L&T Finance has recorded 6% growth in net profit to Rs 734.84 crore in the quarter ended September 2025 (Q2FY2026). The consolidated income from operations increased 10% to Rs 4037.41 crore for the quarter ended March 2025, while other income of the company declined 19% to Rs 298.38 crore. The total income increased 8% to Rs 4335.79 crore for Q2FY2026.

Interest expenses increased 11% to Rs 1634.29 crore. Operating expenses moved up 10% to Rs 1017.08 crore, allowing the operating profits to improve 4% at Rs 1684.42 crore. The cost-to-income ratio was higher at 37.6% in Q2FY2026 from 36.3% in Q2FY2025. Depreciation jumped 53% to Rs 50.95 crore, while provisions fell 1% to Rs 644.61 crore.

Profit before tax rose 5% yoy basis at Rs 988.86 crore. Effective tax rate eased to 25.7% in Q2FY2026 from 25.9% in Q2FY2025. Net Profit of the company, after share in profit of associates and non-controlling interest, improved 6% to Rs 734.84 crore for Q2FY2026.

Gross Stage 3 assets of the company have declined to 3.29% end March 2025 from 3.31% a quarter ago and rose slightly from 3.19% a year ago, while the Net State 3 assets have eased to 1.00% from 0.99% a quarter ago and remained nearly steady from 0.96% a year ago. The provision coverage ratio was steady at 70.00% from 71.00% a year ago.

Book value per share of the company stood at Rs 105.44 per share at end March 2025. Adjusted book value (net of NNPA) per share of the company stood at Rs 101.25 per share at end March 2025.

Retailisation stands at 98% with retail book rising 18% to Rs 104607 crore at end September 2025 from Rs 88975 crore at end September 2024

Credit Cost at 2.41% in Q2FY26 against 2.59% in Q2FY25. Return on Assets (RoA) stood at 2.41% in Q2FY26

The disbursements surged 25% to Rs 18883 crore against Rs 15092 crore, led by a strong uptick in disbursement volumes across all lines of business

Retail loan book increased 18% to Rs 104607 crore against Rs 88975 crore

Total book size at Rs 107096 crore against Rs 93015 crore in Q2FY25, up 15% YoY

Net Interest Margin + Fees at 10.22% against 10.86% in Q2FY25

Return on Equity (RoE) stood at 11.33% vs 11.65% in Q2FY25

Business Highlights:

The Company's granular and deep pan-India Retail franchise is led by its strong distribution capabilities namely, its geographic presence in around 2 Lakh villages from around 2213 rural meeting centers/branches and 345 branches across urban centers. This extensive geographic presence is also supported by over 13,500 distribution points built over a decade. The Company also leverages around 2.7 crore of its customer database to drive a credible cross-sell and up-sell franchise contributing 40% of the Company's repeat disbursements share in value and 51% in count during Q2FY26.

Rural Business Finance: Q2FY26 disbursements at Rs 6316 crore against Rs 5435 crore, up 16% YoY. Book size at Rs 27460 crore against Rs 26539 crore, up 3% YoY, driven by improved collection efficiency and sectoral trends

Farmer Finance: Q2FY26 disbursements at Rs 1654 crore against Rs 1782 crore, down 7% YoY. Book size at Rs 15943 crore against Rs 14488 crore, up 10% YoY

Two-wheeler Finance: Q2FY26 disbursements at Rs 2512 crore against Rs 2393 crore, up 5% YoY. Book size at Rs 13013 crore against Rs 12669 crore, up 3% YoY.

Personal Loans: Q2FY26 disbursements at Rs 2918 crore against Rs 1361 crore, up 114% YoY. Book size at Rs 10878 crore against Rs 7178 crore, up 52% YoY.

Housing Loans and Loan Against Property: Q2FY26 disbursements at Rs 2713 crore against Rs 2531 crore, up 7% YoY. Book size at Rs 27407 crore against Rs 21731 crore, up 26% YoY.

SME Finance: Q2FY26 disbursements at Rs 1468 crore against Rs 1244 crore, up 18% YoY. Book size at Rs7465 crore against Rs 5190 crore, up 44% YoY.

Gold Loan: Q2FY26 disbursements at Rs 983 crore. Book size at Rs 1475 crore

Next-gen technology initiatives: 'Project Cyclops' has been implemented in Two-wheeler Finance, Farm Equipment Finance, SME Finance. It will be rolled out in Personal Loans in Q3FY26, Home Loans and Rural Group Loans & MFI in FY27. The beta version of our AI driven real time automated portfolio monitoring engine 'Project Nostradamus' has been rolled out for the Two-wheeler business in August, 2025, a month ahead of the scheduled deployment date.

