L&T Finance Q4 FY26 Results: PAT ₹807 Crore (+26.8% YoY), Record Disbursements ₹83,213 Crore FY26

Mon Apr 27 2026

L&T Finance Q4 FY26 results are strong, with the L&T Group’s retail-focused NBFC reporting a 26.79% year-on-year increase in consolidated net profit to ₹806.63 crore, compared to ₹636.17 crore in Q4 FY25. L&T Finance Q4 PAT growth was driven by NII expansion of 24.8% YoY, a sharp improvement in gross stage-3 (GS3) assets, and record disbursement momentum across retail finance segments.

L&T Finance Q4 achieved its highest-ever annual retail disbursements of ₹83,213 crore in FY26, growing 39% year-on-year. In Q4 alone, L&T Finance disbursements reached a record ₹24,107 crore, up 62% quarter-on-quarter. L&T Finance Q4 disbursement growth was powered by two-wheeler finance, gold loans, personal loans, and rural business finance, all fast-growing, high-yield segments. L&T Finance Q4 GS3 assets improved to 2.88% from 3.29% a year ago, demonstrating meaningful asset quality improvement.

L&T Finance Q4 board recommended a final dividend of ₹2.75 per equity share for FY26. L&T Finance Q4 also achieved its lowest-ever borrowing cost, weighted average cost of borrowing (WACB) of 7.17% for the quarter and 7.35% for the full year. L&T Finance Q4 ROA of 2.39% and ROE of 11.33% for FY26 show improving profitability metrics, though both remain below long-term targets.

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L&T Finance Q4 FY26 Results Date and Dividend

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L&T Finance Q4 FY26 results were declared on April 24, 2026. L&T Finance Limited is a systemically important NBFC and a subsidiary of Larsen & Toubro (L&T Group). L&T Finance Q4 follows a “Lakshya 2026” strategy of transitioning from a diversified lender to a pure retail finance company, targeting ROE of 18% by FY26-end.

Company	Q4 Results Date	Status
TCS	April 9, 2026	Declared
HDFC Bank	April 19, 2026	Declared
L&T Finance	April 24, 2026	Declared
Bajaj Finance	April 28, 2026	Expected

Why L&T Finance Q4 FY26 Results Matter

L&T Finance Q4 marks the culmination of the “Lakshya 2026” transformation strategy, the company’s multi-year programme to exit wholesale and project finance and build a pure retail finance franchise. L&T Finance Q4 39% FY26 disbursement growth with improving GS3 assets is the clearest evidence yet that this strategy is working. L&T Finance Q4 results will determine whether the “retailisation” mission is complete and whether FY27 can be a year of ROE expansion.

L&T Finance Q4 is also a bellwether for India’s two-wheeler and rural credit markets. L&T Finance Q4 two-wheeler finance, one of the fastest-growing segments, tracks India’s two-wheeler sales, which hit a record in FY26. L&T Finance Q4 gold loan expansion provides high-yield, short-duration income that complements the longer-duration retail book.

L&T Finance Q4 FY26, Actual Financial Results

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L&T Finance Q4 FY26 consolidated PAT of ₹807 crore was above the street estimate range of ₹700–780 crore. L&T Finance Q4 NII growth of 24.8% YoY is particularly impressive, it outpaces loan book growth, implying NIM expansion. L&T Finance Q4 GS3 improvement to 2.88% (from 3.29%) is a direct result of better credit selection in the retail franchise and improved collections efficiency.

Metric	Q4 FY25 (Base)	Q4 FY26 Actual	YoY Change	Notes
Consolidated PAT (₹ Cr)	636.17	806.63	+26.79%	Beat est. ₹700–780 Cr
NII Growth (YoY)	%	N/A	24.8%	NIM expansion
Gross Stage-3 (GS3)	3.29%	2.88%	↓41 bps	Asset quality improving
Q4 Disbursements (₹ Cr)	~14,880	24,107	+62% QoQ	Record quarterly
FY26 Disbursements (₹ Cr)	59,793	83,213	+39%	Record annual
Final Dividend (₹/share)	N/A	2.75	N/A	FY26 recommendation

L&T Finance Q4 ROE of 11.33% for FY26 is below the long-term 18% target committed under Lakshya 2026. L&T Finance Q4 management commentary on ROE expansion guidance for FY27, and the timeline to reach 18%, will be the most important disclosure. L&T Finance Q4 net credit cost of 2.54% for FY26 (improving to 2.64% in Q4) and WACB of 7.17% are positive but must continue improving.

