Net interest income jumped 18% to Rs 2,407 crore in Q3 FY26 from Rs 2,041 crore in Q3 FY25.
Operating expense for the period under review was Rs 1,135 crore, up 7% YoY.
Earnings before credit cost rose by 25% YoY to Rs 1,785 crore in the third quarter of FY26.
Credit cost added up to Rs 792 crore in Q3 FY26, up 32% YoY.
Profit before tax in Q3 FY26 at Rs 993 crore, up by 20% from Rs 825 crore in Q3 FY25.
For Q3 FY26, retailisation stood at 98% of overall book. Retail book as on 31 December 2025 stood at Rs 1,11,990 crore, up 21% YoY.
Total book size was at Rs 1,14,285 crore as on 31 December 2025, up 20% YoY.
Gross Stage-3 (GS3) improved sequentially by 10 basis points to 3.19% and Net Stage-3 (NS3) by 8 basis points to 0.92% in Q3 FY26.
Return on assets (RoA) stood at 2.31% in Q3 FY26 as against 2.27% in Q3 FY25. RoE after exceptional items was at 11.07% in Q3 FY26 as against 10.21% in Q3 FY25. Consolidated CRAR ratio as on 31 December 2025 stood at 19.10%.
Sudipta Roy, managing director & CEO, LTF, said: "Q3 FY26 for the financial services sector has been defined by a powerful convergence of favourable macro-tailwinds.
The implementation of GST 2.0, good monsoons, and a series of repo rate cuts have seen a surge in consumption and created an environment for growth. In Q3FY26, LTF’s focus remained on delivering a standout performance across business segments.
We registered the highest ever quarterly disbursements of Rs. 22,701 crore, up 49% YoY, and the retail portfolio reaching Rs.1,11,990 crore, reflecting a growth of 21% YoY leading to a PAT of Rs. 760 crore, up 21% YoY (without the impact of a one-time exceptional item).
Our proprietary AI driven next-gen digital credit engine ‘Project Cyclops’ is now implemented in Personal Loans in addition to Two-wheeler, Farm Equipment, and SME Finance businesses. It will go live in Home Loans and LAP and Rural Group Loans and MFI businesses in FY27.”
L&T Finance is a leading non-banking financial company (NBFC), offering a range of financial products and services.
The scrip had added 0.19% to end at Rs 296.30 on the BSE on Friday.