L&T Backed Finance Company Announced Q4 FY26 Results: PAT Hits Rs 807 Crore, FY26 Profit at Rs 3,003 Crore, 39% per cent Disbursement Growth
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The stock price has surged over 223.35 per cent in last 3 years. The stock has delivered around 83.39 per cent returns from its 52-week low of Rs 158.20 per share.
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On Friday, shares of L&T Finance Ltd closed at Rs 290.05 per share, falling 0.71 per cent from its previous closing of Rs 292.12 per share. The stock’s 52-week high is Rs 329.45 per share and its 52-week low is Rs 158.20 per share. During the session, the stock surged about 0.99 per cent to its Intraday high of Rs 295.01.
L&T Finance Ltd (LTF) reported its highest ever consolidated annual Profit After Tax (PAT) of Rs 3,003 crore (before the effect of Labour Code considered in Q3FY26), marking a growth of 14 per cent year-on-year for FY26. The company also delivered a strong Q4FY26 performance with PAT at Rs 807 crore, up 27 per cent year-on-year.
The company continued to accelerate its transformation into an AI-enabled lender, backed by a strong retail franchise. Retail book size rose 26 per cent year-on-year to Rs 1,19,508 crore, while the consolidated book stood at Rs 1,21,728 crore, up 25 per cent. Retailisation reached 98 per cent of the overall book.
LTF achieved its highest ever annual retail disbursements of Rs 83,213 crore in FY26, growing 39 per cent year-on-year. Quarterly disbursements also hit a record Rs 24,107 crore in Q4FY26, reflecting a sharp 62 per cent growth. Growth was driven by segments such as Two-Wheeler Finance, Gold Finance, Personal Loans and Rural Business Finance.
On the asset quality front, Gross Stage 3 (GS3) improved to 2.88 per cent in Q4FY26 from 3.29 per cent a year ago, while Net Stage 3 (NS3) remained stable at 0.96 per cent. Credit cost stood steady at 2.54 per cent for FY26, with Q4FY26 improving to 2.64 per cent from 2.83 per cent in Q3FY26.
The company also reported its lowest ever borrowing cost, with quarterly Weighted Average Cost of Borrowing (WACB) at 7.17 per cent and yearly WACB at 7.35 per cent. Profitability metrics improved, with Return on Assets (RoA) at 2.39 per cent and Return on Equity (RoE) rising to 11.33 per cent for FY26.
Segment-wise, Personal Loans saw the fastest growth with disbursements doubling 100 per cent year-on-year to Rs 12,220 crore. Rural Business Finance disbursements grew 24 per cent, while Two-Wheeler Finance rose 16 per cent. Housing Loans and Loan Against Property grew 20 per cent, and SME Finance expanded 23 per cent. Gold Finance also gained traction with Rs 6,700 crore disbursements and rapid branch expansion to 330 branches.
LTF strengthened its distribution network with presence across around 2 lakh villages and over 500 cities, supported by 2,311 rural centres and 529 urban branches. The company leveraged a customer base of 2.8 crore to drive cross-sell, contributing 43 per cent of repeat disbursements.
On the technology front, LTF accelerated AI adoption through initiatives like Project Cyclops (underwriting) and Project Nostradamus (portfolio management). AI-led collections drove over Rs 4,000 crore recoveries, while bot-led efficiencies significantly reduced costs. The PLANET app crossed 2.40 crore downloads and facilitated collections of over Rs 9,500 crore.
The company announced its new five-year strategic roadmap “Lakshya 2031”, aiming for over 20 per cent book growth, credit cost below 2 per cent, RoA between 3 per cent to 3.2 per cent, and RoE between 16 per cent to 18 per cent.
The Board recommended a Dividend of Rs 2.75 per equity share for FY26.
The company has a market cap of over Rs 300 crore. The stock price has surged over 223.35 per cent in last 3 years. The stock has delivered around 83.39 per cent returns from its 52-week low of Rs 158.20 per share.
Disclaimer: The article is for informational purposes only and not investment advice.
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