Summary:
L&T Finance Limited (LTF) reported a robust Q2 FY26 performance, with profit after tax (PAT) rising 6% year-on-year to ₹735 crore. The company’s retail loan portfolio surpassed the ₹1 lakh crore milestone, supported by strong disbursements across personal loans, housing finance, and rural lending. Stable asset quality, digital transformation initiatives, and an international credit rating upgrade underscore LTF’s resilient growth trajectory.
Strong Q2 Financial Performance
L&T Finance delivered a consolidated PAT of ₹735 crore for Q2 FY26, marking a 6% increase over ₹692 crore in the same quarter last year and a 5% rise sequentially from Q1. This growth was driven by strong retail disbursements, higher customer engagement, and steady operational execution across business segments.
The company’s retail book surged to ₹1,04,607 crore, reflecting an 18% YoY growth, with retailisation at 98%. Retail lending remains a key focus, contributing significantly to LTF’s overall profitability.
Record Retail Disbursements
Retail lending saw its highest-ever quarterly disbursements of ₹18,883 crore, a 25% YoY jump. Among the key segments:
- Personal Loans: ₹2,918 crore, up 114% YoY
- Rural Business Finance: ₹6,316 crore, up 16% YoY
- Housing Loans & LAP: ₹2,713 crore, up 7% YoY
- Two-wheeler Finance: ₹2,512 crore, up 5% YoY
- SME Finance: ₹1,468 crore, up 18% YoY
- Farmer Finance: ₹1,654 crore, down 7% YoY
- Gold Loan: ₹983 crore, with branch expansion plans underway
This strong retail performance highlights LTF’s strategic focus on diversifying the loan book while leveraging digital platforms and partnerships.
Stable Asset Quality
L&T Finance maintained a healthy asset quality profile:
- Gross Stage 3 (GS3): 3.29% vs. 3.19% YoY
- Net Stage 3 (NS3): 1.00% vs. 0.96% YoY
The stable asset quality demonstrates effective risk management despite rapid growth in disbursements across multiple segments.
Strategic Developments & Digital Initiatives
- International Credit Rating Upgrade: S&P Global Ratings upgraded LTF’s long-term issuer rating to “BBB/Stable” from “BBB-/Positive”.
- Digital Transformation:
- Project Nostradamus launched for Two-wheeler finance
- Project Cyclops rolled out across Two-wheeler, Farm Equipment, and SME finance
- Partnerships with Google Pay for Personal Loan origination
- Branch Expansion: Gold loan distribution network to grow to ~330 branches.
Management Commentary
Mr. Sudipta Roy, MD & CEO of LTF, stated:
“Our focus this quarter remained on execution and growth, enabling strong performance even in a seasonally slow period. Momentum across rural and urban segments, fueled by digital initiatives and favorable monsoons, positions us well for H2, especially with festive demand and GST 2.0 reforms.”
Outlook
With robust retail growth, digital transformation, and disciplined execution, L&T Finance is well-positioned for sustained growth in FY26. Strong fundamentals and strategic initiatives will continue to drive profitability while enhancing customer reach and operational efficiency.
Disclaimer:
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