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5 Key Factors That Will Drive L&T Finance Q4 FY26 Performance

Two-Wheeler Finance, India’s EV and Premium 2W Boom

L&T Finance Q4 two-wheeler finance segment benefits from India’s record two-wheeler sales in FY26, including a surge in premium motorcycles (125cc+) and electric scooters. L&T Finance Q4 two-wheeler loans carry high yields (14–18%) and relatively short tenures (2–4 years), improving the portfolio yield and reducing duration risk. L&T Finance Q4 digital origination for two-wheeler loans at point-of-sale provides competitive advantages over traditional field-based lenders.

Gold Finance, Counter-Cyclical High Yield Segment

L&T Finance Q4 gold loan expansion provides high-yield (18–24% annualised), short-duration (3–6 months) income that diversifies the retail book. L&T Finance Q4 gold loans are over-collateralised by gold jewellery, resulting in near-zero credit losses historically. L&T Finance Q4 gold loan growth capitalises on India’s cultural affinity for gold as collateral during seasonal or emergency cash needs.

Lowest-Ever Borrowing Cost at 7.17% WACB

L&T Finance Q4 achieved its historically lowest quarterly WACB of 7.17%, reflecting improved credit ratings from L&T Group parentage, competitive market-linked NCD pricing, and benefits from RBI rate cuts. L&T Finance Q4 low funding cost directly expands NIM when combined with high-yield retail lending. Every 10 bps reduction in WACB adds approximately ₹80–90 crore to annual NII at the current book size.

GS3 Improvement, Credit Quality Repair

L&T Finance Q4 GS3 ratio improvement from 3.29% to 2.88% YoY signals that the credit quality repair of the retail portfolio initiated post-COVID is largely complete. L&T Finance Q4 net stage-3 (NS3) stability at 0.96% means provision cover on gross NPAs is robust. L&T Finance Q4 improving GS3 trend directly reduces credit cost requirements, boosting PAT.

Record ₹24,107 Crore Q4 Disbursements, Revenue Visibility

L&T Finance Q4 record disbursements of ₹24,107 crore in Q4 alone, the equivalent of nearly 30% of the full-year FY25 total in a single quarter, provides exceptional near-term revenue visibility. L&T Finance Q4 loan disbursements originate interest income from the next quarter, meaning the Q1 FY27 NII growth is already partially “baked in” by Q4 FY26 disbursement volumes.

5 Risks to Watch in L&T Finance Q4 FY26

ROE Still Below 18% Lakshya 2026 Target

L&T Finance Q4 full-year ROE of 11.33% is substantially below the 18% ROE target committed under the Lakshya 2026 strategic programme. L&T Finance Q4 management has not yet provided a clear revised timeline for the 18% ROE achievement. If ROE improvement stalls in FY27, it would indicate structural limitations in the pure retail finance model, specifically credit cost normalisation overriding NIM and volume gains.

Two-Wheeler Finance NPA Risk

L&T Finance Q4 two-wheeler loans carry materially higher default risk than secured loans (home, auto), especially in the entry-level (sub-₹1 lakh) segment. L&T Finance Q4 two-wheeler GS3 can spike quickly if rural incomes disappoint or fuel prices rise sharply. Any two-wheeler NPA deterioration would compress L&T Finance Q4 credit cost improvements.

NIM Pressure from Rate Cuts

L&T Finance Q4 NIM expansion could face headwinds as RBI continues to cut rates. L&T Finance Q4 fixed-rate retail loans reprice slowly at lower rates on new origination, compressing the new loan yield without immediate reduction in existing liability costs. L&T Finance Q4 WACB at record lows may not fall further, meaning rate cuts benefit borrowers more than L&T Finance Q4 itself.

Regulatory NBFC Scrutiny

L&T Finance Q4 operates in a sector under RBI’s close scrutiny for risk management, liquidity coverage, and capital adequacy. L&T Finance Q4 rapid disbursement growth (39% YoY) attracts regulatory attention, fast-growing NBFCs historically face supervisory questions about underwriting standards and portfolio quality at high disbursement rates.

