive Officer · p. 3
Cumulative cost of funds 7.29%; Q2 incremental cost 6.91% against 7.06% in Q1
“On the borrowing side, our cumulative cost of funds stood at 7.29% as on 30th September 2026 compared to 7.42% as on 30th September '25 and 7.28% as on 31st of March 2026, reflecting an improvement of 13 basis points on a year-to-year basis, whereas the incremental cost of funds for Q2 FY27 stood at 6.91% as against 7.06% in Q1 FY27.”
Capital adequacy ratio 25.48% against 15% required
Lokesh Mundhra · Chief Financial Officer · Q&A · p. 16
Capital adequacy ratio 25.48% against 15% required
“So my capital adequacy ratio is far above the required of 15%. That is 25.48%.”
Cumulative cost of bank borrowing at 6.93% as on date
Lokesh Mundhra · Chief Financial Officer · p. 12
Cumulative cost of bank borrowing at 6.93% as on date
“So that bank borrowing is giving comfort. My cumulative borrowing cost on banks borrowing is 6.93% as on date.”
About 82% of money borrowed from banks last year
Lokesh Mundhra · Chief Financial Officer · p. 12
About 82% of money borrowed from banks last year
“And last year, as a strategy, we have borrowed almost 82% money from banks only.”
NHB borrowing up to about Rs 25,000 crore at 6.91% average cost
Lokesh Mundhra · Chief Financial Officer · Q&A · p. 13
NHB borrowing up to about Rs 25,000 crore at 6.91% average cost
“So it has gone up to almost INR25,000 crores. So my average borrowing cost from NHB is 6.91%.”
Acquisitions and new business
Direct assignment policy expected to be approved; pool purchases planned in Q3 and Q4
Lokesh Mundhra · Chief Financial Officer · Q&A · p. 9
Direct assignment policy expected to be approved; pool purchases planned in Q3 and Q4
“So I think we'll get it approved in the next Board meeting. And probably in Q3 and Q4, we'll definitely in the market for a pool purchase or direct assignments.”
Dividends and buybacks
Other ways to reward shareholders to be discussed at next Board meeting
Lokesh Mundhra · Chief Financial Officer · Q&A · p. 16
Other ways to reward shareholders to be discussed at next Board meeting
“Other things, what you are saying, how to reward my shareholders, definitely, we'll discuss all other options available in the next Board meeting.”
Dividend of 500%, Rs 10 per share on face value of Rs 2
Lokesh Mundhra · Chief Financial Officer · Q&A · p. 9
Dividend of 500%, Rs 10 per share on face value of Rs 2
“so this time, we have given 500% dividend, that is INR10 per share, having face value of INR2.”
If the Board approves, a better dividend or other options may be offered
Lokesh Mundhra · Chief Financial Officer · Q&A · p. 16
If the Board approves, a better dividend or other options may be offered
“If Board approves, definitely we will come out with a nice, you can say, dividend, either dividend should be better or we'll offer some other options.”
Management
Sandeep Kumar joined as COO in May 2026, became MD and CEO on 29 August 2026
Sandeep Kumar · Managing Director and Chief Executive Officer · p. 2
Sandeep Kumar joined as COO in May 2026, became MD and CEO on 29 August 2026
“I joined the company as COO in May 2026 and taken over charge as MD and CEO on 29th of August 2026.”
Risks
Interest rates expected to stay elevated for longer
Sandeep Kumar · Managing Director and Chief Executive Officer · p. 2
Interest rates expected to stay elevated for longer
“uncertainty around the globe interest rate trajectory have strengthened market expectations that RBI may maintain a higher monetary policy stance with the interest rates likely to remain elevated for longer.”
project and non-housing corporate: Stage 3 in project and non-housing corporate loans at Rs 2,720 crore
Lokesh Mundhra · Chief Financial Officer · Q&A · p. 7
project and non-housing corporate: Stage 3 in project and non-housing corporate loans at Rs 2,720 crore
“So Stage 3 under this project and non-housing corporate is INR2,720 crores, okay?”
Criminal complaint filed with CBI against Subhash Chandra, guarantor on 2 NPA loans
Sandeep Kumar · Managing Director and Chief Executive Officer · Q&A · p. 7
Criminal complaint filed with CBI against Subhash Chandra, guarantor on 2 NPA loans
“Now we have filed a criminal suit against Mr. Subhash Chandra, a complaint has been filed in CBI against Mr. Subhash Chandra, who is a guarantor under those 2 loans.”
Subhash Chandra group: one loan 100% and one 75% provided; outstanding about Rs 1,365 crore
Lokesh Mundhra · Chief Financial Officer · Q&A · p. 17
Subhash Chandra group: one loan 100% and one 75% provided; outstanding about Rs 1,365 crore
“One loan account is 100% provided and second one is, I think, 75% we already provided. And the total outstanding amount, it is around INR1,365 crores, including interest and other things.”
Two South Mumbai properties said to cover the Subhash Chandra group dues
Lokesh Mundhra · Chief Financial Officer · Q&A · p. 17
Two South Mumbai properties said to cover the Subhash Chandra group dues
“We have two good properties in the South Mumbai and the value of those two properties is quite sufficient to recover my outstanding dues, right now.”
Other
Loan portfolio at Rs 3,26,173 crore on 30 September 2026, up 5%
Sandeep Kumar · Managing Director and Chief Executive Officer · p. 3
Loan portfolio at Rs 3,26,173 crore on 30 September 2026, up 5%
“portfolio stood at around INR3,26,173 crores as on 30th September 2026 as against INR3,11,816 crores as on 30th September 2025, reflecting a growth of 5%.”
Q2 disbursement Rs 18,127 crore against Rs 16,313 crore, up 11%
Sandeep Kumar · Managing Director and Chief Executive Officer · p. 3
Q2 disbursement Rs 18,127 crore against Rs 16,313 crore, up 11%
“Total disbursement for the quarter were INR18,127 crores against INR16,313 crores for the corresponding period in Q2 FY 26 by 11%.”
Q2 FY27 NIM 2.58%, against 2.62% in Q2 FY26 and 2.58% in Q1 FY27
Sandeep Kumar · Managing Director and Chief Executive Officer · p. 3
Q2 FY27 NIM 2.58%, against 2.62% in Q2 FY26 and 2.58% in Q1 FY27
“Net interest margin for Q2 FY27 stood at 2.58% as against 2.62% for Q2 FY26 and 2.58% for Q1 FY27.”
Q2 PAT Rs 1,508.78 crore against Rs 1,353.87 crore, up about 11%
Sandeep Kumar · Managing Director and Chief Executive Officer · p. 3
Q2 PAT Rs 1,508.78 crore against Rs 1,353.87 crore, up about 11%
“Profit after tax for the quarter stood at INR1,508.78 crores as against INR1,353.87 crores for the same period showing a growth of around 11%.”
Stage 3 at 2.05% on 30 September 2026 against 2.51% a year earlier
Sandeep Kumar · Managing Director and Chief Executive Officer · p. 3
Stage 3 at 2.05% on 30 September 2026 against 2.51% a year earlier
“In terms of asset quality, Stage 3 exposure at default as on 30th September 2026 stood at 2.05% as against 2.51% as on September 30, 2025.”
Sources
- Earnings call transcript, Q2 FY27 Filed 6 Nov 2026 · 18 pages
Management's own statements, quoted from its NSE filings. This page was read by AI and can contain mistakes: check the source pages before relying on any figure. No forecast or opinion of ours. Not investment advice.