L&T Finance announced record high quarterly core PAT of ₹760 Cr, up 21% YoY, for Q3FY26. Retail disbursements rose to ₹22,701 Cr, a 49% YoY increase, and the retail book grew to ₹1,11,990 Cr, up 21% YoY. RoA stood at 2.37%. The company expects momentum to continue through FY27 with improving asset quality and reduced credit costs.
Record Quarterly Performance
L&T Finance reported its highest-ever quarterly core PAT of ₹760 Cr in Q3FY26, marking a 21% YoY increase. Even after accounting for a one-time impact of the New Labour Code (₹29 Cr), PAT remained high at ₹739 Cr, up 18% YoY. This performance was supported by record retail disbursements.
Key Financial Highlights
Other key highlights from the Q3FY26 earnings report include:
- Retail disbursements of ₹22,701 Cr, up 49% YoY.
- Retail book growth to ₹1,11,990 Cr, a 21% YoY increase.
- Return on Assets (RoA) of 2.37% (2.31% after one-time impact).
- Total income growth of 18% YoY and 8.4% QoQ.
- Net Interest Margins (NIM) + Fees improved by 19 bps QoQ to 10.41%.
- Credit cost moderated to 2.83% from 2.98% in Q2FY26.
Segmental Performance
Several business segments exhibited strong performance:
- Rural Business Finance: Quarterly disbursements of ₹6,740 Cr, up 47% YoY; book size reached ₹28,976 Cr, up 10% YoY.
- Farmer Finance: Book size reached ₹16,671 Cr, up 11% YoY.
- Two-Wheeler Finance: Quarterly disbursements of ₹3,217 Cr, up 33% YoY; book size reached ₹13,913 Cr, up 10% YoY.
- Personal Loans: Quarterly disbursement of ₹3,574 Cr, up 118% YoY; book size reached ₹12,810 Cr, up 64% YoY.
- Home Loans & LAP: Quarterly disbursements of ₹2,879 Cr, up 16% YoY; book size at ₹28,682 Cr, up 22% YoY.
- SME Finance: Book stood at ₹7,946 Cr, up 37% YoY.
- Gold Finance: Quarterly disbursements of ₹1,408 Cr, up 43% QoQ; closing book stood at ₹1,738 Cr.
Strategic Initiatives and Outlook
L&T Finance is implementing Project Cyclops across various businesses, leading to improved portfolio quality. Project Nostradamus, an AI-driven portfolio management engine, is also being rolled out. The company aims to establish over 330 gold loan branches by the end of FY26. L&T Finance reaffirms its commitment to achieving its Lakshya 2026 goals, including a RoA target of 2.8%-3.0%.
Source: BSE
