L&T Finance

Strong performance

L&T Finance has recorded 27% jump in net profit to Rs 806.63 crore in the quarter ended March 2026 (Q4FY2026). The consolidated income from operations increased 18% to Rs 4424.03 crore for the quarter ended March 2026, while other income of the company jumped 25% to Rs 347.07 crore. The total income increased 18% to Rs 4771.10 crore for Q4FY2026.

Interest expenses rose 9% to Rs 1747.03 crore. Operating expenses increased 21% to Rs 1160.30 crore, allowing the operating profits to improve 27% at Rs 1863.77 crore. The cost-to-income ratio improved to 38.4% in Q4FY2026 from 39.6% in Q4FY2025.

Depreciation jumped 47% to Rs 60.35 crore, while provisions increased 18% to Rs 729.50 crore. Profit before tax surged 33% yoy basis at Rs 1073.92 crore. Effective tax rate increased to 24.7% in Q4FY2026 from 21.1% in Q4FY2025. Net Profit of the company, after share in profit of associates and non-controlling interest, improved 27% to Rs 806.63 crore for Q4FY2026.

Gross Stage 3 assets of the company have declined to 2.88% end March 2026 from 3.19% a quarter ago and 3.29% a year ago, while the Net State 3 assets rose to 0.96% from 0.92% a quarter ago and declined from 0.97% a year ago. The provision coverage ratio eased to 67.00% from 71.00% a year ago.

Book value per share of the company stood at Rs 111.73 per share at end March 2026. Adjusted book value (net of NNPA) per share of the company stood at Rs 107.13 per share at end March 2026.

Retailisation at 98% of overall book. Highest ever annual PAT (before effect of Labour Code considered in Q3FY26) at Rs 3,003 crore

Retail book stands at Rs 119508 crore, growth of 26% YoY. Consolidated book stands at Rs 121728 crore, growth of 25% YoY

Gained momentum in Gold Finance branches expansion, exiting Q4FY26 with 330 branches addition of 200 new branches since acquisition of the business in June 2025

The company has recorded highest ever annual Retail disbursements in FY26 at Rs 83213 crore against Rs 60040 crore in FY25, a growth of 39% YoY. The quarterly retail disbursements were highest in Q4FY26 at Rs 24107 crore against 14899 crore in Q4FY25, a growth of 62% YoY.

The weighted Average Cost of Borrowing (WACB) declined to 7.17% in Q4FY26, reduction of 67 bps yoy, driven by a diversified liability mix and prudent liability planning.

Maintained steady state credit cost at 2.54% (post utilisation of macro-prudential provisions in Q1 and Q2 FY26) in FY26. Credit cost for Q4FY26 stood at 2.64% against 2.83% in Q3FY26

Return on Assets (RoA) at 2.39% (before the impact of Labour Code) for FY26. Return on Equity (RoE) increased to 11.33% (before the impact of Labour Code) for FY26 from 10.87% in FY25.

Commenting on the financial results Sudipta Roy, Managing Director & CEO, LTF, said, ?FY26 has been a good year for us, despite significant headwinds in our microfinance business in the initial months of the year and the end of the year closing with geopolitical tensions. Through the course of the year, we remained steadfast in our approach?tightening credit and risk administration frameworks, strengthening collections infrastructure, accelerating our AI-led technology transformation and continuously focusing on growth across all our business lines. On the microfinance business, our focus was on navigating the cycle with prudence and our efforts have yielded results, with business parameters across both disbursements and collection efficiencies now reverting to near pre-crisis levels, giving us confidence that FY27 will be a stable and productive year for this segment.

FY26 also marks the successful completion of our Lakshya 26 strategic plan, achieving most of our stated objectives even amid volatility in the credit environment. This reflects the resilience of our diversified franchise, disciplined execution, and the strength of the digital and analytics capabilities that we built during the plan period. As we embark on our next five-year strategic roadmap, Lakshya 31, we are setting ourselves ambitious and measurable targets to drive consistent growth with improved profitability. While global geopolitical uncertainties persist, we remain confident that the solid foundation established during the Lakshya 26 period will enable us to deliver steady outcomes and create long-term value for all stakeholders and truly transform L&T Finance into a Risk-first, Technology-first, Multi-product Retail Financier of Choice.?

Business Highlights:

Robust Retail Franchise:

The Company?s granular and deep pan-India Retail franchise with geographic presence in around 2 Lakh villages and over 500 cities/towns from around 2,311 rural meeting centers/branches and 529 branches across urban centers. The Company has a portfolio mix of 60% Urban and 40% Rural. The Company continued its up-sell efforts in Rural Group Loans and MFI, to consolidate and expand the exclusive customer base.

Rural Business Finance:

Book size up 17% to Rs 30,805 crore against Rs 26,320 crore YoY. Annual disbursements for FY26 at Rs 25,882 crore against Rs 20,921 crore, up 24% YoY. Quarterly disbursements for Q4FY26 at Rs 7,208 crore against Rs 5,114 crore, up 41% YoY

Farmer Finance:

Book size up 12% to Rs 16,970 crore against Rs 15,219 crore YoY. Annual disbursements for FY26 at Rs 8,674 crore against Rs 7,935 crore, up 9% YoY. Quarterly disbursements for Q4FY26 at Rs 2,037 crore against Rs 1,755 crore, up 16% YoY

Two-wheeler Finance:

Book size up 17% to Rs 14,372 crore against Rs 12,321 crore YoY. Annual disbursements for FY26 at Rs 10,787 crore against Rs 9,285 crore, up 16% YoY. Quarterly disbursements for Q4FY26 at Rs 2,930 crore against Rs 1,857 crore, up 58% YoY.

