L&T Finance posts PAT of Rs 701 crore in Q1 FY26; retail disbursements up by 18% YoY
Net interest income for the period under review was Rs 2,054 crore, up 2% YoY. Net interest margin was 8.24% in Q1 FY26 as against 9.31% in Q1 FY25.
Earnings before credit cost rose by 4% to Rs 1,499 crore in Q1 FY26 from Rs 1,438 crore in Q1 FY25.
Credit cost for the June25 quarter was Rs 556 crore, up 8% YoY.
Profit before tax in Q1 FY26 stood at Rs 943 crore, up by 2% from Rs 923 crore posted in Q1 FY25.
The quarterly retail disbursements increased by 18% to Rs 17,522 crore in Q1 FY26 from Rs 14,839 crore. This was led by farmer finance, home loan & loan against property (LAP), and gold loans in the secured assets space while unsecured asset growth was contributed by personal loans.
The company's quarterly weighted average cost of borrowing (WACB) for Q1 FY26 was 7.68%, down 16 basis points (bps) on a quarter-on-quarter (QoQ) basis.
Consolidated book size as on 30 June 2025 was at Rs 1,02,314 crore as against Rs 88,717 crore as on 30 June 2024, up 15% YoY. Retail book was at Rs 99,816 crore as on 30 June 2025, up 18% YoY.
Gross Stage-3 (GS3) stood at 3.31% in Q1 FY26 as against 3.29% in Q4 FY25 and 3.14% in Q1 FY25. Net Stage 3 (NS3) stood at 0.99% in Q1 FY26 as against 0.79% in Q1 FY25 and 0.97% in Q4 FY25.
Consolidated return on equity (RoE) stood at 10.86% as against 11.58% in Q1 FY25. Return on assets (RoA) stood at 2.37% as against 2.68% in Q1 FY25.
Sudipta Roy, managing director & CEO, LTF said: "In a challenging quarter, our Company remained focused on outcomes and achieved a resilient performance while showcasing our ability to manage market headwinds.
In the quarter, we achieved the highest-ever consolidated book of over Rs. 1 lakh crore milestone and added a secured high yield product to our loan portfolio i.e., gold loan.
Our company has been assigned a debut investment grade credit rating of BBB-/Positive by S&P Global Ratings and BBB- /Stable by Fitch Ratings. This rating will serve as a foundation for further diversifying our liability franchise."
L&T Finance offers financing for two-wheelers, consumer goods, homes, farm equipment, women entrepreneurs, rural groups, real estate, and infrastructure. It provides financing for small and medium enterprises through term loans and overdraft facilities.
The scrip fell 1.73% to currently trade at Rs 206.95 on the BSE.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
3 minutes ago
- India.com
India's Pharma Exports Have Shot Up By 92% In Last 6 Years: Minister
New Delhi: Various schemes being implemented by the Centre to realise the vision of Aatmanirbhar Bharat in the pharmaceutical sector have resulted in India's exports of drugs and pharmaceuticals increasing by 92 per cent, from Rs 1,28,028 crore in FY2018-19 to Rs 2,45,962 crore in FY2024-25, the Parliament was informed on Friday. The schemes include the Promotion of Research and Innovation in Pharma MedTech Sector (PRIP) scheme, the Production Linked Incentive (PLI) Scheme for Pharmaceuticals, the PLI Scheme for Bulk Drugs, Scheme for Promotion of Bulk Drug Parks, and Strengthening of Pharmaceutical Industry scheme, Minister of State for Chemicals and Fertilisers Anupriya Patel told the Lok Sabha in a written reply to a question. The PRIP scheme has been launched with an outlay of Rs 5,000 crore to transform India's Pharma MedTech sector from cost- to innovation-based growth by strengthening research and promoting industry-academia linkage for research and development in priority areas in drug discovery and development and medical devices. Under this scheme, seven Centres of Excellence (CoEs) have been set up, she said. The PLI Scheme for Pharmaceuticals aims to enhance India's manufacturing capabilities by increasing investment and production in the sector and contributing to product diversification to high-value goods in the pharmaceutical sector. The minister said that the scheme has enabled enhanced investment and production in eligible products. As of March 2025, the committed investment of Rs 17,275 crore targeted over the six-year period of the scheme stands substantially exceeded with a cumulative investment of Rs 37,306 crore made by the scheme's third year, and cumulative sales of approved products of Rs 2,66,528 crore have been made, including exports of Rs 1,70,807 crore. The PLI Scheme for Bulk Drugs, which has a total budgetary outlay of Rs 6,940 crore, aims to avoid disruption in the supply of critical active pharmaceutical ingredients (APIs) used to make critical drugs for which there are no alternatives by reducing supply disruption risk due to excessive dependence on a single source. As of March 2025, the committed investment of Rs 3,938.5 crore under projects approved under the scheme for investment over the six-year production period of the scheme stands substantially exceeded with a cumulative investment of Rs 4,570 crore made by the scheme's third year, she further