L&T Finance (LTF) Q4 25/26 earnings summary

Executive summary

• Achieved highest-ever annual profit after tax of ₹3,003 crore in FY 2026 before one-time Labour Code impact; PAT after impact at ₹2,981 crore, up 13% year-over-year; Q4 FY 2026 PAT at ₹807 crore, up 27% year-over-year.

• Retailisation reached 98% of the book, with retail book growing 26% year-over-year to ₹1,19,508 crore; annual retail disbursements at ₹83,213 crore, up 39% year-over-year; Q4 FY 2026 retail disbursements at ₹24,107 crore, up 62% year-over-year.

• Strong focus on risk-calibrated growth, productivity, and AI-driven operational efficiency, with the launch of the Lakshya 2031 strategic plan targeting tech-first, AI-enabled retail finance leadership.

• Audited consolidated and standalone financial results for FY2026 were approved with unmodified auditor opinions and compliance with SEBI regulations; final dividend of ₹2.75 per share recommended.

• Board approved entry into pre-paid instruments business, significant capital raising plans, and appointments of new Whole-time Directors.

Financial highlights

• Total income for FY2026 was ₹17,917.03 crore, up from ₹15,940.98 crore in FY2025; PPOP up 31% year-over-year.

• NIM plus fee for Q4 FY 2026 at 10.47%, up from 10.15% in Q4 FY 2025; for FY2026 at 10.33%, down 26bps year-over-year.

• Consolidated ROA at 2.40% for Q4 FY 2026, up 18 bps year-over-year; consolidated ROE at 11.71%, up 158 bps year-over-year.

• Credit cost for FY2026 at 2.54%, with Q4 FY2026 at 2.64%, down from 2.83% in Q3 FY2026.

• Book value per share increased 9% year-over-year to ₹111.7; debt/equity ratio at 3.93 (consolidated).

Outlook and guidance

• FY2027 AUM growth expected to exceed 20%, with stable NIM plus fee in the 10%-10.5% range; credit costs guided to trend lower to 2%-2.2% by Q4 FY2027.

• ROA target of 2.8% by exit FY2027; Lakshya 2031 targets include 20%+ book CAGR, credit costs below 2%, ROA of 3%-3.2%, and ROE of 16%-18%.

• Continued expansion of gold loan and multiproduct branches, launch of a digital payments platform by Q2 FY2027, and focus on digital and AI initiatives.

• Board approved raising up to ₹1,23,500 crore via non-convertible debentures and up to ₹6,012 crore via redeemable preference shares in FY2026-27.