Retail Disbursements (Q4)
₹24,017 Cr
+62% YoY
Highest ever quarterly retail disbursements, driven by growth across all lines of business.
LTFINANCE
Financial Services
2026-04-??
L&T Finance Ltd — Q4 FY26
L&T Finance delivered a strong Q4 FY26 with PAT of ₹87 crore (+27% YoY) and full-year PAT of ₹2,981 crore (+13% YoY, excluding one-time labor code impact).
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
L&T Finance delivered a strong Q4 FY26 with PAT of ₹87 crore (+27% YoY) and full-year PAT of ₹2,981 crore (+13% YoY, excluding one-time labor code impact). Retail disbursements hit a record ₹24,017 crore (+62% YoY), driving retail AUM to ₹1,19,558 crore (+26% YoY). Credit cost moderated to 2.64% (down 19 bps QoQ) aided by AI underwriting tool Cyclops. NIM plus fees improved to 10.47% (+6 bps QoQ). Management guided for FY27 AUM growth of 20%+ and credit cost of 2-2.2% by Q4 FY27, targeting ROA of 2.8% by exit FY27. The new Lakshya 2031 plan targets 20%+ AUM CAGR, credit cost <2%, and ROA of 3-3.2%. Key risk: West Asia conflict could disrupt fertilizer supply and impact rural portfolio quality.
Key Numbers
Retail AUM
₹1,19,558 Cr
+26% YoY
Retail book growth supported by strong disbursement momentum and focus on risk-calibrated growth.
Credit Cost
2.64%
-19 bps QoQ
Moderation due to structural credit policy measures and early benefits from Cyclops implementation.
Customer Additions (Q4)
8.3 Lakh
Highest ever
New customer additions driven by expansion into new villages and multi-product branches.
Management Guidance
AUM growth of 20%+ in FY27
Management expects sustained momentum with AUM growth exceeding 20% supported by robust consumer demand across urban finance, gold loans, and rural franchise.
Management guidance growthCredit cost to decline to 2-2.2% by Q4 FY27
Credit cost expected to trend lower as newer portfolios season and AI underwriting frameworks mature, targeting 2-2.2% by exit Q4 FY27.
Management guidance marginsROA of at least 2.8% by Q4 FY27
Targeting return on assets of at least 2.8% by the last quarter of FY27, driven by operating leverage and lower credit costs.
Management guidance marginsNIM plus fees to remain in 10-10.5% range
Management expects NIM plus fees to remain stable in the guided range of 10-10.5% for FY27.
Management guidance marginsKey Risks
West Asia conflict impact on rural portfolio
Geopolitical tensions could disrupt fertilizer supply for the kharif season, potentially affecting agricultural yields and rural loan performance.
medium · management_commentaryEl Niño and monsoon uncertainty
Possibility of El Niño conditions during the monsoon season could impact rural income and loan repayments.
medium · management_commentaryIT sector job losses affecting unsecured lending
Analyst raised concern that slowing hiring and wage growth in IT/financial services could impact two-wheeler and personal loan portfolios. Management acknowledged but downplayed near-term risk.
medium · analyst_questionECL model refresh may increase provisioning burden
The ECL model refresh increased stage-1 provision coverage from 0.52% to 0.80%, which could pressure credit cost if portfolio growth accelerates.
low · data_observationNotable Quotes
We have concluded FI26 with our highest ever annual profit after tax of rupees 3,03 crores up by 14% year-on-year before a one-time impact of labor code.
Our portfolio management engine Nostradamus which is in two wheel is already giving us measurable benefits. We're implementing it in personal loans as well.
We will attempt a book growth CAGR of 20% plus over the Lakshya period. We'll endeavor to drive credit cost down to a level of 2% or less.
Frequently Asked Questions
What was L&T Finance's revenue in Q4 FY26?
L&T Finance reported revenue of — in Q4 FY26, representing a — change compared to the same quarter last year.
What guidance did L&T Finance management give for FY27?
AUM growth of 20%+ in FY27: Management expects sustained momentum with AUM growth exceeding 20% supported by robust consumer demand across urban finance, gold loans, and rural franchise. Credit cost to decline to 2-2.2% by Q4 FY27: Credit cost expected to trend lower as newer portfolios season and AI underwriting frameworks mature, targeting 2-2.2% by exit Q4 FY27. ROA of at least 2.8% by Q4 FY27: Targeting return on assets of at least 2.8% by the last quarter of FY27, driven by operating leverage and lower credit costs. NIM plus fees to remain in 10-10.5% range: Management expects NIM plus fees to remain stable in the guided range of 10-10.5% for FY27.
What are the key risks for L&T Finance in FY27?
Key risks include West Asia conflict impact on rural portfolio — Geopolitical tensions could disrupt fertilizer supply for the kharif season, potentially affecting agricultural yields and rural loan performance.; El Niño and monsoon uncertainty — Possibility of El Niño conditions during the monsoon season could impact rural income and loan repayments.; IT sector job losses affecting unsecured lending — Analyst raised concern that slowing hiring and wage growth in IT/financial services could impact two-wheeler and personal loan portfolios. Management acknowledged but downplayed near-term risk.; ECL model refresh may increase provisioning burden — The ECL model refresh increased stage-1 provision coverage from 0.52% to 0.80%, which could pressure credit cost if portfolio growth accelerates..
Did L&T Finance meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full L&T Finance Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.