L&T Finance (LTF) Q1 25/26 earnings summary

Executive summary

• Achieved consolidated PAT of ₹701 crore in Q1 FY26, up 10% quarter-on-quarter and 2% year-on-year, with the highest ever consolidated book at ₹1,02,314 crore and ROA of 2.37%.

• Retailisation reached 98%, with retail disbursements up 18% year-on-year to ₹17,522 crore, driven by strong growth across business lines and technology investments.

• Gold loan business integration completed, adding over 130 branches, 700 employees, and more than ₹1,300 crore to the book, with expansion plans underway.

• International credit ratings of BBB- (S&P, Fitch) achieved, opening new global funding avenues.

• Auditors issued an unmodified limited review report, confirming compliance with SEBI and RBI regulations.

Financial highlights

• Consolidated total income for Q1 FY26 was ₹4,259.60 crore, up from ₹3,784.61 crore in Q1 FY25; consolidated PAT at ₹700.84 crore, up 10% sequentially.

• NIM plus fee at 10.22%, up from 10.15% in the previous quarter; NIM at 8.24%.

• Credit cost after macro-provision utilisation was 2.23% in Q1 FY26, down from 2.54% in Q4 FY25.

• ROE at 10.86%, up 73 basis points quarter-on-quarter.

• Book value per share at ₹102.4, with a dividend payout of ₹2.75 per share (~₹700 crore).

Outlook and guidance

• Disbursement pace expected to accelerate, with focus on risk and technology execution; Project Cyclops to be fully implemented in key segments by Q2/Q3 FY26.

• Credit cost targeted to decline to 2.3–2.5% by Q4 FY26, with further improvement expected as Cyclops matures.

• ROA expected to reach 2.5% by Q4 FY26 and 2.8% by FY27; Lakshya 2026 goals remain on track.

• Gold loan business expected to become a key product in both rural and urban markets.