LIC Housing Finance Ltd

(a) Capital structure and liquidity are defined by a highly leveraged balance sheet typical of financial intermediaries. Total assets stand at INR 3,252.1 billion, funded by total liabilities of INR 2,837.8 billion and total equity of INR 414.3 billion. Long-term debt is substantial at INR 2,662.2 billion, resulting in a debt-to-equity ratio of 6.43. Operating cash flow is negative at INR -85.0 billion, while free cash flow is positive at INR 51.2 billion, driven by minimal capital expenditure of INR -0.5 billion. The risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt.

(b) Profitability metrics show a return on equity (ROE) of 13.53% and a return on assets (ROA) of 1.72%. The company generated revenue of INR 287.6 billion, with gross profit of INR 88.6 billion and operating income of INR 70.5 billion. Net income reached INR 56.0 billion. Without cohort median data provided in the input, direct comparative analysis against sector peers is omitted, but the absolute margins indicate a profitable operation within the financial services model.

Net income grew at a 25.1% CAGR over four years, demonstrating strong historical profitability expansion.

Analysts project 16.7% upside to the mean price target of 634.88, indicating positive market sentiment.

Free cash flow increased to 51.2 billion INR in FY26, showing improved cash generation capabilities.

Debt-to-equity ratio of 6.43 is in the bottom quartile, indicating excessive leverage compared to peers.

The company faces a high credit risk flag, suggesting potential vulnerabilities in its asset quality.

Cash conversion is in the bottom quartile at -1.52, indicating poor efficiency in turning profits into cash.

Return on invested capital is low at 2.3%, suggesting limited value creation relative to capital employed.

Revenue INR 71.99B, −1,2% YoY; Operating income +9,6% YoY.

• ▍Revenue INR 71.99B, −1,2% YoY
• ▍Operating income +9,6% YoY
• ▍Net income +8,7% YoY
• ▍Net margin 20.7%

Revenue INR 71.74B, +1,8% YoY; Operating income −3,1% YoY.

• ▍Revenue INR 71.74B, +1,8% YoY
• ▍Operating income −3,1% YoY
• ▍Net income −2,6% YoY
• ▍Net margin 19.5%

Revenue INR 71.62B, +3,4% YoY; Operating income +2,0% YoY.

• ▍Revenue INR 71.62B, +3,4% YoY
• ▍Operating income +2,0% YoY
• ▍Net income +1,6% YoY
• ▍Net margin 18.8%

Revenue INR 72.23B, +6,7% YoY; Operating income +4,4% YoY.

• ▍Revenue INR 72.23B, +6,7% YoY
• ▍Operating income +4,4% YoY
• ▍Net income +4,4% YoY
• ▍Net margin 18.9%

Revenue INR 72.84B; Operating income INR 17.59B.

• ▍Revenue INR 72.84B
• ▍Operating income INR 17.59B
• ▍Net margin 18.9%

Revenue INR 70.50B; Operating income INR 17.77B.

• ▍Revenue INR 70.50B
• ▍Operating income INR 17.77B
• ▍Net margin 20.4%

Revenue INR 69.26B; Operating income INR 16.52B.

• ▍Revenue INR 69.26B
• ▍Operating income INR 16.52B
• ▍Net margin 19.2%

Revenue INR 67.70B; Operating income INR 16.06B.

• ▍Revenue INR 67.70B
• ▍Operating income INR 16.06B
• ▍Net margin 19.3%

Revenue INR 287.57B, +2,3% YoY; Operating income −73,3% YoY.

• ▍Revenue INR 287.57B, +2,3% YoY
• ▍Operating income −73,3% YoY
• ▍Net income +3,0% YoY
• ▍Free cash flow +3,0% YoY
• ▍Net margin 19.5%

Revenue INR 281.00B, +3,4% YoY; Operating income +8,3% YoY.

• ▍Revenue INR 281.00B, +3,4% YoY
• ▍Operating income +8,3% YoY
• ▍Net income +14,3% YoY
• ▍Free cash flow +15,0% YoY
• ▍Net margin 19.4%

Revenue INR 271.90B, +20,1% YoY; Operating income +24,2% YoY.

• ▍Revenue INR 271.90B, +20,1% YoY
• ▍Operating income +24,2% YoY
• ▍Net income +64,6% YoY
• ▍Free cash flow +77,7% YoY
• ▍Net margin 17.5%

Revenue INR 226.39B, +13,4% YoY; Operating income +16,0% YoY.

• ▍Revenue INR 226.39B, +13,4% YoY
• ▍Operating income +16,0% YoY
• ▍Net income +26,5% YoY
• ▍Free cash flow +32,4% YoY
• ▍Net margin 12.8%