L&T Finance Q1 Net Profit Rises 2% to ₹701 Crore
L&T Finance Ltd reported a consolidated net profit of ₹701.10 crore for the quarter ended June 30, 2025, reflecting a 2.3% year-on-year (YoY) increase from ₹685.51 crore in Q1 FY25 and a 10.2% quarter-on-quarter (QoQ) rise from ₹636.17 crore in Q4 FY25. The positive growth was supported by robust income and healthier asset quality amid challenging market conditions.
The company’s total revenue increased 12.6% YoY to ₹4,259.57 crore, driven by growth in interest income and other operations. L&T Finance’s retail loan book hit a record high of ₹99,816 crore, up 18% YoY, reflecting strong demand in secured segments such as home loans, loans against property, and farmer finance. Disbursements across personal loans and SME finance also showed significant growth.
Managing Director & CEO Sudipta Roy attributed the resilient performance to disciplined credit sourcing, enhanced collection efficiency, and prudent risk management strategies, positioning the company for sustainable growth despite market headwinds.
Key Financial Highlights of Q1 FY26
| Parameter | Q1 FY26 | YoY Growth | QoQ Growth |
|---|---|---|---|
| Net Profit (₹ crore) | 701.10 | 2.3% | 10.2% |
| Total Income (₹ crore) | 4,259.57 | 12.6% | 5.9% |
| Retail Loan Book (₹ crore) | 99,816 | 18% | — |
| Net Interest Margin + Fees | 10.22% | — | — |
| Return on Equity (ROE) | 10.86% | — | — |
Segment-Wise Disbursement Growth
Personal Loans: +65% YoY
SME Finance: +30% YoY
Housing & Loans Against Property: +24% YoY
Farmer Finance: +16% YoY
Two-Wheeler Finance: -19% YoY (decline)
Rural Business Finance: -3% YoY (decline)
Frequently Asked Questions (FAQ)
Q: What was L&T Finance’s net profit for Q1 FY26?
A: L&T Finance reported a consolidated net profit of ₹701.10 crore for Q1 FY26, up 2.3% YoY and 10.2% QoQ.
Q: How did the retail loan book perform this quarter?
A: The retail loan book grew 18% YoY to a record ₹99,816 crore, driven by strong growth in secured loans and personal loans.
Q: What factors contributed to the profit growth?
A: Growth was supported by higher total income from interest, improved asset quality, disciplined lending, and efficient collections.
Q: Did all loan segments grow this quarter?
A: Most segments grew, with personal loans and SME finance seeing strong gains. However, two-wheeler finance and rural business finance saw slight declines.
Q: What is the outlook for L&T Finance?
A: Management remains positive, focusing on risk-calibrated growth, strong asset quality, and resilient performance amid market challenges.
Published on: July 21, 2025
Published by: PAVAN
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