L&T Finance Q3 Profit Jumps 18% Fueled by Retail Loan Surge

BANKINGFINANCE

Overview

L&T Finance posted a robust December quarter with net profit up 17.9% year-on-year to ₹738.6 crore. Net interest income rose 13.4% to ₹2,537 crore, driven by strong momentum in retail lending. Retail disbursements surged 49% to ₹22,690 crore, expanding the retail loan book by 21% to ₹1.11 lakh crore, reflecting a continued shift towards retail exposures.

L&T Finance Holdings Limited reported a strong performance for the December quarter, announcing a 17.9% year-on-year increase in net profit to ₹738.6 crore.

Robust Profit Growth

This profit surge significantly beat the ₹626.4 crore posted in the corresponding period last year. The company's net interest income (NII) also showed healthy growth, rising 13.4% to ₹2,537 crore from ₹2,237 crore a year earlier.

Retail Lending Momentum

The company highlighted sustained momentum across its retail lending portfolio. Retail disbursements for Q3 FY26 were an estimated ₹22,690 crore, marking a substantial 49% increase from the ₹15,210 crore recorded in the year-ago quarter. This broad-based growth spanned rural, urban, small and medium enterprise, and farmer finance segments.

Strategic Shift to Retail

The retail loan book expanded to an estimated ₹1.11 lakh crore as of December 31, 2025. This represents a year-on-year growth of approximately 21% from ₹92,224 crore previously. Retailisation remained a key focus, constituting 97% of the loan book during the quarter, aligning with the lender's strategy to move away from wholesale exposures.

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