Sudipta Roy, Managing Director & CEO, LTF said, 'During the quarter, our focus remained firmly on execution and growth, enabling us to deliver a strong performance in a quarter traditionally considered a weak one in the BFSI industry. The performance highlights the improved momentum in all our lines of business, across rural and urban geographies, driven by the transformation initiatives carried over the last few quarters. Our investments in technology, talent, revamp and expansion of branch infrastructure, brand building and continued focus on customer centricity as a part of our 5-pillar execution strategy have started to yield early dividends for us.

Our Gold loans segment added to the loan portfolio in Q1FY26 gained significant momentum during this quarter. In line with our aspiration of becoming a leading Pan-India gold finance player in the country, we remain committed to continuously expand our geo-presence across the country through branch expansion. By the end of FY26, we plan to add around 200 new branches taking our gold distribution strength to around 330 gold loan branches.

In addition, the Company operationalized the beta rollout of 'Project Nostradamus', an AI driven automated real-time portfolio management engine in the Two-wheeler business in addition to scaling up the AI driven next-gen digital credit engine 'Project Cyclops' in the SME business. Our digital large partnerships continued to scale in Q2FY26 with Google Pay being the latest addition to our list of marquee big tech partners for origination of Personal Loans.

On the back of good monsoons and improving customer consumption sentiment, we are confident that this momentum will accelerate in H2FY26 on the back of festive demand fueled by GST 2.0 reforms.'

Financial Performance H1FY2026

L&T Finance has recorded 4% growth in net profit to Rs 1435.94 crore in the half year ended September 2025 (H1FY2026). The consolidated income from operations increased 12% to Rs 7951.91 crore, while other income of the company declined 8% to Rs 643.48 crore. The total income increased 10% to Rs 8595.39 crore for H1FY2026. Interest expenses increased 16% to Rs 3270.03 crore. Operating expenses increased 9% to Rs 2024.99 crore, allowing the operating profits to improve 6% at Rs 3300.37 crore. The cost-to-income ratio rose to 38.0% in H1FY2026 from 37.4% in H1FY2025. Depreciation jumped 48% to Rs 91.64 crore, while provisions rose 7% to Rs 1276.65 crore. Profit before tax moved up 4% yoy basis at Rs 1932.08 crore. Effective tax rate was steady at 25.7% in H1FY2026 from 25.8% in H1FY2025. Net Profit of the company, after share in profit of associates and non-controlling interest, improved 4% to Rs 1435.94 crore for H1FY2026.

L&T Finance: Consolidated Results
Particulars	2509 (3)	2409 (3)	Var %	2509 (6)	2409 (6)	Var %	2503 (12)	2403 (12)	Var %
Income from operations	4037.41	3654.41	10	7951.91	7107.03	12	14663.29	12913.93	14
Other Income	298.38	369.61	-19	643.48	701.60	-8	1277.69	1137.12	12
Total Income	4335.79	4024.02	8	8595.39	7808.63	10	15940.98	14051.05	13
Interest Expended	1634.29	1476.28	11	3270.03	2827.69	16	5996.76	5377.19	12
Operating Expense	1017.08	924.51	10	2024.99	1861.68	9	3845.67	3393.10	13
Operating Profits	1684.42	1623.23	4	3300.37	3119.26	6	6098.55	5280.76	15
Depreciation / Amortization	50.95	33.29	53	91.64	61.73	48	138.90	114.77	21
Provisions and Write-offs	644.61	650.37	-1	1276.65	1195.69	7	2468.39	2136.96	16
Profit before EO	988.86	939.57	5	1932.08	1861.84	4	3491.26	3029.03	15
Exceptional Item	0	0	-	0	0	-	0	0	-
PBT after EO	988.86	939.57	5	1932.08	1861.84	4	3491.26	3029.03	15
Tax Expense	253.98	242.89	5	496.36	479.91	3	847.84	711.90	19
Net Profit for the period	734.88	696.68	5	1435.72	1381.93	4	2643.42	2317.13	14
Share in profit/(loss) of associate company	0.00	0.00	-	0.00	0.00	-	0.00	0.00	-
Profit attributable to non-controlling interest	0.04	1.10	-96	-0.22	0.84	LP	-0.24	-2.97	-92
PAT	734.84	695.58	6	1435.94	1381.09	4	2643.66	2320.10	14
EPS* (Rs)	11.8	11.2	'	11.5	11.1	'	10.6	9.3	'
Equity	2499.9	2492.7	'	2499.9	2492.7	'	2494.9	2488.9	'
Adj BV (Rs)	101.3	93.9	'	101.3	93.9	'	98.7	91.5	'
* 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

'

Powered by Capital Market - Live News