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

Executive summary

• Achieved highest-ever annual PAT of INR 2,644 crore in FY25, up 14% year-on-year, with record annual ROA of 2.44% and Q4FY25 PAT at INR 636 crore, up 15% year-on-year; retailisation reached 97% of the overall book.

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

• Diversified franchise, risk-calibrated disbursement strategies, and technology initiatives (Project Cyclops, Project Nostradamus, PLANET 3.0 app) supported growth and improved asset quality.

• Strategic expansion into gold loans and scaling of new products like MicroLab and Warehouse Digital Finance; acquisition of Paul Merchants Finance's gold loan business expected to close by Q2 FY26.

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

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 for FY25 at INR 2,644 crore, up 14% year-on-year.

• Retail disbursement for Q4 at INR 14,899 crore; annual retail disbursement at INR 60,040 crore, up 11% year-on-year.

• Consolidated ROA for Q4 at 2.22% and for FY25 at 2.44%, both showing year-on-year improvement; consolidated ROE for FY25 at 10.87%, up 52 basis points year-on-year.

• NIM plus fees for FY25 at 10.59% (down 7bps YoY); Q4FY25 at 10.15%, impacted by a one-off refund and tax gain.

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

Outlook and guidance

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

• Credit costs projected to normalize to 2.3%-2.5% in FY26, with further improvement in H2; portfolio rebalancing aimed at reducing opex and structurally lowering credit cost.

• Expect normalized collection efficiency by early Q2FY26, barring further macro events; cautious on geopolitical risks, with guidance excluding unforeseen disruptions.

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

• Board recommended a final dividend of Rs. 2.75 per share, higher than the previous year's Rs. 2.50, reflecting confidence in future performance.