Net interest income for the period under review was Rs 2,054 crore, up 2% YoY. Net interest margin was 8.24% in Q1 FY26 as against 9.31% in Q1 FY25.
Earnings before credit cost rose by 4% to Rs 1,499 crore in Q1 FY26 from Rs 1,438 crore in Q1 FY25.
Credit cost for the June’25 quarter was Rs 556 crore, up 8% YoY.
Profit before tax in Q1 FY26 stood at Rs 943 crore, up by 2% from Rs 923 crore posted in Q1 FY25.
The quarterly retail disbursements increased by 18% to Rs 17,522 crore in Q1 FY26 from Rs 14,839 crore. This was led by farmer finance, home loan & loan against property (LAP), and gold loans in the secured assets space while unsecured asset growth was contributed by personal loans.
The company's quarterly weighted average cost of borrowing (WACB) for Q1 FY26 was 7.68%, down 16 basis points (bps) on a quarter-on-quarter (QoQ) basis.
Consolidated book size as on 30 June 2025 was at Rs 1,02,314 crore as against Rs 88,717 crore as on 30 June 2024, up 15% YoY. Retail book was at Rs 99,816 crore as on 30 June 2025, up 18% YoY.
Gross Stage-3 (GS3) stood at 3.31% in Q1 FY26 as against 3.29% in Q4 FY25 and 3.14% in Q1 FY25. Net Stage 3 (NS3) stood at 0.99% in Q1 FY26 as against 0.79% in Q1 FY25 and 0.97% in Q4 FY25.
Consolidated return on equity (RoE) stood at 10.86% as against 11.58% in Q1 FY25. Return on assets (RoA) stood at 2.37% as against 2.68% in Q1 FY25.
Sudipta Roy, managing director & CEO, LTF said: "In a challenging quarter, our Company remained focused on outcomes and achieved a resilient performance while showcasing our ability to manage market headwinds.
In the quarter, we achieved the highest-ever consolidated book of over Rs. 1 lakh crore milestone and added a secured high yield product to our loan portfolio i.e., gold loan.
Our company has been assigned a debut investment grade credit rating of “BBB-/Positive” by S&P Global Ratings and “BBB- /Stable” by Fitch Ratings. This rating will serve as a foundation for further diversifying our liability franchise."
L&T Finance offers financing for two-wheelers, consumer goods, homes, farm equipment, women entrepreneurs, rural groups, real estate, and infrastructure. It provides financing for small and medium enterprises through term loans and overdraft facilities.
The scrip fell 1.73% to currently trade at Rs 206.95 on the BSE.