L&T Finance Board Approves ₹6,012 Crore Non-Convertible Preference Share Issue in FY27

L&T Finance has approved the issuance of cumulative compulsorily redeemable non-convertible preference shares of up to ₹6,012 crore for FY27, subject to shareholder approval, as per a recent exchange filing. 

The board also cleared fundraising through non-convertible debentures in one or more tranches, with total outstanding borrowings capped at ₹1.23 lakh crore within approved limits. These measures form part of its funding plan. 

Q4FY26 Earnings Overview  

The company reported a consolidated profit after tax of ₹807 crore for the quarter ended March, marking a 27% rise from a year earlier. The increase was supported by higher retail activity and stable credit performance. 

For FY26, profit after tax stood at ₹2,981 crore, up 13% year-on-year. Adjusted for a one-off Labour Code impact recorded earlier, annual profit came to ₹3,003 crore. 

Loan Book Trends 

Retail disbursements rose 62% year-on-year during the quarter to ₹24,107 crore. Growth was led by 2-wheeler loans, gold finance, and personal loans. 

The retail loan book expanded 26% to ₹1.19 lakh crore at the end of March and accounted for 98% of the overall portfolio. The consolidated loan book stood at ₹1.21 lakh crore. 

Margins and Asset Quality 

Net interest margin plus fees for the quarter was 10.47%, compared with 10.41% in the preceding quarter. Credit costs eased to 2.64% from 2.83% sequentially, while remaining at 2.54% for the full year. 

Slippages declined to ₹402 crore from ₹600 crore in the December quarter. The wholesale loan book continued to contract, falling 14% year-on-year to ₹2,220 crore. Net security receipts dropped 18% to ₹4,808 crore. 

Other Developments 

The company carried out its annual expected credit loss model update during the quarter, resulting in provision changes without affecting the profit and loss account. 

The board approved entry into the pre-paid instruments segment, including wallets and cards, and plans to operate as a third-party application provider, subject to regulatory approvals from the Reserve Bank of India and the National Payments Corporation of India. 

A dividend of ₹2.75 per equity share has been recommended for FY26. The board also approved the appointments of Sachinn Joshi and Raju Dodti as Whole-time Directors for fixed terms. 

Read More: Reliance Industries Becomes 1st Indian Company to Reach $10 Billion Annual Profit Milestone! 

L&T Finance Share Price Performance  

As of April 27, 2026, 12:20 pm, L&T Finance share price was trading at ₹289.43, a 0.21% decrease from the previous closing price. 

Conclusion 

The approvals and financial performance indicate continued expansion in retail lending alongside stable margins and controlled credit costs. 

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