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L&T Finance Q1 Results | Net profit at ₹701 crore; retail loan book scales record ₹99,816 croreAsset quality remained stable, with gross stage 3 assets at 3.31% and net stage 3 at 0.99%. The results came after the close of the market hours. Shares of L&T Finance Ltd ended at ₹203.25, up by ₹3.60 or 1.80% on the BSE.By Jomy Jos Pullokaran   July 18, 2025, 10:05:12 PM IST (Published)2 Min ReadRetail-focused non-bank lender, L&T Finance Ltd, on Friday (July 18) reported a consolidated profit after tax of ₹701 crore for Q1FY26, a 10% sequential and 2% year-on-year rise, driven by robust growth in its retail portfolio and a focus on cost and asset quality.

The company’s consolidated loan book reached a record ₹1,02,314 crore, with the retail book contributing ₹99,816 crore — up 18% year-on-year. Retail disbursements for the quarter stood at ₹17,522 crore, an 18% rise from Q1FY25, led by growth in secured segments such as farmer finance, housing loans and gold loans.

Net interest margin plus fees stood at 10.22%, marginally up from 10.15% in Q4FY25 but lower than 11.08% in Q1FY25. Return on equity was at 10.86%, up from 10.13% in the previous quarter.

Also Read: L&T Finance completes acquisition of Paul Merchants Finance’s gold loan business

Personal loan disbursements rose 65% year-on-year to ₹1,942 crore, while housing and LAP loans grew 24% to ₹2,780 crore. The company said it had successfully integrated its newly acquired gold loan portfolio during the quarter and rolled out ‘Project Cyclops’ in SME finance. Retailisation touched 98%, crossing its Lakshya 2026 target.

Asset quality remained stable, with gross stage 3 assets at 3.31% and net stage 3 at 0.99%. Consolidated credit cost declined to 2.23%, down from 2.37% in the year-ago quarter, even after making an additional macro-prudential provision of ₹300 crore in rural business finance. Return on assets stood at 2.37%, improving from 2.22% in Q4FY25.

The company also reduced its cost of funds, with weighted average cost of borrowing falling by 16 basis points to 7.68% quarter-on-quarter. In the rural segment, disbursements declined 3% year-on-year to ₹5,618 crore.

Also Read: L&T Finance shares get a downgrade from UBS after sharp run-up factors in positives

However, farmer finance grew 16% to ₹2,200 crore in disbursements, while the personal loan portfolio saw a 41% expansion in book size. Two-wheeler disbursements dropped 19% to ₹2,128 crore.

Sudipta Roy, Managing Director and CEO, said, "In a challenging quarter, our Company remained focused on outcomes and achieved a resilient performance while showcasing our ability to manage market headwinds.

This performance is on the back of our commitment to sourcing creditworthy customers backed by technology and robust credit guardrails, while keeping a strong focus on collection efficiency across businesses."

Also Read: L&T Finance Q4 update: Retail loan book surges 19% YoY to ₹95,100 crore

The results came after the close of the market hours. Shares of L&T Finance Ltd ended at ₹203.25, up by ₹3.60 or 1.80% on the BSE.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsearningsResults Boardroomshare market today