LIC Housing Finance (LICHF IN) – Q4FY26 Result Update – Growth levers in place; Margins hinge on rate trajectory – HOLD
Published on 14 May 2026
While Q4 disbursements picked up (+9.7% YoY), higher repayments resulted in muted loan book growth of 4.4% YoY to Rs3,161.7 bn. We expect AUM growth recovering to 10%/9% in FY27/28E (from low base of FY26), supported by higher retail disbursals, higher third-party sourcing/ co-lending, a dedicated affordable housing vertical, and ~200 new frontline hires. We expect CoF to inch up in FY27, with NIM moderating by 6/18bps in FY27/28E; possibility of a repo-rate hike likely to exert some pressure. Headline asset quality saw an improvement, and we build a credit cost of ~17/20bps over FY27/28E. We slightly tweak FY27/ FY28E estimates factoring in pick-up in growth amid rate hike possibility. We maintain the multiple of 0.7x on Mar-28E P/ABV, resulting in TP of Rs 575. Retain ‘Hold’.
