LT Finance Q2FY26 net profit up 6 per cent, GST reform to support growth

LT Finance reported a 6% Y-o-Y rise in Q2 net profit to ₹735 crore, with strong loan growth and GST 2.0 reforms expected to boost momentum in the second half of FY26

LT Finance Ltd (LTF), a subsidiary of engineering major Larsen & Toubro Ltd, posted a six per cent year-on-year (Y-o-Y) rise in its net profit to ₹735 crore for the quarter ended September 2025 (Q2FY26).

 

The net interest margin (NIM) plus fees moderated to 10.22 per cent in September 2025 from 10.86 per cent a year ago, according to an analyst presentation. The company’s stock closed 3.35 per cent higher at ₹271.55 on the BSE.

 

The credit cost - money set aside as provisions for stressed assets - declined to 2.41 per cent YoY from 2.59 per cent a year earlier, though it rose sequentially from 2.23 per cent in Q1FY26.

 

Loan book expands 15% YoY 

In a statement, LTF said its gross loans grew 15 per cent Y-o-Y to ₹1.07 trillion as on September 30, 2025. In the rural business finance segment, the book size grew three per cent Y-o-Y to ₹27,460 crore, while the personal loans book rose 52 per cent Y-o-Y to ₹10,878 crore.

 

The farmer finance segment expanded 10 per cent YoY to ₹15,943 crore, and the two-wheeler finance book increased three per cent Y-o-Y to ₹13,013 crore.

 

The company leverages its 27 million-strong customer database to drive cross-sell and up-sell initiatives, which contributed 40 per cent of repeat disbursements by value and 51 per cent by count during Q2FY26.

 

GST reforms, festive demand to drive growth 

“On the back of good monsoons and improving customer consumption sentiment, we are confident that this momentum will accelerate in H2FY26 on the back of festive demand fuelled by GST 2.0 reforms,” said Sudipta Roy, Managing Director and Chief Executive Officer, LT Finance.

 

The company’s capital adequacy ratio remained comfortable at 20 per cent as of September 2025.