LIC Housing Q1: consolidated PAT ₹1,499 Cr, up ~10% YoY — but a ₹164 Cr write-back does the lifting
PAT +9.9% YoY · revenue -2.31% · margins expanding
₹7,082.59 Cr
-2.31% YoY
₹1,499.03 Cr
+9.9% YoY
21.16%
+2.4pp YoY
₹27.25
LIC Housing Finance opened FY27 with consolidated net profit of ₹1,499.03 Cr, up 9.9% YoY (₹1,364 Cr) and broadly flat sequentially (+0.4% vs ₹1,492.62 Cr), on revenue from operations of ₹7,082.59 Cr that actually slipped ~2.3% YoY and ~1.8% QoQ. The headline profit growth is not a topline story — it is almost entirely a credit-cost story. Impairment on financial instruments swung to a ₹164.23 Cr WRITE-BACK this quarter from a ₹121.67 Cr charge a year ago, a ~₹286 Cr pre-tax tailwind. Strip that swing out and underlying PAT is roughly flat-to-slightly-negative YoY (~-5% adjusted), so the print reads "steady," not "strong," despite the optics.
Q1 FY-2027 vs prior quarters
The margin trajectory reflects the same mechanic: net profit margin expanded to ~21.2% (standalone 21.06%) from 18.81% a year ago, but the expansion sits on the provisioning line, not on net interest income — interest income was flat-to-lower at ₹7,033.56 Cr (consolidated) and finance costs eased to ₹4,946.35 Cr. The write-back is grounded in genuinely better asset quality: gross Stage-III (GNPA) improved to 2.14% from 2.62% a year ago and NNPA to 1.12%, with PCR at 48.12%. Debt-equity eased to 6.59x (from 7.37x) and net worth rose to ₹42,807.71 Cr.
The stock went into the print at ₹540.9, down 2.4% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 2 consecutive quarters.
Standalone tells the same story with a marginally softer bottom line — PAT ₹1,488.32 Cr, EPS ₹27.06 vs consolidated EPS ₹27.25 — the divergence (subsidiaries LICHFL Care Homes, Financial Services, AMC and Trustee plus associate LIC MF AMC) is immaterial, under ~1% at the PAT level, so the two do not tell different stories. Management gives no formal guidance and there is no prior concall on record; street consensus for the quarter is not publicly available. The quarter's corporate calendar — the Aug 21 record date and FY26 dividend, the 37th AGM on Aug 28, and Sandeep Kumar's appointment as COO — is procedural and unrelated to the print. The read into next quarter is whether the provisioning tailwind persists or reverses, because core lending revenue is not currently growing.
W1
Whether the ₹164 Cr provisioning write-back persists or reverses next quarter — it, not NII, drove the +10% print
W2
Interest income re-acceleration: ₹7,033.56 Cr was flat-to-lower YoY, so core topline needs to turn
W3
GNPA trajectory from 2.14% — further improvement sustains write-backs; any uptick removes the tailwind