L&T Finance Q4 Profit Climbs 27 Pc To ₹807 Cr

Non-bank lender L&T Finance on Friday reported a 27% rise in the March quarter's consolidated profit after tax (PAT) to ₹807 crore on sharp rise in interest income and retail disbursements.

On a sequential basis, net profit rose 6%.

Its core net interest increased to ₹4,424.03 crore in the reporting quarter from ₹4,240.07 crore a quarter ago and ₹3.749.88 crore in the year-ago period.

"Through the course of the year, we remained steadfast in our approach, tightening credit and risk administration frameworks, strengthening collections infrastructure, accelerating our AI-led technology transformation and continuously focusing on growth across all our business lines," Sudipta Roy, Managing Director and Chief Executive Officer at L&T Finance, said.

In the microfinance business, the focus was on navigating the cycle with prudence and the efforts have yielded results, Roy said, adding that business parameters across disbursements and collection efficiencies are now reverting to near pre-crisis levels.

The company is confident that FY27 will be a stable and productive year for this segment.

The total revenue from operations increased to ₹4,771.03 crore in Q4 FY26 compared to ₹4,578.27 crore in Q3 FY26 and ₹4,022.92 crore in Q4 FY25, according to its financial results.

In the reporting quarter, retail disbursements grew 62% to ₹24,107 crore in Q4 FY26 from ₹14,899 crore in Q4 FY25.

The growth in secured disbursements led by two-wheeler finance at ₹2,930 crore, a rise of 58% year-on-year.

Personal loan disbursements rose 98% to ₹3,786 crore, rural business finance disbursements increased 41% to ₹7,208 crore, investor presentation showed.

Its retail book rose 26% year-on-year to ₹1,19,508 crore, and consolidated stood at was ₹1,21,728 crore.

The wholesale book of the company declined 14% to ₹2,220 crore as of March 31, 2026, from ₹2,582 crore a year back.

The company has seen an improvement of 0.06% in net interest margins (NIM) plus fees. It stood at 10.47% in Q4 FY26 compared to 10.41% in Q3 FY26.

Credit costs improved in the reporting quarter at 2.64% from 2.83% in the preceding December quarter.

The L&T Finance scrip closed 0.56% down at ₹290.45 a piece on the BSE against a 1.29% correction on the benchmark.