stated. The minister also highlighted that the government launched the Pradhan Mantri Bhartiya Janaushadhi Pariyojana scheme to make quality generic medicines available at affordable prices to all. Under the scheme, dedicated outlets known as Jan Aushadhi Kendras (JAKs) are opened across the country to provide medicines at prices that are about 50 per cent to 80 per cent lower than those of leading branded medicines in the market. Till June 6, 2025, a total of 16,912 JAKs have been opened, and on average, about 10 to 12 lakh persons visit these Kendras daily and avail of quality medicines at affordable prices. As many as 2,110 medicines and 315 surgicals, medical consumables and devices are under the scheme product basket, covering all major therapeutic groups, such as cardiovascular, anti-cancer, anti-diabetic, anti-infectives, anti-allergic and gastro-intestinal medicines and nutraceuticals. As a result of the scheme, in the last 11 years, estimated savings of about Rs 38,000 crore have accrued to citizens in comparison to the prices of branded medicines. Further, the scheme has provided self-employment to over 16,000 persons, including over 6,800 women entrepreneurs, the minister added.
Mint
3 minutes ago
- Mint
The Bitcoin is full of contradictions. It could still climb some more.
Bitcoin is in the midst of another historic rally. Can it continue? Your guess is as good as anyone's. The bearish arguments, so far proved wrong by the market, haven't changed. The bullish arguments remain as mercurial—and contradictory—as ever. The original cryptocurrency is having another great year, with its price up more than 27%. On Friday, Bitcoin traded at $119,023, up 0.5% for the day, and only about 3% below its July 14 all-time high of $123,166. The price peg's Bitcoin's total market cap at $2.3 trillion. If Bitcoin were a stock, that would rank it sixth in the S&P 500, behind Google parent Alphabet and in front of Meta, according to FactSet data. Given all the excitement, Wall Street analysts are scrambling to put a target price on the surging asset. On Thursday, Citigroup Global Markets offered investors a framework for understanding Bitcoin's price, based on criteria like demand and macro-economic factors. But the result wasn't going to change many minds: Citi offered a bull case of $199,000, representing a gain of about 70% from today's price and a bear case of $64,000, suggesting a 50% decline. It's hard to blame Citibank's analysts for trying to cover their bases. So many of the arguments in favor of Bitcoin tend to fall back on themselves—and yet the price marches ever upwards. Take Bitcoin's latest price driver: Action in Washington. Last week President Trump signed the Genius Act, a bill designed to regulate stable coins, a form of cryptocurrency backed by real assets. Lawmakers may soon advance the Clarity Act, which is designed to resolve the question of whether regulators should treat cryptocurrencies as commodities or securities. There is even talk of crypto in 401(k)s. It's true those developments could all further mainstream adoption. Yet for anyone who has followed the crypto industry's rhetoric over the past decade, it's a little hard not to blanch at all the cheering over victories in Washington. The original aim of Bitcoin—and its cri de coeur—was to be a store of value whose price was immune to government meddling. Bitcoin's scarcity, amid the growing demand for digital assets, is another key explanation for the rally. But this argument is thorny too. Bitcoin boosters are fond of repeating that there will never be more than 21 million Bitcoins, while regular 'halvings" make Bitcoin less and less lucrative to mine. Meanwhile, demand for Bitcoin has skyrocketed in the past year thanks to the advent of spot Bitcoin exchange-traded funds, which make it far easier for mainstream investors to bet on the cryptocurrency. The largest of these, the iShares Bitcoin Trust, has grabbed nearly $38 billion in investor dollars in the past 12 months and nearly $6 billion in the last month alone. But can this potent mix of scarcity and demand continue? While the number of Bitcoins is fixed, there is no limit on the number of copy-cat coins. CoinMarketCap tracks more than 18 million coins, according to its website, with a total market value of $1.5 trillion. So far the SEC has cleared spot ETFs for only the two most valuable cryptos: Bitcoin and Ethereum. But boosters of offerings such as XRP, Litecoin and Solana are clamoring for their own spot ETFs. Washington's new crypto-friendly attitude suggests they will soon get them. Of course, a flood of new crypto ETFs won't necessarily dampen investors' appetite for Bitcoin. Bitcoin's status and mystique as the original crypto has so far ensured it remains more valuable than its many imitators. But the potential flood does suggest that hype, more than limited supply, is what supports Bitcoin's price. Arguments for why investors should own Bitcoin (other