L&T Finance Shares Rise Over 3% As Q1FY26 Profit Climbs to ₹701 Crore

Mumbai, July 21, 2025: Shares of L&T Finance Limited (NSE: LTF, BSE: 533519) were trading 3.20% higher at ₹209.66 as of 11:30 AM Monday, following the release of its robust Q1 FY26 earnings and stable asset quality. The stock opened at ₹201.90, rising from its previous close of ₹203.15, according to NSE data.

Consolidated Q1FY26 Results: Profit Up 2.3% YoY

L&T Finance reported a consolidated net profit of ₹700.84 crore for the quarter ended 30 June 2025, marking a 2.28% year-on-year (YoY) increase from ₹685.25 crore in Q1 FY25. This consistent performance in profitability and growth in interest income underscores the company’s focus on building a strong retail franchise.

Key consolidated financials (₹ in crore):

Metric	Q1FY26	Q4FY25	Q1FY25	YoY %	QoQ %
Revenue from Operations	4,259.57	4,022.92	3,784.40	12.58%	5.88%
Profit Before Tax (PBT)	943.22	805.52	922.27	2.27%	17.11%
Net Profit (PAT)	700.84	635.84	685.25	2.28%	10.21%
EPS (Basic) (₹)	2.81	2.55	2.75	–	–

Standalone Q1FY26 Results

On a standalone basis, L&T Finance reported a net profit of ₹694.09 crore for Q1 FY26, compared to ₹678.92 crore in Q1 FY25. Total income stood at ₹4,257.07 crore, up from ₹3,782.65 crore in the year-ago period.

Segment and Operational Highlights

• Interest Income witnessed a robust rise to ₹3,914.50 crore, marking a 13.36% increase YoY.
• Fee and Commission Income stood at ₹258.97 crore, a slight decrease from ₹290.69 crore YoY.
• Net Gain on Fair Value Changes surged by 109.72% YoY to ₹86.10 crore, reflecting favourable market movements.
• Impairment on Financial Instruments increased to ₹542.30 crore from ₹390.18 crore YoY, indicating a conservative provisioning approach to maintain asset quality.

Capital Market & Balance Sheet Indicators

• Debt-to-equity ratio: 3.66 (consolidated) | 3.70 (standalone)
• Net Worth: ₹25,585.45 crore (consolidated)
• Stage 3 Net NPA: Improved to 0.99%, demonstrating stable and improving asset quality.
• Total Market Cap: ₹51,877.47 crore
• Free Float Market Cap: ₹16,640.57 crore

Major Corporate Updates

• On 9 June 2025, L&T Finance successfully completed the slump sale acquisition of the gold loan business of Paul Merchants Finance Pvt Ltd for ₹711 crore. This strategic move marks its entry into the gold loan segment, adding a secured, high-yield product to its portfolio. The acquisition includes 130 branches and approximately 700 employees, and the company has already recorded ₹1,530 crore in gold finance disbursements in Q1 FY26 alone.
• During the quarter, the company also issued and fully utilised ₹4,925 crore via Non-Convertible Debentures (NCDs) under private placement, confirming their utilisation as per the intended purposes.
• L&T Finance allotted 28.43 lakh equity shares to employees under its Employee Stock Ownership Plans (ESOPs) during Q1.

Management Commentary

Sudipta Roy, Managing Director & CEO, said:

“Our consistent performance in profitability and growth in interest income reflects our continued focus on building a strong retail franchise. With stable asset quality and a strong balance sheet, we are well-positioned to deliver sustainable growth.”

Market Performance Snapshot (as of 11:30 AM)

Metric	Value
Last Traded Price	₹209.66
Day High / Low	₹209.70 / ₹201.31
VWAP	₹205.73
Buy Quantity	9.85 lakh
Sell Quantity	14.75 lakh
Traded Volume (Shares)	57.72 lakh
Traded Value	₹118.74 crore

Road Ahead

L&T Finance appears well-positioned for continued growth, supported by its expanding retail portfolio, entry into the gold loan segment, and improving asset quality. The successful integration of the Paul Merchants gold loan business is expected to further strengthen its secured lending mix. With robust capital adequacy, a stable debt profile, and a strong Q1 performance, the company is likely to maintain momentum in the coming quarters. Investor focus will remain on sustained profitability, further reduction in NPAs, and progress on retail targets.

Company Overview

L&T Finance Limited, formerly known as L&T Finance Holdings, is a listed non-banking financial company (NBFC) under the L&T Group. It is part of the NIFTY Midcap 100 and is primarily engaged in retail finance, including consumer loans, rural finance, and infrastructure financing. The company is listed on both NSE and BSE since August 12, 2011.

REF: https://nsearchives.nseindia.com/corporate/naguiyer_18072025195515_NSEBSEINTIMATION.pdf

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations