In a session where market sentiment remained watchful, LIC Housing Finance share price came into focus after the housing finance major posted its Q2FY25 results, showing a steady performance despite rising funding costs and a volatile stock market today.
Market Performance
The broader market tone remained cautious on Wednesday as investors digested corporate earnings and awaited key macro cues. Against this backdrop, LIC Housing Finance reported its financials that reflected consistency in core business and improving asset quality — a positive signal amid sectoral headwinds.
Main News: Q2FY25 Results Snapshot
LIC Housing Finance, one of India’s leading mortgage lenders promoted by Life Insurance Corporation of India (LIC), reported a 2% rise in standalone net profit for the September quarter at ₹1,354 crore, up from ₹1,329 crore in the same period last year.
Total income for the quarter stood at ₹7,170 crore, compared to ₹6,932 crore in the previous year’s quarter — showing a steady year-on-year improvement in operational efficiency and loan portfolio quality.
Key Financial Highlights (Standalone):
- Net Profit: ₹1,354 crore (up 2% YoY)
- Total Income: ₹7,170 crore (vs ₹6,932 crore YoY)
- Interest Income: ₹7,034 crore (vs ₹6,853 crore YoY)
- Total Expenses: ₹5,465 crore (vs ₹5,267 crore YoY)
These figures indicate that the company’s top line expanded even as cost pressures remained, a sign of resilient lending performance and prudent financial management.
Company Details & Asset Quality
Beyond profit numbers, the company showed notable improvement in asset quality — a critical parameter for any lending institution.
- Gross NPAs (Non-Performing Assets): declined to 2.51% of gross loans as of September 2025, compared to 3.05% a year earlier.
- Net NPAs: improved to 1.19%, down from 1.57% in the corresponding quarter last year.
The fall in NPAs reflects a healthier loan book and improved borrower repayment trends. This continued focus on credit discipline helped the lender maintain stability amid changing interest rate cycles.
The company’s liquidity coverage ratio (LCR) stood at 185.86%, slightly lower than 197.18% at the end of September 2024 — still well above the regulatory requirement, showing strong liquidity buffers to meet near-term obligations.
Consolidated Performance
On a consolidated basis, LIC Housing Finance reported a 1.5% increase in net profit to ₹1,349 crore, compared with ₹1,328 crore in Q2FY24. The steady growth across both standalone and consolidated fronts underlines the company’s balanced performance amid a tightening rate environment.
Business Overview
LIC Housing Finance’s core business continues to revolve around providing loans for the purchase or construction of residential houses — a segment that remains a backbone of India’s credit market. With stable demand for housing and a gradual rise in disposable incomes, the company’s steady numbers mirror sustained confidence in the housing finance sector.
Summary
Despite a challenging macro backdrop, LIC Housing Finance delivered a stable Q2FY25 performance marked by:
- A 2% profit rise
- Improving asset quality
- Steady income growth
- Healthy liquidity coverage
These metrics indicate operational stability and prudent risk management, helping the company maintain investor confidence in a market that has been volatile in recent sessions.
As the LIC Housing Finance share price reacts to these Q2 results, traders and long-term investors alike are likely to keep the stock on their radar amid the evolving sentiment in the stock market today.
