L&T Finance Q2 Updates: Retail Loan Disbursements Rise 25% To Rs 18,850 Crore

L&T Finance Ltd., the lending arm of the Larsen & Toubro Group, saw a 17% year-on-year rise in its retail loan book at Rs 1.05 lakh crore in the quarter ended September 2025, as per quarterly business updates released on Friday.

The retail loan book of the non-banking financial company was Rs 88.975 crore in the corresponding quarter last year.

Retail disbursements jumped 25% to Rs 18,850 crore. The maximum loans were issued under the urban finance segment at Rs 8,140 crore, higher as compared to Rs 6,285 crore in the same quarter of last fiscal.

The rural business finance segment was up at Rs 6,310 crore from Rs 5,435 crore in the year-ago period. The SME finance business rose from Rs 1,244 crore to Rs 1,460 crore.

On the other hand, the loans issued under the farmer finance segment declined to Rs 1,650 crore from Rs 1,782 crore in the September 2024 quarter.

L&T Finance said its retailisation is estimated at 98% in the first quarter of this fiscal, as compared to 96% in the year-ago period.

L&T Finance reported a 2.3% rise in consolidated net profit in the first quarter of financial year 2026, meeting analysts' estimates. The bottom line came in at Rs 701.1 crore compared to Rs 685.5 crore in the same period last year. Analysts' consensus estimates compiled by Bloomberg projected Rs 682 crore.

Total income in quarter ended June rose 13% to Rs 4,259.6 crore in comparison to Rs 3,784.6 crore. Net interest income also rose 8% to Rs 2,278.8 crore from Rs 2,101.2 crore.

The business update was shared after market hours. The stock settled 1.45% higher at Rs 262.33 apiece on the NSE, compared to a 0.23% advance in the benchmark Nifty 50. The shares earlier during the day rose as much as 2.06% to Rs 263.90 per share.

L&T Finance shares have risen 44.75% in the last 12 months and 44.75% year-to-date.

Out of 21 analysts tracking the company, 14 maintains a 'buy' rating, three recommend a 'hold' and four suggests 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 231 implies a downside of 11.9%.