Personal Loans:

Book size up 70% to Rs 14,666 crore against Rs 8,648 crore YoY. Annual disbursements for FY26 at Rs 12,220 crore against Rs 6,096 crore, up 100 % YoY. Quarterly disbursements for Q4FY26 at Rs 3,786 crore against Rs 1,915 crore, up 98 % YoY. Scaled up Personal Loans disbursements through Big Tech Partnerships, contributing 38% to the total personal loan disbursements in Q4FY26 against 22% in Q4FY25 (38% in FY26 against 10% in FY25).

Housing Loans and Loan Against Property (LAP):

Book size up 20% YoY to Rs 30,009 crore in Q4FY26 against Rs 24,929 crore in Q4FY25. Annual disbursements for FY26 at Rs 11,507 crore against Rs 9,582 crore, up 20 % YoY. Quarterly disbursements for Q4FY26 at Rs 3,134 crore against Rs 2,332 crore, up 34 % YoY.

SME Finance:

Book size up 30% YoY to Rs 8,507 crore in Q4FY26 against Rs 6,524 crore in Q4FY25. Annual disbursements for FY26 at Rs 6,130 crore against Rs 5,000 crore, up 23% YoY. Quarterly disbursements for Q4FY26 at Rs 1,838 crore against Rs 1,528 crore, up 20% YoY

Gold Finance:

Book size reached Rs 2,845 crore in Q4FY26. Annual Disbursements at Rs 6,700 crore in FY26. Gained momentum in Gold Finance branches expansion, exiting Q4FY26 with 330 branches addition of. 200 new branches since acquisition of the business in June 2025

Lakshya 2031: Accelerating Transformation, Delivering Sustainable Results

LTF?s vision is to become a Risk-first, Tech-first, multi-product retail financier of choice. The plan has been formulated through bottom-up granular business build, peer benchmarking, and LTF strengths. Through Lakshya 2031 Goals, the Company aims to balance resilient growth with consistent returns. The Company will be focusing on tech-enabled granular execution and work towards:

Book Growth: 20%+

Credit Cost: <2%

Return on Assets (RoA): 3% - 3.2%

Return on Equity (RoE): 16% - 18%

Financial Performance FY2026

L&T Finance has recorded 8% growth in net profit to Rs 2174.55 crore in year ended March 2026 (FY2026). The consolidated income from operations increased 12% to Rs 12191.98 crore for the year ended December 2023, while other income of the company declined 2% to Rs 984.90 crore. The total income increased 11% to Rs 13176.88 crore for FY2026. Interest expenses moved up 13% to Rs 4973.05 crore. Operating expenses increased 8% to Rs 3113.87 crore, allowing the operating profits to improve 10% at Rs 5089.96 crore. The cost-to-income ratio eased to 38.0% in FY2026 from 38.4% in FY2025. Depreciation jumped 53% to Rs 149.34 crore, while provisions rose 9% to Rs 2016.37 crore. Profit before tax increased 9% yoy basis at Rs 2924.25 crore. Effective tax rate increased to 25.7% in FY2026 from 25.3% in FY2025. Net Profit of the company, after share in profit of associates and non-controlling interest, improved 8% to Rs 2174.55 crore for FY2026.

L&T Finance: Consolidated Results
Particulars	2603 (3)	2503 (3)	Var %	2603 (12)	2503 (12)	Var %
Income from operations	4424.03	3749.88	18	16616.01	14663.29	13
Other Income	347.07	277.34	25	1301.02	1277.69	2
Total Income	4771.10	4027.22	18	17917.03	15940.98	12
Interest Expended	1747.03	1599.83	9	6720.08	5996.76	12
Operating Expense	1160.30	962.40	21	4243.22	3845.67	10
Operating Profits	1863.77	1464.99	27	6953.73	6098.55	14
Depreciation / Amortization	60.35	40.98	47	209.69	138.90	51
Provisions and Write-offs	729.50	618.49	18	2745.87	2468.39	11
PBT	1073.92	805.52	33	3998.17	3491.26	15
Tax Expense	264.76	169.68	56	1015.30	847.84	20
Net Profit for the period	809.16	635.84	27	2982.87	2643.42	13
Share in profit/(loss) of associate company	0.00	0.00	-	0.00	0.00	-
Profit attributable to non-controlling interest	2.53	-0.33	-867	1.69	-0.24	-804
PAT	806.63	636.17	27	2981.18	2643.66	13
EPS* (Rs)	12.9	10.2	?	11.9	10.6	?
Equity	2504.4	2494.9	?	2504.4	2494.9	?
Adj BV (Rs)	107.1	98.7	?	107.1	98.7	?
* EPS and Adj BV are calculated on diluted equity as given for each year after EO and relevant tax. Face Value: Rs 10, Figures in Rs crore
PL: Profit to Loss, LP: Loss to Profit
Source: Capitaline Corporate Database

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