L&T FINANCE HOLDINGS LTD.
P&L
Quarterly Consolidated
vs Q4 FY25
L&T Finance Ltd. Records Q1FY26 Profit After Tax of Rs. 701 Crore, Up 10% QoQ and 2% YoY
18 Jul 2025 · 18 Jul 2025, 08:43 pm
Summary
L&T Finance Ltd. (LTF) records consolidated Profit After Tax (PAT) of Rs. 701 Crore for Q1FY26, up 10% QoQ and 2% YoY. The company achieved its highest-ever consolidated book of Rs. 1,02,314 Crore, which includes a retail book of Rs. 99,816 Crore, up 15% and 18% YoY respectively. Q1FY26 Retail Disbursements at Rs. 17,522 Crore, up 18% YoY. The quarter witnessed successful integration of the acquired Gold Loan portfolio and roll out of ‘Project Cyclops’ in SME Finance.
Key Highlights
- 1
Retailisation at 98% exceeding Lakshya 2026 target
- 2
Retail Book at Rs. 99,816 Crore vs. Rs. 84,444 Crore, registering a growth of 18% YoY
- 3
Gross Stage 3 (GS3) at 3.31% and Net Stage 3 (NS3) at 0.99%
- 4
Consol. Credit Cost at 2.23% vs. 2.37% in Q1FY25 after utilising additional macro-prudential provision of Rs. 300 Crore in Q1FY26 in Rural Business Finance
- 5
Return on Assets (ROA) stood at 2.37% vs. 2.22% in Q4FY25 and 2.68% in Q1FY25
- 6
Healthy growth in quarterly retail disbursements at Rs. 17,522 Crore vs. Rs. 14,839 Crore, up 18% YoY
- 7
Reduction in the quarterly Weighted Average Cost of Borrowing (WACB) by 16 basis points (bps) Quarter-on-Quarter (QoQ) to 7.68% in Q1FY26
- 8
Gross Stage 3 (GS3) stood at 3.31% in Q1FY26 vs. 3.29% in Q4FY25 vs. 3.14% in Q1FY25
- 9
Net Stage 3 (NS3) stood at 0.99% in QIFY26 vs. 0.97% in Q4FY25 vs. 0.79% in QIFY25
- 10
PAT at Rs. 701 Crore vs. Rs. 636 Crore, up 10% QoQ, and Rs. 686 Crore, up 2% YoY
- 11
Consol. book size at Rs. 1,02,314 Crore vs. Rs. 88,717 Crore, up 15% YoY
- 12
Net Interest Margin + Fees at 10.22% vs. 10.15% in Q4FY25 and 11.08% in Q1FY25
- 13
Consol. Return on Equity (RoE) stood at 10.86% vs 10.13% in Q4FY25 and 11.58% in Q1FY25
- 14
Debut Investment Grade Credit Rating assigned to L&T Finance Limited (LTF) by International Ratin Agencies (S&P Global Ratings and Fitch Ratings)
- 15
Robust Retail Franchise with granular and deep pan-India Retail franchise led by its strong distribution capabilities
- 16
Building a diversified retail franchise: Rural Business Finance, Farmer Finance, Two-wheeler Finance, Personal Loans, Home Loans & LAP, Business Loans, and Gold Loans
Management Comments
Mr. Sudipta Roy
In a challenging quarter, our Company remained focused on outcomes and achieved a resilient performance while showcasing our ability to manage market headwinds. This performance is on the back of our commitment to sourcing creditworthy customers backed by technology and robust credit guardrails, while keeping a strong focus on collection efficiency across businesses. Our impetus remains on risk calibrated business growth with a sharp focus on a strong asset quality, laying the foundation for a sustainable and predictable growth going forward. We achieved the highest-ever consolidated book of over Rs. 1 Lakh Crore milestone and added a secured high yield product to our loan portfolio i.e., Gold Loan. Our company has been assigned a debut investment grade credit rating of “BBB-/Positive” by S&P Global Ratings and “BBB- /Stable” by Fitch Ratings. This rating will serve as a foundation for further diversifying our liability franchise by accessing financing opportunities across the global capital markets. Our Al-driven next- gen digital credit engine, ‘Project Cyclops’ is starting to yield early dividends in our Two-wheeler finance business, and during the quarter, ‘Project Cyclops’ was scaled up in Farm business and launched in the SME finance business. We remain focused on continuously strengthening our risk and credit frameworks, which will serve us well in times to come.
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