L&T Finance Q3 PAT Jumps 21% to ₹760 Cr; Retail Disbursements Up 49%

Mumbai: L&T Finance Ltd. (LTF) reported its strongest-ever quarterly performance in Q3FY26, posting a record core Profit After Tax (PAT) of ₹760 crore, marking a 21% year-on-year growth. After accounting for a one-time provision of ₹29 crore related to the New Labour Code, reported PAT stood at ₹739 crore, up 18% YoY.

The non-banking financial company (NBFC) also achieved its highest-ever retail disbursements at ₹22,701 crore during the quarter ended December 31, 2025, registering a robust 49% YoY growth. LTF’s retail portfolio expanded 21% YoY to ₹1,11,990 crore, while the consolidated loan book grew 20% YoY to ₹1,14,285 crore, underlining the company’s continued focus on retailisation, which now stands at 98% of the total book.

Margin expansion and asset quality improvement

LTF reported a sequential improvement of 19 basis points in Net Interest Margins plus fees (NIMs+Fees), which rose to 10.41% in Q3FY26, driven by stable yields and efficient liability management. The company also achieved its lowest-ever quarterly weighted average cost of borrowing at 7.25%.

Asset quality continued to strengthen, with Gross Stage 3 (GS3) assets improving by 10 bps sequentially to 3.19% and Net Stage 3 (NS3) declining to 0.92%. Credit cost (before macro provisions) reduced to 2.83% from 2.98% in the previous quarter. Notably, the company did not utilise any macro-prudential provisions during the quarter.

Return on Assets (RoA) stood at 2.31% (2.37% before exceptional items), while Return on Equity (RoE) improved to 11.38% before exceptional items.

Strong momentum across retail segments

LTF witnessed all-time high disbursements in key segments such as Two-Wheeler Finance and Farmer Finance, supported by GST 2.0 implementation, favourable monsoons and festive demand. Two-Wheeler Finance disbursements rose 33% YoY to ₹3,217 crore, while Farmer Finance disbursements grew 12% YoY to ₹2,783 crore.

Personal Loans emerged as a key growth driver, with disbursements surging 118% YoY to ₹3,574 crore and the book size expanding 64% YoY to ₹12,810 crore. SME Finance and Housing Loans also posted healthy growth, while the Gold Loan business continued to scale up following its recent launch.

Management commentary

Commenting on the results, Sudipta Roy, Managing Director & CEO, L&T Finance Ltd., said the quarter benefited from strong macro tailwinds including GST 2.0, good monsoons and repo rate cuts, which boosted consumption. He added that the company remains focused on building a “risk-first, tech-first, multi-product retail financier,” supported by AI-driven credit, underwriting and portfolio management platforms such as Project Cyclops, Project Nostradamus and Project Helios.

Digital, ESG and CSR focus

LTF’s PLANET app crossed 2.20 crore downloads, sourcing loans worth over ₹24,100 crore and collections exceeding ₹7,700 crore as of December 31, 2025. On the ESG front, the company achieved a 47% green energy mix, financed over 43,000 electric vehicles, and received the ICSI Award for Business Responsibility & Sustainability. CSR initiatives continued to focus on digital and financial inclusion, disaster relief and community development.

With strong profitability, improving asset quality and accelerating retail growth, L&T Finance said it remains on track to achieve its Lakshya 2026 strategic goals and strengthen its position as a leading retail-focused NBFC in India.