L&T Finance’s Q4 profit jumps 27 percent to Rs. 807 crores

Non-bank lender L&T Finance on Friday reported a 27 percent rise in March quarter consolidated profit after tax (PAT) on the back of sharp rise in interest income and retail disbursements.

Net profit increased by 6 percent on sequential basis.

Its principal net interest in the reporting quarter rose to Rs. 4,424.03 crore which was Rs. 4,240.07 crore and in the year-ago period was Rs. 3,749.88 crores.

Sudipta Roy, Managing Director and Chief Executive Officer, L&T Finance said, “During the year, we remained steadfast in our approach, tightened the credit and risk administration framework, strengthened the collection infrastructure, accelerated our AI-led technology transformation and continued to focus on growth across all our business lines.”

In the microfinance business, the focus was on navigating the cycle with prudence and the efforts have yielded results, Roy said, with business parameters on distribution and collection efficiency now returning close to pre-crisis levels.

The company is confident that FY27 will be a stable and productive year for this segment.

According to its financial results, total income from operations increased to Rs 4,771.03 crore in Q4 FY26 compared to Rs 4,578.27 crore in Q3 FY26 and Rs 4,022.92 crore in Q4 FY25.

In the reporting quarter, retail disbursements grew 62 percent in Q4 FY26 to Rs. 24,107 crore which in Q4 of FY25 was Rs. 14,899 crores.

Two-wheeler finance led growth in secured distribution to Rs. 2,930 crore, showing a year-on-year growth of 58 percent.

Disbursement of personal loans increased by 98 percent to Rs. 3,786 crore, disbursement of rural business finance increased by 41 per cent to Rs. 7,208 crore, the investor presentation showed.

Its retail book grew 26 percent year-on-year to Rs. 1,19,508 crores and consolidated Rs. 1,21,728 crores.

By March 31, 2026, the company’s wholesale book has declined by 14 percent to Rs. 2,220 crore, which was Rs. 2,582 crores.

The company saw a 0.06 percent improvement in net interest margin (NIM) plus fees. It was 10.47 percent in Q4 FY26 compared to 10.41 percent in Q3 FY26.

Credit cost in the reporting quarter improved to 2.64 percent from 2.83 percent in the previous December quarter.

On the BSE, L&T Finance scrip fell 0.56 percent to Rs. closed at 290.45.