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).
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.
Also Read: L&T Finance retail disbursements jump 62% YoY to ₹24,080 crore in Q4
The company reported the lowest-ever quarterly weighted average cost of borrowing at 7.17%, down 67 basis points year-on-year, supported by a diversified liability profile. For FY26, WACB stood at 7.35%, down 48 basis points.
FY26
For FY26, consolidated net profit stood at ₹3,003 crore (before labour code impact), while retail book grew 26% year-on-year to ₹1,19,508 crore and consolidated book increased 25% to ₹1,21,728 crore. Annual retail disbursements rose 39% to ₹83,213 crore, supported by demand across product segments.
Credit cost for FY26 stood at 2.54% after utilisation of macro-prudential provisions. RoA for the year was 2.39%, while RoE stood at 11.33%, compared with 10.87% in FY25.
The company also expanded its gold finance network, adding 200 branches since June 2025 to reach 330 branches by Q4FY26. Personal loans scaled up through big tech partnerships, contributing 38% of Q4FY26 disbursements compared with 22% in Q4FY25.
Retail lending portfolio
L&T Finance reported strong growth across its retail lending portfolio in FY26, with retail disbursements rising 39% year-on-year to ₹83,213 crore from ₹60,040 crore in FY25. Rural Business Finance disbursements increased 24% year-on-year to ₹25,882 crore, while quarterly disbursements rose 41% to ₹7,208 crore. The segment’s book size grew 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 recorded annual disbursements of ₹8,674 crore, up 9% year-on-year, with quarterly disbursements rising 16% to ₹2,037 crore. The book size increased 12% to ₹16,970 crore. Two-wheeler finance disbursements grew 16% year-on-year to ₹10,787 crore, while quarterly disbursements surged 58% to ₹2,930 crore. The book size rose 17% to ₹14,372 crore.
Personal loans showed sharp expansion, with annual disbursements doubling to ₹12,220 crore, up 100% year-on-year. Quarterly disbursements increased 98% to ₹3,786 crore, while the book size rose 70% to ₹14,666 crore. The segment was supported by big tech partnerships, contributing 38% of total personal loan disbursements in Q4FY26 compared with 22% in Q4FY25.
Housing loans and loan against property (LAP) disbursements grew 20% year-on-year to ₹11,507 crore, while quarterly disbursements rose 34% to ₹3,134 crore. The book size increased 20% to ₹30,009 crore. SME finance disbursements rose 23% year-on-year to ₹6,130 crore, with quarterly disbursements up 20% to ₹1,838 crore. The book size increased 30% to ₹8,507 crore.
Gold finance recorded annual disbursements of ₹6,700 crore, with the book size at ₹2,845 crore. The company expanded its gold finance network to 330 branches, adding 200 branches since the acquisition in June 2025.
The Board of Directors recommended a final dividend of ₹2.75 per equity share of face value ₹10 for FY26. The dividend, if approved at the upcoming 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 approved entry into the business of pre-paid instruments, including wallets and cards, and for the company to act as a third-party application provider, subject to regulatory and statutory approvals, including from the Reserve Bank of India and the National Payments Corporation of India.
It further approved fund-raising through issuance of non-convertible debentures, including foreign currency bonds, sub-debt, masala bonds and perpetual debt, from time to time in one or more tranches. The total outstanding NCDs will not exceed ₹1,23,500 crore at any point, within approved borrowing limits.
Additionally, the company approved issuance of cumulative compulsorily redeemable non-convertible preference shares in FY2026–27 of up to ₹6,012 crore, subject to shareholder approval at the forthcoming AGM.
Shares of L&T Finance Ltd ended at ₹290.55, down by ₹1.55, or 0.53%, on the BSE.
