Whalesbook
Profit Surge and Dividend Payout
L&T Finance Holdings Ltd. announced a final dividend of ₹2.75 per equity share for fiscal year 2026, proposing a payout of nearly ₹688.7 crore. This follows a strong financial quarter where the company reported a 26.8% rise in consolidated net profit, reaching ₹807 crore from ₹636 crore in the same period last year.
Record Retail Loan Growth
Profit growth was driven by the company's expanding retail business. Quarterly retail disbursements recorded a record high, jumping 62% year-on-year to ₹24,107 crore. This surge reflects strong momentum across all product categories and the successful transition towards a fully retail-focused business model, with the retailisation of the portfolio standing at 98%.
Segmental Loan Disbursements
Key business segments showed healthy growth. Rural Business Finance disbursements grew 41% year-on-year to ₹7,208 crore. Personal loans rose 98% to ₹3,786 crore, supported by Big Tech partnerships. Farmer Finance grew 16% to ₹2,037 crore, and Two-wheeler Finance disbursements increased 58% to ₹2,930 crore. The Housing Loans and Loan Against Property portfolio expanded 20% to ₹30,009 crore, with quarterly disbursements of ₹3,134 crore. SME Finance saw disbursements rise 20% to ₹1,838 crore, and its book size grew 30% to ₹8,507 crore. The Gold Loan book reached ₹2,845 crore, with annual disbursements of ₹6,700 crore.
Asset Quality and Profitability
Financial metrics improved, with credit costs falling to 2.64% from 2.83% in the same quarter last year (Q2 FY25). The company posted a return on assets (RoA) of 2.40% and a return on equity (RoE) of 10.13%.