L&T Finance Q2 FY26 Results: PAT Hits ₹735 Crore, Retail Book Grows 18% YoY

L&T Finance Limited announced its unaudited consolidated and standalone financial results for the quarter and half year ended September 30, 2025. The company reported a retailisation of 98%, reflecting a strong focus on retail lending. The retail book stood at ₹1,04,607 crore, up 18% YoY from ₹88,975 crore.

Asset Quality and Credit Metrics

Gross Stage 3 (GS3) and Net Stage 3 (NS3) were maintained at 3.29% and 1.00% respectively. Credit cost improved to 2.41%, down from 2.59% in Q2FY25, while Return on Assets (RoA) stood at 2.41%, demonstrating effective risk management and stable profitability.

Segment-wise Performance

• Rural Business Finance: Disbursements grew 16% YoY to ₹6,316 crore, with book size reaching ₹27,460 crore, supported by improved collections and sectoral trends.
• Farmer Finance: Disbursements slightly declined by 7% to ₹1,654 crore, but the book size increased 10% YoY to ₹15,943 crore.
• Two-Wheeler Finance: Disbursements rose 5% YoY to ₹2,512 crore, with a book size of ₹13,013 crore. LTF launched a festive TVC featuring Jasprit Bumrah promoting instant approval, maximum eligibility, and competitive EMIs, along with attractive loan schemes.
• Personal Loans: Disbursements surged 114% YoY to ₹2,918 crore, with book size up 52% YoY to ₹10,878 crore, aided by big tech partnerships.
• Housing Loans & LAP: Disbursements increased 7% YoY to ₹2,713 crore, with book size growing 26% YoY to ₹27,407 crore.
• SME Finance: Disbursements were ₹1,468 crore, up 18% YoY, and the book size grew 44% YoY to ₹7,465 crore.
• Gold Loans: Disbursements reached ₹983 crore, with a book size of ₹1,475 crore.

Financial Performance Highlights

Profit After Tax (PAT) for Q2FY26 was ₹735 crore, up 6% YoY, the highest ever for the company. Total book size grew 15% YoY to ₹1,07,096 crore. Net Interest Margin + Fees stood at 10.22%, while Return on Equity (RoE) was 11.33%.

Technology and Future Initiatives

LTF continued to focus on next-gen technology, with Project Cyclops implemented across Two-wheeler, Farm Equipment, and SME finance, and plans to expand to Personal Loans in Q3FY26 and Home Loans & Rural Group Loans in FY27. The beta version of their AI-powered, real-time automated portfolio monitoring engine, ‘Project Nostradamus’, was deployed for the Two-wheeler business in August 2025, a month earlier than planned.

L&T Finance Share Price Performance

On October 16, 2025, L&T Finance share price (NSE: LTF) opened at ₹265.00, down from its previous close of ₹271.55. At 9:51 AM, the share price of LTF was trading at ₹268.62, down by 1.08% on the NSE.

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Conclusion

L&T Finance delivered strong operational and financial performance in Q2FY26, supported by robust retail growth, improved asset quality, and technology-led initiatives, positioning the company for sustained growth across lending segments.

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