L&T Finance FY26 PAT ₹3,003 crore; retailisation at 98%

L&T Finance Ltd. (LTF), formerly known as L&T Finance Holdings Ltd., reported its highest-ever consolidated profit after tax (PAT) for the year ended March 31, 2026, supported by steady retail-led growth and higher disbursements. The company said FY26 PAT stood at ₹3,003 crore before a one-time impact linked to the New Labour Code, while PAT after the impact was ₹2,981 crore. Retailisation in FY26 reached 98% of the book, highlighting the company’s shift toward retail lending as the core growth driver.

FY26 profitability: record PAT, with one-time Labour Code impact

For FY26, LTF reported consolidated PAT of ₹3,003 crore before the one-time Labour Code impact, up 14% year-on-year (YoY). After factoring in the one-time impact, FY26 PAT was ₹2,981 crore, up 13% YoY. The company positioned this performance as its highest-ever annual profitability level.

The Labour Code item featured in FY26 results because the company had already highlighted a one-time impact during Q3 FY26. In Q3 FY26, LTF reported core PAT of ₹760 crore before the one-time Labour Code provision and PAT of ₹739 crore after the impact.

Q4 FY26: PAT jumps 27% YoY as retail disbursements accelerate

In the fourth quarter ended March 31, 2026 (Q4 FY26), LTF reported consolidated PAT of ₹807 crore, up 27% YoY. The quarter also saw the company post its highest-ever quarterly retail disbursements of ₹24,107 crore, up 62% YoY.

The Q4 numbers added momentum to a year in which LTF emphasised both book growth and scale-up in retail disbursements. The company’s full-year retail disbursement figure of ₹83,213 crore was described as the highest-ever for LTF.

Retailisation reaches 98% as the retail book expands

LTF said retailisation reached 98% of the book in FY26. Its retail book for FY26 stood at ₹1,19,508 crore, up 26% YoY. This expansion in retail book size is central to the company’s stated strategy of building a multi-product retail franchise.

In Q3 FY26, the retail book size stood at ₹1,11,990 crore, up 21% YoY. The company also reported that the consolidated loan book in Q3 FY26 grew 20% YoY to ₹1,14,285 crore.

FY26 disbursements: annual record and a stronger Q4 finish

For FY26, LTF reported annual retail disbursements of ₹83,213 crore, up 39% YoY. The Q4 retail disbursements at ₹24,107 crore (up 62% YoY) indicate stronger run-rate in the closing quarter.

In Q3 FY26, quarterly retail disbursements were ₹22,701 crore, up 49% YoY, which the company said was also a record at that time. The progression from ₹22,701 crore in Q3 to ₹24,107 crore in Q4 shows acceleration in quarterly retail disbursement volumes.

Q3 FY26: PAT, book growth, and product-level disbursement highs

For the quarter ended December 31, 2025 (Q3 FY26), LTF reported core PAT of ₹760 crore before the one-time Labour Code impact, up 21% YoY. After the one-time impact, PAT was ₹739 crore, up 18% YoY.

LTF also reported all-time high disbursements in specific product lines in Q3 FY26. Two-wheeler finance disbursements were ₹3,217 crore, up 33% YoY, while farmer finance disbursements were ₹2,783 crore, up 12% YoY.

Q1 FY26: PAT of ₹701 crore, book hits ₹1,02,314 crore

For the first quarter ended June 30, 2025 (Q1 FY26), LTF reported consolidated PAT of ₹701 crore, up 10% quarter-on-quarter and 2% YoY. During the quarter, it reported its highest-ever consolidated book at ₹1,02,314 crore, up 15% YoY.

The retail book size in Q1 FY26 stood at ₹99,816 crore, up 18% YoY, while quarterly retail disbursement was ₹17,522 crore, up 18% YoY. LTF also reported return on assets (ROA) of 2.37% for the consolidated book, an improvement of 15 basis points from the previous quarter.

Income and revenue details reported for Q1 FY26

For Q1 FY26, LTF reported consolidated total income of ₹4,259.60 crore, compared with ₹3,784.61 crore in Q1 FY25. Revenue from operations rose 13.4% YoY to ₹3,914.50 crore from ₹3,452.62 crore.

The company also reported consolidated net profit of ₹701.10 crore for Q1 FY26 compared with ₹685.51 crore in the year-ago quarter. Sequentially, profit rose from ₹636.17 crore in Q4 FY25.

Technology and strategy: shift to a risk-first, tech-first retail lender

LTF said it is accelerating technology deployment to transform into an AI-enabled lender. It also described its direction as becoming a risk-first, tech-first, multi-product retail financier.

Alongside the strategy narrative, the company cited macro factors it believes supported consumption and growth during the period, including GST 2.0, good monsoons, and a series of repo rate cuts.

Key numbers at a glance

Market impact: what the numbers signal for investors

The FY26 and quarterly disclosures underline two clear themes: record profitability and a continued pivot toward retail lending. The jump in Q4 retail disbursements and the full-year disbursement record indicate that growth was driven by origination volumes, not only by balance-sheet expansion.

For investors tracking NBFCs, retailisation at 98% is a key operating signal because it reflects portfolio composition and strategic focus. The one-time Labour Code impact is also relevant since the company provided both pre-impact and post-impact PAT figures for FY26 and Q3 FY26.

Analysis: why FY26 stands out in LTF’s retail transition

LTF’s FY26 results combine record annual PAT with material retail book expansion to ₹1,19,508 crore. The growth profile is also visible in the progression of quarterly disbursements from ₹17,522 crore in Q1 FY26 to ₹22,701 crore in Q3 FY26 and ₹24,107 crore in Q4 FY26.

The company has tied this performance to its broader transformation agenda, including technology deployment and positioning as an AI-enabled lender. It also flagged that retailisation in Q1 FY26 exceeded its Lakshya 2026 target, a milestone it highlighted as part of the transition to a predominantly retail portfolio.

Dividend and next points to watch

LTF declared a dividend of ₹2.75 per equity share for the financial year ended March 31, 2026. Going ahead, the key datapoints to monitor from subsequent updates would be the sustainability of retail disbursement momentum, any further disclosures around one-time policy impacts, and the pace of technology-led transformation referenced by the company.