L&T Finance (LTF) Q3 25/26 earnings summary

Executive summary

• Achieved highest-ever quarterly core PAT of ₹760 crore, up 21% year-on-year, and PAT after one-time labor code impact at ₹739 crore, up 18% year-on-year.

• Retailisation reached 98% of the overall book, with the retail book at ₹1,11,990 crore, up 21% year-on-year; consolidated book at ₹1,14,285 crore.

• Retail disbursements for Q3FY26 were ₹22,701 crore, a 49% year-on-year increase, driven by strong festive demand and GST 2.0 implementation.

• Digital and AI initiatives, including Cyclops and Nostradamus, are enhancing underwriting, portfolio management, and operational efficiency.

• Unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2025, were approved and published, with statutory auditor review and no material misstatements reported.

Financial highlights

• Total income for Q3FY26 was ₹2,920 crore, up 18% year-on-year; consolidated total income for the quarter was ₹4,581.49 crore.

• Net interest margin plus fees improved 19 bps sequentially to 10.41%.

• Consolidated net profit after tax for the quarter was ₹737.99 crore, compared to ₹625.65 crore year-over-year.

• Credit cost reduced to 2.83% in Q3 FY26, down from 3.80% in Q4 FY25; core credit cost at 2.74% excluding one-time co-borrower provision.

• Book value per share rose to ₹108.3, up 9% year-on-year; basic EPS was 2.9, up 17% year-on-year.

Outlook and guidance

• Confident of sustaining growth momentum and improving asset quality through FY27.

• Credit cost trajectory expected to reach 2%-2.2% by Q4 FY27, with potential to achieve earlier if tailwinds persist.

• NIM plus fee guidance maintained at 10%-10.5%.

• Lakshya 2026 goals remain on track: retailisation >95%, retail book CAGR >25%, GS3 <3%, NS3 <1%, and consolidated RoA of 2.8–3%.

• Medium-term cost-to-income ratio expected to trend below 40% as scale increases.