Net interest income (NII) increased by 24.8%, reaching ₹3,024 crore compared to ₹2,423.2 crore a year prior. The return on assets (RoA) improved to 2.40% from 2.22% last year, while the return on equity (RoE) escalated to 11.71% from 10.13% in Q4FY25.
Retail disbursements for the quarter jumped 62% year-on-year, amounting to ₹24,107 crore, up from ₹14,899 crore, marking a record high for quarterly retail disbursements. This 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).
Net interest margin plus fees rose by 6 basis points sequentially to 10.47% in Q4FY26, compared to 10.41% in Q3FY26. Credit costs fell to 2.64% from 2.83% quarter-on-quarter. Gross Stage 3 (GS3) improved to 2.88% from 3.29% a year prior, while Net Stage 3 stood at 0.96% versus 0.97% the previous year.
Also Read: L&T Finance retail disbursements jump 62% YoY to ₹24,080 crore in Q4
The company achieved its lowest quarterly weighted average cost of borrowing at 7.17%, decreasing by 67 basis points year-on-year, supported by a varied liability profile. For FY26, the WACB was at 7.35%, down 48 basis points.
FY26
For FY26, the consolidated net profit reached ₹3,003 crore (prior to labor code impact), while the retail book grew by 26% year-on-year to ₹1,19,508 crore, and the consolidated book increased by 25% to ₹1,21,728 crore. Total annual retail disbursements surged 39% to ₹83,213 crore, aided by demand across various product segments.
Credit costs for FY26 stood at 2.54% after the use of macro-prudential provisions. RoA for the year was 2.39%, while RoE was at 11.33%, compared to 10.87% in FY25.
The company also expanded its gold finance network by adding 200 branches since June 2025, reaching a total of 330 branches by Q4FY26. Personal loans saw significant growth through partnerships with big tech firms, comprising 38% of Q4FY26 disbursements compared to 22% in Q4FY25.
Retail lending portfolio
L&T Finance displayed robust growth across its retail lending sector in FY26, with retail disbursements rising 39% year-on-year to ₹83,213 crore from ₹60,040 crore in FY25. Rural Business Finance disbursements grew 24% year-on-year to ₹25,882 crore, with quarterly disbursements jumping 41% to ₹7,208 crore. The segment’s book size expanded by 17% year-on-year to ₹30,805 crore.
Also Read: L&T Finance leans on AI to cut risk and costs as loan book expands
Farmer Finance reported annual disbursements of ₹8,674 crore, reflecting a 9% year-on-year increase, with quarterly disbursements climbing 16% to ₹2,037 crore. The book size expanded by 12% to ₹16,970 crore. Two-wheeler finance disbursements rose by 16% year-on-year to ₹10,787 crore, with quarterly disbursements soaring 58% to ₹2,930 crore. The book size increased by 17% to ₹14,372 crore.
Personal loans exhibited remarkable growth, with annual disbursements doubling to ₹12,220 crore, marking a 100% year-on-year increase. Quarterly disbursements shot up by 98% to ₹3,786 crore, while the book size expanded by 70% to ₹14,666 crore. The segment benefited from tech partnerships, accounting for 38% of personal loan disbursements in Q4FY26 compared to 22% in Q4FY25.
Housing loans and loans against property (LAP) disbursements increased by 20% year-on-year to ₹11,507 crore, with quarterly disbursements rising 34% to ₹3,134 crore. The book size grew by 20% to ₹30,009 crore. SME finance disbursements were up 23% year-on-year to ₹6,130 crore, with quarterly disbursements rising 20% to ₹1,838 crore. The book size increased by 30% to ₹8,507 crore.
Gold finance saw annual disbursements of ₹6,700 crore, with the book size at ₹2,845 crore. The company enhanced its gold finance network to 330 branches, adding 200 branches since the acquisition in June 2025.
The Board of Directors proposed a final dividend of ₹2.75 per equity share of face value ₹10 for FY26. The dividend, upon approval at the forthcoming Annual General Meeting, will be credited within 30 days from the date of the AGM.
Also Read: L&T Finance steps up gold loan push, sees credit costs falling
The board also greenlit entry into pre-paid instrument territories, including wallets and cards, and for the company to function as a third-party application provider, pending regulatory and statutory approvals, including from the Reserve Bank of India and the National Payments Corporation of India.
Additionally, the board approved fundraising through issuing non-convertible debentures, including foreign currency bonds, sub-debt, masala bonds, and perpetual debt, from time to time across one or more tranches. The total outstanding NCDs will not exceed ₹1,23,500 crore at any time, within approved borrowing limits.
Furthermore, the company sanctioned the issuance of cumulative compulsorily redeemable non-convertible preference shares in FY2026–27 of up to ₹6,012 crore, subject to shareholder approval at the upcoming AGM.
Shares of L&T Finance Ltd closed at ₹290.55, down by ₹1.55, or 0.53%, on the BSE.
