LICHSGFIN Q1 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹7,233.14 Cr
verified against source
Revenue YoY
7%
reported change
EBITDA
Pending
latest reported figure
Source
screener in partial
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
LIC Housing Finance reported Q1 FY26 results with 7% YoY revenue growth to INR 7,233 crore and PAT growth of 4.6% to INR 1,360 crore. The NIM compressed to 2.68% from 2.76% YoY due to rate cuts passed to borrowers, though the cost of funds also declined to 7.50%, limiting margin erosion. Disbursements were muted at INR 13,116 crore (up only 1.5% YoY), attributed to delayed rate pass-through and seasonal personnel movements. Stage 3 NPA rose to 2.62% from 2.47% QoQ (INR 514 crore increase), mostly in retail, though year-on-year improvement from 3.30% is notable. Management maintained double-digit growth guidance but acknowledged trade-off between margins and growth amid intense PSU bank competition. July disbursements at INR 5,500 crore indicate momentum building, with festival season expected to drive acceleration in H2.
Colored figures show movement against the previous available record.
Guidance to track
- Management maintained double-digit growth guidance given at Q4 FY25, with expectation to reassess after Q2 performance based on festival season traction.
- Management confirmed NIM will remain within the guided range of 2.6%-2.8%, supported by declining cost of funds offsetting yield compression.
- Management reiterated full-year credit cost guidance of 9-15bps, expecting Q2 onwards improvement as recovery operations intensify and legal cases resolve.
- With ample liquidity from RBI's CRR cut, incremental borrowing cost expected to reduce from 6.97% by another 5-10bps over next three quarters.
Risks flagged
- CEO explicitly stated preference for margins over growth if faced with choice. PSU banks offering rates below 7.5% may constrain disbursement growth to 7-8% range rather than double-digit target.
- Stage 3 NPA increased by INR 514 crore in Q1, entirely in retail segment, attributed to seasonal collection efficiency issues. Whether this is truly seasonal or structural remains uncertain.
- Management acknowledged being 'slightly delayed' in passing rate cuts vs. repo-linked banks, resulting in loss of near-term disbursement momentum. Customers may have already moved to competitors.
- Monthly BT at 0.10% may appear manageable but represents INR 1,000 crore quarterly leaving the book. Rewrite facility at 8.75% and top-up loans may not fully stem attrition as competition intensifies.
Key quotes
- If at all it comes to choosing between growth and margins, I would choose margins.
- I think we were slightly delayed in lowering the rate. That was one of the reasons [for muted disbursement growth].
- Many big cases are in various stages of legal recourse and discussions and negotiation. Hopefully, looking forward, I think we could look forward to resolution of another two big cases which would considerably impact our credit costs.
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