LICHSGFIN Q4 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
₹7,194 Cr
verified against source
Revenue YoY
-1.2%
reported change
EBITDA
Pending
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
LIC Housing Finance reported Q4 FY26 PAT of INR 1,497.41 crore, up 9.46% YoY despite subdued revenue of INR 7,194 crore (down 1.2% YoY). The company navigated intense competitive pressure from banks offering lower rates linked to repo cuts, which impacted disbursement growth throughout FY26. NIM expanded sequentially to 2.80% in Q4 from 2.69% in Q3, though full-year NIM of 2.68% was within the 2.6%-2.8% guidance. Asset quality improved significantly with Stage 3 declining to 2.15% from 2.47% YoY. Management targets 10%-12% loan book growth for FY27 with disbursement budget of INR 78,000 crore, while pursuing diversification into LAP/LRD segments and launching an affordable housing vertical. Key risks include geopolitical uncertainty impacting rupee and energy costs, plus competition from banks in the core IHL segment. The company also disclosed a CEO succession following the untimely demise of the originally appointed successor.
Colored figures show movement against the previous available record.
Guidance to track
- Management targets double-digit growth, conditional on geopolitical stability. Budgeted disbursements of INR 73,000 Cr retail and INR 4,500 Cr project finance should drive 15% disbursement growth.
- Full-year NIM expected to compress from current 2.68% as competitive pressures persist. Q1 guidance is 2.6%-2.7% range.
- Below board's aspirational 2% target, factoring in margin pressure and higher DSA costs from new distribution channels.
- April already showed 20.87% YoY growth, exceeding Q1 guidance, driven by seasonal momentum and improved competitiveness.
Risks flagged
- West Asia crisis driving crude oil spikes and INR weakness. Management flagged potential for rate hikes if situation deteriorates, which could impact both funding costs and borrower sentiment in the IHL segment.
- CEO expressed concern about potential impact on key business centers (Bangalore, Chennai, Hyderabad, Gurgaon, Pune) that rely heavily on IT industry employment. These centers contribute significantly to the company's business.
- Banks with lower cost of funds (linked to repo rate) are aggressively pricing IHL loans. Management acknowledged difficulty competing with lenders. Spread compressed 12bps YoY to 1.94%.
- New initiatives including co-lending policy, aggregator partnerships (targeting INR 4,000-5,000 Cr), and affordable housing vertical (completely new segment) carry execution risks in a competitive environment.
Key quotes
- Given a choice between protecting margins and going for growth, I would prefer to protect my margins than really go helter-skelter for growth.
- The baby has not yet been born. We are first looking at getting the baby born and then seeing whether it is healthy or not, how it shapes up. Honestly, right now we have no targets in mind for the first year.
- We are competing with banks. My IHL portfolio is 82%. This is exactly the domain, I would say, the territory of banks. Competing with them on the rate front is proving to be very, very difficult on our part.
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