L&T Finance Limited, a leading retail-focused non-bank lender, has released its provisional business update for Q2 FY26, reporting strong growth in retail disbursements and loan book expansion.
Retail Disbursements Surge
Retail disbursements for Q2 FY26 reached ₹18,850 crore, up 25% YoY from ₹15,092 crore in Q2 FY25. The retail share of the overall book rose to 98%, up from 96% last year, reflecting the company’s continued focus on retailisation.
Segment-wise disbursements (Q2 FY26):
- Rural Business Finance: ₹6,310 crore (vs ₹5,435 crore)
- Farmer Finance: ₹1,650 crore (vs ₹1,782 crore)
- Urban Finance: ₹8,140 crore (vs ₹6,285 crore)
- SME Finance: ₹1,460 crore (vs ₹1,244 crore)
- Gold Finance: ₹980 crore (nil in Q2 FY25)
- Acquired Portfolio: ₹310 crore (vs ₹346 crore)
Loan Book Growth
The retail loan book grew to ₹1,04,500 crore, up 17% YoY from ₹88,975 crore in September 2024. The growth was driven by secured segments, including housing loans, farmer finance, and gold loans.
Q1 FY26 Performance Recap
- Consolidated Profit After Tax: ₹701 crore (+2% YoY, +10% sequential)
- Consolidated Loan Book: ₹1,02,314 crore, with retail contributing ₹99,816 crore (+18% YoY)
- Retail Disbursements: ₹17,522 crore (+18% YoY)
- Net Interest Margin + Fees: 10.22% (slightly up from 10.15% in Q4FY25)
- Return on Equity (RoE): 10.86% (up from 10.13% in Q4FY25)
Summary
- Q2 FY26 Retail Disbursements: ₹18,850 crore (+25% YoY)
- Retail Loan Book: ₹1,04,500 crore (+17% YoY)
- Focus: Secured lending segments, rural and urban finance, and gold loans
- Outlook: Continued retailisation and growth in the secured loan portfolio supporting overall profitability
L&T Finance’s performance reflects robust demand across retail segments and a strong focus on asset quality and profitability, strengthening its position as a leading NBFC in India.
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