Retail disbursements rose sharply by 62% year-on-year (YoY) to Rs 24,107 crore in Q4FY26, compared with Rs 14,899 crore in the corresponding quarter last year, reflecting strong momentum across key lending segments.

Growth in secured lending was led by the two-wheeler finance segment, with disbursements rising 58% YoY to Rs 2,930 crore. Gold finance disbursements stood at Rs 2,779 crore.

Personal loans nearly doubled, rising 98% YoY to Rs 3,786 crore, supported by partnerships with large technology platforms. Rural business finance disbursements grew 41% YoY to Rs 7,208 crore.

On the profitability front, the company reported a sequential improvement of 6 basis points in Net Interest Margin (NIM) plus fees, which stood at 10.47% in Q4 FY26. Asset quality also showed improvement, with credit costs declining to 2.64% from 2.83% in the previous quarter.

Return ratios strengthened during the period, with Return on Equity (RoE) rising to 11.71% from 10.13% a year ago. Return on Assets (RoA) improved by 18 basis points YoY to 2.40% in Q4FY26, up from 2.22% in Q4FY25.

The company reported a steady improvement in consolidated asset quality on a year-on-year (YoY) basis. Gross Stage 3 (GS3) ratio declined to 2.88% in Q4FY26 from 3.29% in Q4FY25.

Net Stage 3 (NS3) stood marginally lower at 0.96% in Q4FY26 compared to 0.97% in the corresponding quarter last year, indicating stable net asset quality performance.

The company reported a robust performance for FY26 on a consolidated basis, led by strong growth across retail segments and improved profitability metrics.

Retailisation remained high, with retail loans comprising 98% of the overall loan book. The company posted its highest-ever annual profit after tax (PAT) (before the impact of Labour Code considered in Q3FY26) at Rs 3,003 crore.

The retail loan book grew 26% year-on-year (YoY) to Rs 1,19,508 crore, while the overall consolidated book rose 25% YoY to Rs 1,21,728 crore.

Retail disbursements for the year increased 39% YoY to Rs 83,213 crore, compared with Rs 60,040 crore in FY25. The company maintained a steady run-rate in disbursements throughout the year, supported by GST 2.0-led efficiencies and strong festive demand, driving growth across its diversified product portfolio. Key contributors included two-wheeler finance, gold finance, personal loans, and rural business finance.

Asset quality improved, with credit costs declining to 2.54% following the utilisation of macro-prudential provisions in the first half of the year.

Profitability metrics remained stable, with Return on Assets (RoA) at 2.39% (before Labour Code impact), while Return on Equity (RoE) improved to 11.33% from 10.87% in FY25.

The company also accelerated its expansion in gold finance, ending Q4FY26 with 330 branches, including the addition of 200 new branches since acquiring the business in June 2025.

In the personal loans segment, disbursements scaled up significantly through partnerships with large technology platforms. These partnerships contributed 38% to total personal loan disbursements in Q4FY26, up from 22% in Q4FY25, and accounted for 38% in FY26 compared with 10% in FY25.

Sudipta Roy, Managing Director & CEO, LTF, said, 'FY26 has been a good year for us, despite significant headwinds in our microfinance business in the initial months of the year and the end of the year closing with geopolitical tensions. Through the course of the year, we remained steadfast in our approach'tightening credit and risk administration frameworks, strengthening collections infrastructure, accelerating our AI-led technology transformation and continuously focusing on growth across all our business lines.

On the microfinance business, our focus was on navigating the cycle with prudence and our efforts have yielded results, with business parameters across both disbursements and collection efficiencies now reverting to near pre-crisis levels, giving us confidence that FY27 will be a stable and productive year for this segment.

FY26 also marks the successful completion of our Lakshya 26 strategic plan, achieving most of our stated objectives even amid volatility in the credit environment. This reflects the resilience of our diversified franchise, disciplined execution, and the strength of the digital and analytics capabilities that we built during the plan period. As we embark on our next five-year strategic roadmap, Lakshya 31, we are setting ourselves ambitious and measurable targets to drive consistent growth with improved profitability.

While global geopolitical uncertainties persist, we remain confident that the solid foundation established during the Lakshya 26 period will enable us to deliver steady outcomes and create long-term value for all stakeholders and truly transform L&T Finance into a Risk-first, Technology-first, Multi-product Retail Financier of Choice.'

The company has recommended a final dividend of Rs 2.75 per equity share (face value Rs 10) for FY26, subject to shareholder approval at the AGM. The dividend will be paid within 30 days of approval.

The board also approved the appointment of Sachinn Joshi as Whole-time Director for two years and Raju Dodti for three years, both subject to regulatory and shareholder approvals.

L&T Finance is a leading non-banking financial company (NBFC), offering a range of financial products and services.

Shares of L&T Finance shed 0.56% to end at Rs 290.45 on the BSE.