L&T Group Distraction Risk

L&T Finance Q4 strategic decisions are influenced by L&T Group’s overall capital allocation priorities. If L&T Group decides to divest its NBFC stake, as it has periodically considered, any ownership transition could create management uncertainty. L&T Finance Q4 franchise strength is partly anchored in L&T Group’s brand and balance sheet access.

L&T Share Price and Analyst Ratings

L&T Finance Q4 analysts broadly welcome the PAT beat and disbursement record, but the ROE gap versus 18% target remains the central concern. Most maintain BUY/ADD ratings with targets of ₹200–225.

Brokerage	Rating	Target	Thesis
ICICI Securities	BUY	225	GS3 2.88%, RoA 2.39% improving quarterly
HDFC Securities	BUY	215	Disbursements +62% QoQ N/A structural acceleration
Kotak Institutional	ADD	200	NII +24.8%, ROE path to 18% key watch
JM Financial	BUY	220	Two-wheeler + gold finance mix high yield
Emkay	BUY	210	Lakshya 2026 retailisation validated by Q4

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Conclusion

L&T Finance Q4 FY26 results validate the Lakshya 2026 strategy, 26.8% PAT growth, record ₹83,213 crore FY26 disbursements, improving GS3 at 2.88%, lowest-ever WACB, and ₹2.75 dividend. L&T Finance Q4 demonstrates that the pure retail NBFC model is working. The ROE gap (11.33% vs 18% target) and NIM risk from rate cuts are the watch items for FY27. L&T Finance Q4 investors will await clarity on the ROE expansion timeline.

Disclaimer: Investment in the share market is subject to risk. This article is for informational and educational purposes only and does not constitute investment advice. All financial data is sourced from publicly available NSE/BSE filings, exchange announcements, and company investor relations pages. Verify all numbers before investing. Consult a SEBI-registered advisor before making investment decisions.

For more Q4 FY26 results analysis, visit Univest Blogs.

Frequently Asked Questions

What was L&T Finance Q4 FY26 net profit?

L&T Finance Q4 FY26 consolidated PAT was ₹806.63 crore, up 26.79% year-on-year from ₹636.17 crore in Q4 FY25, beating analyst estimates of ₹700–780 crore.

What was L&T Finance Q4 FY26 disbursements?

L&T Finance Q4 FY26 disbursements were a record ₹24,107 crore, up 62% quarter-on-quarter. Full-year FY26 disbursements were ₹83,213 crore (+39% YoY), the highest ever.

What dividend did L&T Finance declare for FY26?

L&T Finance Q4 FY26 board recommended a final dividend of ₹2.75 per equity share for FY26.

What is L&T Finance’s GS3 ratio in Q4 FY26?

L&T Finance Q4 FY26 gross stage-3 (GS3) ratio was 2.88%, improving from 3.29% in Q4 FY25. Net stage-3 (NS3) was stable at 0.96%.

What is the Lakshya 2026 strategy for L&T Finance?

Lakshya 2026 is L&T Finance’s multi-year strategic plan to transition from a diversified lender (including wholesale/infrastructure finance) to a pure retail finance company focused on two-wheelers, gold, personal loans, and rural business finance, targeting 18% ROE.

What were L&T Finance Q3 FY26 results?

In Q3 FY26, L&T Finance reported credit costs of 2.83% (higher than Q4’s 2.64%), consistent with the improvement trajectory. Specific Q3 PAT figures are on the Univest Screener.

When did TCS and Infosys declare Q4 FY26 results?

TCS declared Q4 FY26 results on April 9, 2026. Infosys declared Q4 FY26 results on April 23, 2026. Full analysis is on Univest Blogs.

When did TCS and Infosys declare Q4 FY26 results?

TCS declared Q4 FY26 results on April 9, 2026. Full analysis at Univest Blogs, TCS Q4 FY26. Infosys declared Q4 FY26 results on April 23, 2026. Full analysis at Univest Blogs, Infosys Q4 FY26.

Is L&T Finance a good long-term investment?

L&T Finance has strong L&T Group parentage, improving credit quality, and a pure retail finance strategy with record disbursements. Long-term suitability depends on ROE trajectory and individual risk appetite. Consult a SEBI-registered financial advisor.