L&T Finance net profit rises 2% in Q1FY26, margins and fees moderate

L&T Finance posts Rs 701 crore consolidated net profit in Q1FY26, a 2% rise YoY, as NIM plus fees decline and disbursements dip in rural segment

L&T Finance Ltd (LTF) posted a mere two per cent year-on-year (Y-o-Y) growth in consolidated net profit at Rs 701 crore in the first quarter ended June 2024 (Q1FY26) amid moderation in its net interest margins (NIM) and fees.

 

Its net profit was Rs 686 crore in Q1 of the previous year.

 

LTF, the lending unit of engineering conglomerate Larsen and Toubro Ltd, posted a six per cent Y-o-Y growth in consolidated total income at Rs 2,548 crore in Q1FY26. Its NIM plus fees and other income declined to 10.22 per cent in Q1FY26 from 11.08 per cent in Q1FY25, LTF said in a statement.

 

The consolidated loan book size grew by 15 per cent Y-o-Y to Rs 1.02 trillion at the end of June 2025 from Rs 88,717 crore a year ago. It added a secured high yield product (gold loans) to its loan portfolio in Q1Fy26.

 

Sudipta Roy, managing director & chief executive officer, LTF said, “In a challenging quarter, the company remained focused on outcomes and achieved a resilient performance while showcasing ability to manage market headwinds." 

 

The impetus remains on risk calibrated business growth with a sharp focus on a strong asset quality, laying the foundation for a sustainable and predictable growth, he added.

 

Elaborating on segment-wise performance, the company said the disbursement in rural business finance was Rs 5,618 crore in Q1FY26, down three per cent. The outstanding book saw three per cent growth at Rs 26,616 crore at the end of June 2025.

 

In the farmer finance business, the disbursements were up 16 per cent to Rs 2,200 crore in Q1FY26. The outstanding book also grew by 11 per cent to Rs 15,756 crore in Q1FY26 from Rs 14,204 crore a year ago, LTF said.

 

In the housing finance and loans against property (LAP) segment, the disbursements were up 24 per cent to Rs 2,780 crore in Q1FY26 from Rs 2,245 crore in Q1FY24. The outstanding loan book grew 33 per cent to Rs 26,464 crore.