L&T Finance Q1 FY26: PAT ₹701 cr, income ₹4,260 cr

Key takeaways from the June quarter

L&T Finance Ltd reported its Q1 FY26 performance for the quarter ended June 2025, showing a sequential improvement in profit and a double-digit rise in income year-on-year. The company reported profit after tax (PAT) of about ₹701 crore for the quarter, alongside total income of ₹4,259.6 crore. It also disclosed an improvement in asset-quality indicators versus FY25, with gross stage 3 and net stage 3 ratios moving lower. Retail disbursements and retail book growth were highlighted as key operating drivers during the quarter. The results also included capital and liquidity metrics, including CRAR and liquidity coverage ratio.

Reported headline numbers: income, profit, EPS

For Q1 FY26, L&T Finance reported total income of ₹4,259.6 crore, up 15.8% quarter-on-quarter (QoQ) from ₹3,677.3 crore in Q4 FY25. On a year-on-year (YoY) basis, total income was up 12.6% from ₹3,784.6 crore in Q1 FY25. Profit before tax (PBT) for the quarter was ₹943.2 crore, up 35.9% QoQ from ₹694.0 crore and up 2.3% YoY from ₹922.3 crore. PAT was ₹700.8 crore, up 26.7% QoQ from ₹553.0 crore and up 2.3% YoY from ₹685.3 crore. Earnings per share (EPS) was reported at ₹2.81, up from ₹2.20 in the previous quarter and ₹2.70 in the year-ago quarter.

Expenses and operating performance snapshot

The company reported total expenses of ₹3,317 crore in Q1 FY26. This was up 15.9% YoY (Q1 FY25: ₹2,472.2 crore) and up 1.5% QoQ, as stated in the results summary. In the quarterly financial table shared in the dataset (all figures in ₹ crore unless per-share values), total operating expense stood at ₹3,226.64 crore for the June quarter versus ₹3,494.50 crore in the March quarter and ₹1,355.79 crore in the year-ago June quarter. The same table showed depreciation/amortisation at ₹40.69 crore for the quarter.

The quarterly table also reported operating income at ₹946.86 crore in the June quarter (versus ₹1,276.60 crore in March and ₹2,387.76 crore in the year-ago June quarter). Net income in that table was ₹701.10 crore for the quarter (versus ₹806.63 crore in March and ₹685.51 crore in the year-ago June quarter). The dataset also included a separate “Net Profit 809 QoQ 9.64%” line, but no accompanying definition was provided alongside it.

Net interest income and margin disclosures

L&T Finance reported net interest income (NII) of ₹2,278.8 crore in Q1 FY26, up 8% YoY from ₹2,101.2 crore in Q1 FY25. It also reported “Net Interest Margin plus fees” at 10.22% for the quarter, compared with 11.08% in the June 2024 quarter, as per the text provided. In addition, the company reported a net profit margin of 16.45% for Q1 FY26.

Asset quality, capital and liquidity metrics

On asset quality, the company reported gross stage 3 at 3.31% versus 3.92% in FY25. Net stage 3 was reported at 0.99% versus 1.25% in FY25. On capital adequacy, CRAR was disclosed at 20.68%. Liquidity coverage ratio was reported at 224%. The company also disclosed net worth at ₹25,585.5 crore.

Loan book, retail disbursements, ROA and ROE

The company said its consolidated loan book rose 15% year-on-year to a record ₹1,02,314 crore by the end of the June 2025 quarter. Retail loan book was reported at ₹99,816 crore, up 18% year-on-year. Retail disbursements during the quarter were reported at ₹17,522 crore, up 18% year-on-year. The dataset also cited consolidated ROA at 2.37% (up 15 basis points sequentially) and consolidated ROE at 10.86% (up 73 basis points QoQ).

Stock move, market cap and shareholding details

As per the text provided, L&T Finance shares closed around 2% higher at ₹203.25 on BSE on 18 July. Market capitalisation was reported at ₹50,700 crore. The same note stated the stock’s price performance of 182% over three years, 56% over two years, 42% over six months, and 24% over three months. The company also disclosed promoter holding at 66.16% as of end-June 2025.

Key figures at a glance

Market impact: what investors will likely track

The reported QoQ improvement in PAT and EPS, alongside higher total income, provides a clearer near-term earnings trajectory compared with the immediately preceding quarter. At the same time, the dataset flags a decline in “net interest margin plus fees” to 10.22% from 11.08% in the year-ago quarter, making pricing, funding costs, and product mix key variables to watch in subsequent updates. Asset quality metrics improved versus FY25, with gross stage 3 and net stage 3 both lower, and capital and liquidity ratios remaining disclosed at 20.68% CRAR and 224% liquidity coverage. For market participants, the combination of loan book growth (15% YoY) and retail disbursement growth (18% YoY) is an operating indicator, while margin and credit performance will determine how that growth translates into profitability.

Why the quarter matters: a grounded view

The results place emphasis on retail-led growth and reported balance-sheet resilience, supported by net worth of ₹25,585.5 crore and disclosed capital and liquidity buffers. The quarter’s sequential profit improvement was also accompanied by higher disbursement activity and a higher reported ROA and ROE than the prior quarter, based on the figures provided. Separately, the dataset also included a reference to engineering major Larsen & Toubro reporting consolidated net profit of ₹3,617 crore for the June quarter of FY26, and an order-related figure of ₹94,453 crore with 33% YoY growth, but those numbers pertain to L&T (the parent group’s engineering business) and not L&T Finance.

Conclusion

L&T Finance’s Q1 FY26 update shows higher total income, a QoQ rise in PAT to about ₹701 crore, and improved stage-3 asset quality ratios versus FY25, alongside stronger retail disbursements and a larger retail book. The next set of updates investors will track, based on the disclosures in this quarter, are trends in NII growth, the reported margin-plus-fees metric, and any changes in stage-3 ratios as the loan book expands.