Profit before tax (PBT) climbed 31.07% YoY to Rs 943.22 crore in the quarter ended 30th June 2026.

The company's consolidated loan book expanded 27% YoY to Rs 1,29,634 crore as of 30 June 2026 from Rs 1,02,314 crore a year earlier. The retail loan book grew 28% YoY to Rs 1,27,535 crore from Rs 99,816 crore, supported by growth across rural and urban markets with a focus on high-yielding loan products.

Retail disbursements surged 36% YoY to Rs 23,852 crore in Q1 FY27 from Rs 17,522 crore in the year-ago period. Among key segments, personal loan disbursements more than doubled, rising 126% YoY to Rs 4,380 crore, while farmer finance disbursements increased 11% to Rs 2,453 crore.

SME Finance disbursements rose 23% YoY to Rs 1,567 crore, while Gold Finance disbursements climbed 26% to Rs 1,928 crore during the quarter.

The company reported an improvement in its asset quality in Q1 FY27, with both gross and net Stage 3 assets declining on a year-on-year basis.

Gross Stage 3 (GS3) assets stood at 2.86% as of 30 June 2026, compared with 3.31% in the corresponding quarter of the previous year. Net Stage 3 (NS3) assets also improved to 0.90% in Q1 FY27 from 0.99% in Q1 FY26, reflecting continued strengthening in the company's loan portfolio and asset quality.

The company said it continues to strengthen its technology infrastructure by adopting an open-source private cloud, which is expected to significantly reduce costs while supporting its artificial intelligence (AI) and machine learning initiatives. According to the company, the private cloud model is projected to be around 70% cheaper than hyperscale cloud platforms over a five-year total cost of ownership.

Sudipta Roy, managing director & CEO, LTF, said, “Q1FY27 was another quarter where we remained focused on disciplined execution amidst an evolving macroeconomic environment marked by geopolitical uncertainties, inflationary pressures and elevated borrowing costs. Despite these external factors, our diversified retail franchise continued to demonstrate resilience, delivering strong business momentum and healthy book growth in line with the goals of our Lakshya 31 strategic plan.

Our consistent investments in technology, analytics and AI continue to be a key differentiator, both in terms of customer experience as well as credit outcomes. In our bid to transform into an AI-native organization, we are increasingly embedding our proprietary AI ecosystem across the entire lending stack from sourcing and underwriting through our in-house AI credit engine ‘Project Cyclops’ to portfolio monitoring through ‘Project Nostradamus’ and our expanding suite of in-house developed AI copilots and agents. These capabilities are enabling superior credit selection, improved customer experience, faster turnaround times and enhanced operating efficiencies, while strengthening the quality and sustainability of our growth.”

Mumbai-based L&T Finance is a leading non-banking financial company (NBFC), offering a range of financial products and services. On a consolidated basis, the company's PAT for Q4FY26 stood at Rs 807 crore vs. Rs. 636 crore, up by 27% YoY. Total income jumped 18.47% YoY to Rs 4,771.10 crore in Q4FY26.