In the retail disbursements sector, Urban Finance contributed ₹10,760 crore, up from ₹6,851 crore a year prior. Rural Business Finance reported ₹6,960 crore, an increase from ₹5,619 crore, while Farmer Finance rose to ₹2,450 crore from ₹2,200 crore.
SME Finance disbursements grew to ₹1,560 crore from ₹1,273 crore, and Gold Finance increased to ₹1,920 crore from ₹1,530 crore. The acquired portfolio reached ₹150 crore, in contrast to ₹49 crore during the same quarter last year. Overall, retail finance disbursements totaled ₹23,800 crore, up from ₹17,522 crore in the corresponding quarter of the previous year.
ALSO READ | L&T Finance retail disbursements surge 62% YoY to ₹24,080 crore in Q4
The company also projects its retail loan book at ₹1,27,450 crore, reflecting a 28% year-over-year growth from ₹99,816 crore in Q1 FY2025-26. The retailisation ratio remained steady at 98% for both Q1 FY2025-26 and Q1 FY2026-27. The company noted that these figures are provisional and estimated.
Fourth Quarter Results
L&T Finance Ltd reported a net profit increase of 26.79% year-on-year, amounting to ₹806.63 crore for the fourth quarter, compared to ₹636.2 crore in the same period last year. Net interest income (NII) grew by 24.8% to ₹3,024 crore, up from ₹2,423.2 crore in the previous year. Return on assets (RoA) improved to 2.40% from 2.22% a year earlier, while return on equity (RoE) rose to 11.71% from 10.13% in Q4FY25.
During the quarter, retail disbursements rose by 62% year-on-year to ₹24,107 crore from ₹14,899 crore, marking the highest quarterly retail disbursement recorded. The growth was driven by secured segments, with 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 Q3 retail disbursements up 49% YoY, loan book jumps 20%
Net interest margin plus fees experienced a sequential improvement of 6 basis points, reaching 10.47% in Q4FY26 from 10.41% in Q3FY26. The credit cost decreased to 2.64%, down from 2.83% quarter-on-quarter. Gross Stage 3 (GS3) decreased to 2.88% from 3.29% a year ago, and Net Stage 3 stood at 0.96% compared to 0.97% last year.
Shares of L&T Finance Ltd closed at ₹326.95, reflecting an increase of ₹11.75, or 3.73%, on the BSE.
(Edited by : Jomy Jos Pullokaran)
First Published: Jul 3, 2026 6:44 PM IST
