L&T Finance achieved a Q1FY26 consolidated profit after tax of Rs. 701 crore, marking a 10% increase compared to the previous quarter and a 2% growth year over year.
L&T Finance Ltd (LTF) has announced impressive financial results for the quarter ending June 2025 (Q1FY26), accompanied by notable achievements and ongoing challenges.
Financial Performance Highlights
The company's net sales reached ₹4,259.57 crore, marking a 12.56% year-on-year (YoY) increase, and the highest sales figure in the last five quarters. Operating profit was ₹2,619.62 crore, with an operating margin of 61.50%, demonstrating enhanced operational efficiency. Profit before tax (PBT) stood at ₹943.19 crore, showing a significant quarter-on-quarter (QoQ) increase of 35.9%. Profit after tax (PAT) was ₹700.84 crore, up 2.3% YoY and 26.7% QoQ. Earnings per share (EPS) rose to ₹2.80, up from ₹2.70 YoY and ₹2.20 QoQ. LTF’s consolidated assets ("consolidated book") reached a record ₹1,02,314 crore, up 15% YoY, with the retail loan book size contributing significantly to this asset growth.
Operational Challenges
Despite profits and sales growth, LTF faced a declining operating cash flow, which was negative at ₹-16,607.68 crore, continuing a three-year downward trend. YoY growth rates for consolidated net profit and net sales slowed compared to the previous year (net profit growth 2.27% vs. 29.11% in June 2024; sales growth 12.56% vs. 17.41%).
Credit Ratings
Fitch Ratings assigned LTF long-term foreign and local currency Issuer Default Ratings (IDR) of "BBB-" with a Stable outlook. S&P Global Ratings also assigned LTF a debut Investment Grade Credit Rating.
Digital Initiatives
LTF has rolled out its AI-driven next-gen digital credit engine, 'Project Cyclops', for SME Finance and its advanced version in Two-wheeler Finance. The company's customer-facing PLANET app has crossed more than 1.86 Crore downloads as of date. LTF has also launched a Business Loan campaign with the tagline, 'Aapke Business Ka Game Changer', featuring Indian cricketer Jasprit Bumrah.
Other Achievements
LTF has been certified as a Great Place To Work, and has won many prestigious awards for its flagship CSR project - "Digital Sakhi". The retailisation stood at 98% for the quarter ended June 30, 2025, exceeding Lakshya 2026 target. The company recorded a quarterly retail disbursement of Rs. 17,522 Crore for the first quarter ended June 30, 2025, up 18% YoY. LTF has a focus on creating a top-class, digitally enabled, Retail finance company as part of the Lakshya 2026 plan, with Fintech@Scale as one of its pillars.
In summary, L&T Finance Ltd has demonstrated solid revenue and profit growth in Q1FY26 with record consolidated assets, signaling business expansion and operational efficiency. However, the decline in operating cash flow and slowing profit growth rates warrant attention. The company's digital transformation efforts and recent credit ratings were not explicitly detailed in the available information.
[1] Financial data from Q1FY26 for Housing Loans and Loans Against Property: - Q1FY26 book size: Rs. 26,464 Crore, up 33% YoY. - Q1FY26 disbursements: Rs. 2,780 Crore, up 24% YoY.
[2] Financial data from Q1FY26 for SME Finance: - Q1FY26 book size: Rs. 6,964 Crore, up 56% YoY. - Q1FY26 disbursements: Rs. 1,273 Crore, up 30% YoY.
[3] Financial data from Q1FY26 for the retail book: - Retail book size: Rs. 99,816 Crore, up 18% YoY. - Quarterly retail disbursement: Rs. 17,522 Crore, up 18% YoY.
[4] Retailisation stood at 98% for the quarter ended June 30, 2025, exceeding Lakshya 2026 target.
[5] LTF has over 2.6 Crore customer database.
- The impressive growth in the retail book of L&T Finance Ltd, reaching ₹99,816 crore and a quarterly retail disbursement of ₹17,522 crore, signifies the success of their business strategy and expansion in retail finance.
- The company's foray into technology has been evident with the launch of 'Project Cyclops', an AI-driven digital credit engine, aiming to boost SME Finance and Two-wheeler Finance, indicating a focus on technology governance for business growth.
- L&T Finance Ltd's achievements in sustainability and corporate governance were recognized with prestigious awards for their flagship CSR project, "Digital Sakhi", and they were certified as a Great Place To Work, demonstrating their commitment to these areas as part of their overall business operations.
