LIC Housing Fin. Q1 FY27 Results (NSE: LICHSGFIN)
Signal: Earnings grew
The read
Q1FY27 PAT grew 8.7% YoY to ₹1,493 Cr despite NII declining 3.1% YoY, as lower provisions (down 16.3% YoY) and controlled cost growth offset NIM compression. AUM grew a healthy 10.5% YoY. GNPA ratio improved 73 bps YoY to 1.43%, but rose 5 bps sequentially, a cautionary tick. NIM contraction remains the key challenge given rising borrowing costs.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹7,212 Cr | -1.3% | +0.1% |
| EBIT | ₹0 Cr | N/A | |
| Net profit | ₹1,493 Cr | 8.7% | |
| EPS | ₹27.13 | 8.7% | |
| EBIT margin | 0 |
P&L walk
NII contracted 3.1% YoY to ₹1,854 Cr due to 28 bps NIM compression, as borrowing costs rose faster than yield; PAT grew 8.7% YoY driven by lower provisions (down 16.3% YoY) and controlled opex growth.
Key positives
- PAT grew 8.7% YoY to ₹1,493 Cr, driven by 16.3% decline in provisions.
- AUM grew 10.5% YoY to ₹2,73,901 Cr, indicating steady disbursement momentum.
- GNPA ratio improved 73 bps YoY to 1.43%.
- PCR improved 427 bps YoY to 44.0%.
- EPS of ₹27.13 (+8.7% YoY) fully tracks PAT growth with no dilution.
Key concerns
- NII declined 3.1% YoY to ₹1,854 Cr, NIM compressed 28 bps YoY to 2.63%.
- GNPA ratio edged up 5 bps sequentially to 1.43% — first sequential rise after several quarters of improvement.
- Cost-to-income ratio worsened 273 bps YoY to 20.8% as NII base shrank.
- Revenue declined 1.3% YoY — unusual for the growth profile.
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