From Legacy to Lakshya: L&T Finance Races Past Retail Milestone with ₹701 Cr Q1 Profit

L&T Finance Ltd dazzled the Street with its Q1 FY26 (June 2025 quarter) results, reporting robust profit growth and a near-complete transition to a retail-focused business. The company’s consolidated net profit soared to ₹701 crore, supported by strong operational revenues and landmark achievements in its retail loan book.

 

Key Highlights

 

All-Time High Profit: Consolidated net profit up 2% YoY and 10% QoQ, reaching ₹701 crore for Q1 FY26.

 

Revenue Growth: Total consolidated revenue from operations stood at ₹4,260 crore (₹42.60 billion), reflecting a 13% YoY rise.

 

Retail Focus: Retail loan book swelled 18% YoY to ₹99,816 crore, now comprising a record 98% of the company’s total loan book, surpassing the company’s “Lakshya 2026” target two years early.

 

Retail Disbursements: Jumped 18% YoY to ₹17,522 crore, affirming increased penetration in the retail lending segment.

 

Asset Quality: Gross Stage 3 (GS3) ratio improved to 3.31%, while Net Stage 3 (NS3) stood at an industry-low 0.99%.

 

Strategic Moves: The quarter witnessed the successful integration of an acquired gold loan portfolio and the launch of ‘Project Cyclops’ in SME Finance.

 

Market Performance: The stock surged 3.18% on July 18, 2025, approaching its 52-week high, underlining investor confidence in its retail transformation and financial resilience.

 

L&T Finance’s performance in Q1 FY26 exemplifies its successful digital and retail pivot, resilient asset quality, and ambition to lead India’s NBFC sector.

 

Source:

Reuters, NDTV Profit, L&T Finance Corporate Filings