L&T Finance shares rise 3% as Q3 disbursements jumps 49%; details here

L&T Finance shares rose after it reported a jump in retail disbursements and retail book in the third quarter of the current financial year

Shares of L&T Finance Ltd. rose nearly 3 per cent on Tuesday after it reported a jump in retail disbursements and retail book in the third quarter of the current financial year (Q3FY26). 

 

The non-banking financial company's (NBFC) stock rose as much as 2.86 per cent during the day to a new peak of ₹329.4 per share, the biggest intraday rise since December 31, 2025. The stock pared gains to trade 1.5 per cent higher at ₹325.1 apiece, compared to a 0.07 per cent decline in Nifty 50 as of 9:50 AM. 

 

Shares of the company rose for the sixth straight session and currently trade at 4.5 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 135 per cent in the last 12 months, compared to a 10.5 per cent advance in the benchmark Nifty 50. L&T Finance has a total market capitalisation of ₹81,435.50 crore. 

 

L&T Finance reports Q3 business update

L&T Finance’s retail disbursements for Q3 are estimated at around ₹22,690 crore, marking a growth of nearly 49 per cent year-on-year (Y-o-Y).

 

Rural business finance disbursements rose to ₹6,740 crore from ₹4,599 crore a year ago, while farmer finance increased to ₹2,780 crore from ₹2,495 crore. Urban finance disbursements climbed to ₹9,670 crore from ₹6,531 crore in the year-ago period, and small and medium enterprise finance rose to ₹1,550 crore from ₹1,249 crore.

 

Gold finance, which had no disbursements in the year-ago quarter, contributed ₹1,400 crore during the quarter, while disbursements from the acquired portfolio increased to ₹550 crore from ₹336 crore.

 

Meanwhile, L&T Finance’s retail loan book stood at an estimated ₹1,11,900 crore at the end of the third quarter, reflecting a Y-o-Y growth of around 21 per cent. The retail loan book had stood at ₹92,224 crore at the end of the same quarter last year. Realisation came in at 98 per cent for the third quarter, compared to 97 per cent in the same period last year. 

 

Motilal Oswal said in a report that retail loans grew 21 per cent with healthy disbursements, adding that Sstrong growth is seen in rural business finance, urban finance, and gold loans. The brokerage has a 'Buy' rating on the stock. 

L&T Finance Q2 recap 

L&T Finance reported its highest-ever quarterly PAT of ₹735 crore, up 6 per cent Y-o-Y and 5 per cent Q-o-Q. The retail book crossed the ₹1 trillion milestone, reaching ₹1,04,607 crore, an 18 per cent growth Y-o-Y, while quarterly retail disbursements touched a record ₹18,883 crore, up 25 per cent Y-o-Y. Overall AUM stood at ₹1,07,096 crore, up 15 per cent Y-o-Y.

 

Asset quality remained robust, with gross stage 3 (GS3) at 3.29 per cent and net stage 3 (NS3) at 1.00 per cent. Credit cost for the quarter declined to 2.41 per cent from 2.59 per cent a year ago, while return on assets (RoA) was steady at 2.41 per cent. Return on equity (RoE) for the quarter stood at 11.33 per cent.