L&T Finance (LTF) Q4 24/25 earnings summary

Executive summary

• Achieved highest-ever annual PAT of INR 2,644 crore (up 14% YoY) and record annual ROA of 2.44%, with Q4FY25 PAT at INR 636 crore (up 15% YoY); retailisation reached 97% of the overall book.

• Retail book grew 19% YoY to INR 95,180 crore; overall book up 14% to INR 97,762 crore; retail disbursements for FY25 grew 11% YoY to INR 60,040 crore.

• Diversified franchise, risk-calibrated disbursement, and technology initiatives (Project Cyclops, Project Nostradamus, PLANET 3.0 app) drove improved asset quality and operational efficiency.

• Strategic expansion into gold loans, MicroLab, Warehouse Digital Finance, and partnerships with Amazon Pay, Cred, and PhonePe.

• Audited consolidated and standalone financial results for FY2024-25 approved with unmodified audit opinions; Board recommended a final dividend of Rs. 2.75 per share.

Financial highlights

• Consolidated total income for FY2024-25 was Rs. 15,940.98 crore, up from Rs. 14,051.05 crore in FY2023-24; consolidated PAT at INR 2,644 crore, up 14% YoY.

• Retail disbursement for the year at INR 60,040 crore, up 11% YoY; Q4FY25 retail disbursement at INR 14,899 crore.

• NIM plus fees for FY25 at 10.59% (down 7bps YoY); Q4FY25 at 10.15%.

• Utilized INR 400 crore macro-prudential provisions for FY25, with INR 575 crore buffer remaining.

• Operating expenses for FY25 at INR 3,984 crore (+13% YoY); credit cost after provisions at INR 2,311 crore (+15% YoY).

Outlook and guidance

• Expecting 20%+ book growth in FY26, with momentum picking up in H2; NIM plus fees guided at 10-10.5% for FY26; ROA expected between 2.4%-2.5%.

• Credit cost outlook for FY26 at 2.3-2.5%, trending toward 2% steady-state as technology initiatives mature.

• MFI and two-wheeler businesses expected to grow 10-15% and 15-20% respectively in FY26.

• Gold loan business integration on track, expected to close by Q2FY26.

• Board recommended a final dividend of Rs. 2.75 per share, higher than previous year, reflecting confidence in future performance.