LIC Housing Finance (LICHF IN) – Q1FY27 Result Update – Disbursement picks up; growth/NIM pressure persists – HOLD
Published on 31 Jul 2026
While Q1 disbursements picked up (+14.5% YoY), higher repayments resulted in muted loan book growth of 4.0% YoY to Rs3,221 bn. AUM is guided to grow at 8-10% in FY27 aided by direct assignment/co-lending and affordable housing. We build an AUM growth of 8%/9% in FY27/28E. We expect yields to moderate in FY27, with NIM moderating by 9/13bps in FY27/28E to 2.6%/2.5%. Increase in high- yielding LAP/LRD likely to provide some cushion. Headline asset quality saw an improvement and we build a credit cost of ~5/12bps over FY27/28E. We tweak FY27/ FY28E estimates downward factoring in weaker growth and NIM compression expected over FY27/28E. We reduce the multiple to 0.6x (from 0.7x earlier) on Mar-28E P/ABV, resulting in TP of Rs 550. Retain ‘Hold’.
