L&T Finance Q1 Update: Retail disbursements jump 36%, retail book grows 28%

Non-bank lender L&T Finance Ltd on Friday (July 3) estimated retail disbursements at ₹23,800 crore for the quarter ended June 30, 2026, marking a 36% year-on-year increase, according to its business update.

Within retail disbursements, Urban Finance contributed ₹10,760 crore, compared with ₹6,851 crore a year earlier. Rural Business Finance stood at ₹6,960 crore versus ₹5,619 crore, while Farmer Finance rose to ₹2,450 crore from ₹2,200 crore.

SME Finance disbursements increased to ₹1,560 crore from ₹1,273 crore, while Gold Finance rose to ₹1,920 crore from ₹1,530 crore. The acquired portfolio stood at ₹150 crore compared with ₹49 crore in the year-ago period. Overall retail finance disbursements stood at ₹23,800 crore, up from ₹17,522 crore in the corresponding quarter last year.

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The company also estimated its retail loan book at ₹1,27,450 crore, up 28% year-on-year from ₹99,816 crore in Q1 FY2025-26. The retailisation ratio remained unchanged at 98% for both Q1 FY2025-26 and Q1 FY2026-27. The company said the figures are estimated and provisional.

Fourth Quarter Results

L&T Finance Ltd reported a 26.79% year-on-year increase in net profit at ₹806.63 crore for the fourth quarter, compared with ₹636.2 crore in the same period last year. Net interest income (NII) rose 24.8% to ₹3,024 crore from ₹2,423.2 crore a year ago. Return on assets (RoA) improved to 2.40% from 2.22% a year ago, while return on equity (RoE) rose to 11.71% from 10.13% in Q4FY25.

Retail disbursements for the quarter grew 62% year-on-year to ₹24,107 crore from ₹14,899 crore, marking the highest-ever quarterly retail disbursement. Growth was led by secured segments, including 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 improved 6 basis points sequentially to 10.47% in Q4FY26 from 10.41% in Q3FY26. Credit cost declined to 2.64% from 2.83% quarter-on-quarter. Gross Stage 3 (GS3) improved to 2.88% from 3.29% a year earlier, while Net Stage 3 stood at 0.96% versus 0.97% last year.

Shares of L&T Finance Ltd ended at ₹326.95, up by ₹11.75, or 3.73%, on the BSE.