Q1 Numbers Out, 500% Dividend Locked – LIC Housing Becomes A Hot Pick; Time To Build Fresh Positions?

LIC Housing Finance Ltd. is the largest housing finance company in India. The firm has the highest CRISIL & CARE rating, which indicates the best level of safety in terms of principal repayment and interest serviceability. Since LIC Housing Finance has set a record date for its next 500% dividend payment and has reported strong results for the quarter that ended on June 30th, the stock is anticipated to get more market attention today.

LIC Housing Finance Dividend Record Date

"The Board of Directors in its meeting dated 1st August, 2025 has fixed Friday, August 22, 2025 as the Record Date for the purpose of ascertaining the eligibility of members for payment of final dividend for F.Y. 202425. The final dividend, if approved by the members in the 36th AGM, will be paid to the eligible members within the stipulated period of 30 days from the date of AGM. Members may note that the Income Tax Act, 1961, as amended by the Finance Act, 2020, mandates that dividends paid or distributed by a company is taxable in the hands of members. The Company shall therefore be required to deduct tax at source ("TDS") at the time of making the payment of dividend. In order to enable the Company to determine the applicable IDS rate, members are requested to submit the relevant documents within Monday, 25th August, 2025," said LIC Housing Finance in a stock exchange filing.

At its meeting on May 15, 2025, the company's board of directors approved the proposal of a 500% dividend for the fiscal year 2024-2025, or Rs. 10 per equity share of Rs. 2/-each.

LIC Housing Finance Q1FY26 Results

The company's revenue from operations increased by 7% to Rs. 7233.13 crs from Rs. 6783.67 crs in Q1 FY2025. Compared to the same period last year, when it was Rs 1989.08 crs, Net Interest Income (NII) was Rs 2065.78 crs during the quarter under review. The quarter's Net Interest Margin (NIM) was 2.68 percent, compared to 2.76% in the first quarter of FY 2025. The quarter's profit before tax was Rs. 1699.16 crs, up 4% from Rs. 1628.43 crs in Q1 FY2025. In the first quarter of FY26, net profit after tax was Rs. 1359.92 crs, up 5% from Rs. 1300.21 crs in the same period the year before. In Q1 of FY2026, total disbursements were Rs. 13116 crs, up 2% from Rs. 12915 crs for the same period in FY 2025.

LIC Housing Finance Target Price

"LIC Housing Finance is range-bound, with support near ₹560 and resistance at ₹585. The stock needs a breakout above ₹585 to target ₹600-₹610. Momentum indicators are neutral, showing lack of directional strength. As long as ₹560 holds, the structure remains stable. A breach below ₹560 could invite weakness toward ₹545. Traders may watch for a move above ₹585 for fresh entries or accumulate on dips near ₹565 with a stop-loss at ₹555," commented Riyank Arora, technical analyst at Mehta Equities.

Disclaimer

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