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L&T Finance Q2 retail disbursements rise 25% to ₹18,850 crore

The company reported a rise in retailisation to 98% in Q2 FY26, compared with 96% in Q2 FY25. Retail disbursements for Q2 FY26 are estimated at ₹18,850 crore, marking a growth of around 25% year-on-year against ₹15,092 crore in Q2 FY25. Shares of L&T Finance Ltd ended at ₹262.35, up by ₹3.80, or 1.47%, on the BSE.

L&T Finance | The non-bank lender may report an 18% growth in advances over financial year 2024 - 2026, according to HDFC Securities. It called the stock's valuations "reasonable" over possible asset quality hiccups in wholesale lending though the focus on this business is failing. It recommends buing the stock in the ₹153 - ₹170 range for a price target of ₹219 till next Diwali. Microfinance or farm equipment stress, increase in share of retail loans by peers, higher borrowing costs are some key risks.

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Published Oct 03, 2025 | 9:14 AM GMT-04

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Retail-focused non-bank lender L&T Finance Limited (formerly known as L&T Finance Holdings Limited) on Friday (October 3) said it has released its provisional business update for the quarter ended September 30, 2025.

Segment-wise, retail disbursements stood at ₹6,310 crore in rural business finance (₹5,435 crore in Q2 FY25), ₹1,650 crore in farmer finance (₹1,782 crore), ₹8,140 crore in urban finance (₹6,285 crore), ₹1,460 crore in SME finance (₹1,244 crore), ₹980 crore in gold finance (nil in Q2 FY25), and ₹310 crore from acquired portfolio (₹346 crore).

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

The company’s retail loan book was estimated at ₹1,04,500 crore as of September 30, 2025, reflecting a growth of about 17% year-on-year from ₹88,975 crore in September 2024.

First Quarter Results

L&T Finance 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 shares close in on their 52-week high as a major overhang is lifted

Shares of L&T Finance Ltd ended at ₹262.35, up by ₹3.80, or 1.47%, on the BSE.