L&T Finance has reported a steady performance in Q4FY26, with profit after tax rising 27 per cent year-on-year to Rs 807 crore, supported by high operating income and lower provisions. Retail disbursements increased to Rs 24,107 crore, up 62 per cent YoY, while the retail loan book expanded 26 per cent to Rs 1,19,508 crore.
Net interest income growth remained healthy, driven by expansion in advances and improved margins. NIM plus fee income stood at 10.47 per cent, supported by yield optimisation and efficient liability management.
Asset quality improved during the quarter, with credit cost declining to 2.64 per cent from 2.83 per cent in the previous quarter. Collection efficiency also stabilised, with overall trends indicating lower slippages and better portfolio performance.
The company continued to see traction across segments, including rural finance, personal loans, gold loans, and urban finance. Customer additions remained strong, with around 8.3 lakh new customers added during the quarter.
Technology-led initiatives such as AI-based underwriting and real-time portfolio monitoring contributed to risk management and operational efficiency. The company also plans to operationalise a payments platform by Q2FY27 to support customer acquisition and diversify fee income.
Under its Lakshya 2031 roadmap, L&T Finance is targeting over 20 per cent AUM growth, return on assets of 3 to 3.2 per cent, and return on equity of 16 to 18 per cent, supported by a technology-driven operating model and an improving asset-quality trajectory.
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