Non-banking financial company L&T Finance Ltd on Friday (April 24) reported a 26.79% year-on-year increase in net profit at ₹806.63 crore for the fourth quarter, compared with ₹636.2 crore in the same period last year.
Net interest income (NII) rose 24.8% to ₹3,024 crore from ₹2,423.2 crore a year ago. Return on assets (RoA) improved to 2.40% from 2.22% a year ago, while return on equity (RoE) rose to 11.71% from 10.13% in Q4FY25.
Retail disbursements for the quarter grew 62% year-on-year to ₹24,107 crore from ₹14,899 crore, marking the highest-ever quarterly retail disbursement. Growth was led by secured segments, including two-wheeler finance at ₹2,930 crore (up 58%), gold finance at ₹2,779 crore, personal loans at ₹3,786 crore (up 98%), and rural business finance at ₹7,208 crore (up 41% year-on-year and 7% sequentially).
Also Read: L&T Finance retail disbursements jump 62% YoY to ₹24,080 crore in Q4
Net interest margin plus fees improved 6 basis points sequentially to 10.47% in Q4FY26 from 10.41% in Q3FY26. Credit cost declined to 2.64% from 2.83% quarter-on-quarter. Gross Stage 3 (GS3) improved to 2.88% from 3.29% a year earlier, while Net Stage 3 stood at 0.96% versus 0.97% last year.
The company reported the lowest-ever quarterly weighted average cost of borrowing at 7.17%, down 67 basis points year-on-year, supported by a diversified liability profile. For FY26, WACB stood at 7.35%, down 48 basis points.
FY26
For FY26, consolidated net profit stood at ₹3,003 crore (before labour code impact), while retail book grew 26% year-on-year to ₹1,19,508 crore and consolidated book increased 25% to ₹1,21,728 crore. Annual retail disbursements rose 39% to ₹83,213 crore, supported by demand across product segments.
Credit cost for FY26 stood at 2.54% after utilisation of macro-prudential provisions. RoA for the year was 2.39%, while RoE stood at 11.33%, compared with 10.87% in FY25.
Also Read: L&T Finance leans on AI to cut risk and costs as loan book expands
The company also expanded its gold finance network, adding 200 branches since June 2025 to reach 330 branches by Q4FY26. Personal loans scaled up through big tech partnerships, contributing 38% of Q4FY26 disbursements compared with 22% in Q4FY25.
The Board of Directors recommended a final dividend of ₹2.75 per equity share of face value ₹10 for FY26. The dividend, if approved at the upcoming Annual General Meeting, will be credited within 30 days from the date of the AGM.
The board also approved entry into the business of pre-paid instruments, including wallets and cards, and for the company to act as a third-party application provider, subject to regulatory and statutory approvals, including from the Reserve Bank of India and the National Payments Corporation of India.
It further approved fund-raising through issuance of non-convertible debentures, including foreign currency bonds, sub-debt, masala bonds and perpetual debt, from time to time in one or more tranches. The total outstanding NCDs will not exceed ₹1,23,500 crore at any point, within approved borrowing limits.
Additionally, the company approved issuance of cumulative compulsorily redeemable non-convertible preference shares in FY2026–27 of up to ₹6,012 crore, subject to shareholder approval at the forthcoming AGM.
Shares of L&T Finance Ltd ended at ₹290.55, down by ₹1.55, or 0.53%, on the BSE.