L&T Finance Q2 Results: Profit rises on strong lending, retail book crosses ₹1 lakh crore

L&T Finance Ltd (LTF) on Wednesday reported a 6% rise in consolidated net profit for the quarter ended September 30, 2025, driven by robust growth in retail lending, improved asset quality, and continued traction in its digital strategy.

The company posted a net profit of ₹735 crore, up from ₹696 crore a year earlier and 5% higher sequentially.

Revenue for the quarter rose 8% year-on-year to ₹4,335 crore, while net interest income grew 10.3% to ₹2,403 crore.

The lender also reported its highest-ever quarterly retail disbursements at ₹18,883 crore, marking a 25% increase from the same period last year.

Retail loans now comprise 98% of the company’s book, which crossed the ₹1 lakh crore milestone for the first time, rising to ₹1,04,607 crore, up 18% year-on-year.

Asset quality remained stable with gross stage 3 loans at 3.29% and net stage 3 at 1.00%, while credit cost improved to 2.41% from 2.59% a year earlier.

The quarter also saw LTF’s international long-term issuer rating upgraded by S&P Global Ratings to “BBB/Stable” and a new partnership with Google Pay to expand personal loan origination. The company’s PLANET app surpassed two crore downloads, driving over ₹19,300 crore in loan disbursements and ₹6,400 crore in collections.

Managing Director and CEO Sudipta Roy said the company’s transformation initiatives under its Lakshya 2026 roadmap were gaining momentum, with digital investments and customer-centric strategies yielding results. He added that festive demand and favourable macro conditions were expected to drive continued growth in the second half of the fiscal year.

L&T Finance, a part of the Larsen & Toubro Group, aims to become a top-tier digitally enabled retail NBFC focused on financial inclusion and ESG-led growth.