**LIC Housing Finance Q1 FY26: Profits Rise, Asset Quality Improves Despite Flat Revenue Growth**

LIC Housing Finance Ltd (LICHFL) reported a steady performance for the quarter ended June 30, 2025, with a modest rise in net profit and encouraging signs on asset quality. The company posted a standalone net profit of ₹1,359.92 crore, up 4.6% YoY, while revenue from operations increased to ₹7,233 crore, a 6.6% jump from ₹6,784 crore in Q1 FY25. Despite a largely stable topline, key financial metrics reflected improving efficiency. Gross NPAs declined to 2.62% from 3.29% YoY, while Net NPAs came down to 1.30%, indicating stronger credit discipline and provisioning. The Provision Coverage Ratio (PCR) stood at a healthy 50.92%. However, operating margin dipped slightly to 23.49% (from 24.01% YoY), reflecting rising costs, including finance costs and impairment charges. EPS for the quarter was ₹24.72. On the strategic front, the company approved shifting its registered office to Cuffe Parade, Mumbai, and fixed 22nd August 2025 as the record date for the proposed final dividend. The AGM is scheduled for 29th August 2025. Overall, LICHFL’s Q1 performance was stable—not spectacular—but reflected consistency and improving asset quality, key for long-term confidence in the housing finance major. *Disclaimer: Not a buy/sell recommendation.*