than price speculation) are also shaky. Unlike stocks and bonds, Bitcoin doesn't throw off any cash flows. No matter, supporters have long argued. Bitcoin still has a role in your portfolio as a store of value, a form of 'digital gold." It's a view that has led some large investing firms (including Bitcoin ETF sponsors BlackRock and Fidelity) to advocate investors should consider devoting at least a small share of their overall portfolio, say 1% to 2%, to Bitcoin, to boost diversification. The Bitcoin-as-diversifier notion mirrors the longstanding arguments made in favor of owning actual gold—but there are problems with this thesis too. It's true that returns for Bitcoin and gold have resembled one another over the past year. They are both in the midst of big rallies. But, then so are plenty of risk-on assets, notably U.S. growth stocks, led by big U.S. technology names. While gold isn't a perfect hedge against stock-market declines, its reputation as a haven during times of macroeconomic turmoil has been established by academic studies looking at decades of returns. Bitcoin, invented in 2008, boasts no such extensive record. In fact, one recent study (again by BlackRock) found that, although Bitcoin's volatility had recently lessened, the coin remained about four times more volatile than gold. When the next bear market comes it seems likely investors will flee speculative assets like Bitcoin and tech stocks, not run to them for shelter. Where will Bitcoin go next? Prices may continue to march higher, just because they always have. But the arguments in favor of still-bigger gains still don't give much confidence—making sense only if you close one eye and wish away all the contradictions. Write to Ian Salisbury at
Mint
3 minutes ago
- Mint
c
Wall Street ended the week on a positive note, with stocks hitting fresh all-time highs amid solid earnings and hopes for US trade deals. After an uneventful meeting between Donald Trump and Jerome Powell, the Treasury market barely budged. The dollar climbed. In the run-up to the busiest week for corporate results, the S&P 500 rose for a fifth straight day, approaching 6,400. While the rally has stoked concerns about inflated prices amid a rush to risky corners and a revival of the meme-stock mania, many traders say it's hard to bet against the trend. A closely watched gauge of equity volatility - the VIX - closed below 15. 'If you are a structurally bearish investor, the recent few weeks must have felt like a century,' said Florian Ielpo at Lombard Odier Investment Managers. 'Not only are most equity indices advancing in what seems like an endless rally, but their valuations now globally surpass those at the start of the year.' Progress in trade deals, positive economic data and corporate resilience have offset worries that stocks are overheating. More than 80% of S&P 500 companies have exceeded profit estimates, according to data compiled by Bloomberg Intelligence. That's on track for the highest share of beats since 2021. 'The pace of earnings so far this month has been positive, economic data has been hanging in there, and we're even starting to get some sense of clarity on tariffs,' said Bespoke Investment Group. 'You can't fault investors for being optimistic.' Next week will also bring the jobs report, the Federal Reserve's rate decision and a deadline for US trade deals. European Commission President Ursula von der Leyen said she will travel to Scotland this weekend to meet with Trump, as the two sides aim to conclude a deal ahead of an Aug. 1 deadline. 'The market continues its steady climb as many key investor concerns have failed to materialize,' said Mark Hackett at Nationwide. 'While institutional investors who were short on an absolute or relative basis have largely capitulated, positioning still shows little sign of excess.' This suggests that the market momentum has room to build if macro conditions improve or even stabilize, Hackett noted. 'It's been a very, very active year for retail and just in the past month, I'd say, has been the craziest month that we've seen, so it is the return of meme stock rallying, sharp increases in really small companies picked up by Reddit channels and things like that,' said Sam Nofzinger, Public's general manager of brokerage. Goldman Sachs Group Inc.'s trading desk said its clients are growing 'more comfortable' betting against shares of unprofitable tech companies, following a resurgence of meme-stock mania that's sparked rallies in a cohort of smaller names. 'With the market pushing to new highs and volatility falling to its lowest levels since February, two of the major challenges facing investors are complacency and the urge to chase the market,' said Daniel Skelly, head of Morgan Stanley's Wealth Management Market Research & Strategy Team. The risk of a bubble in stock markets is rising as monetary policy loosens alongside an easing in financial regulation, says Bank of America Corp.'s Michael Hartnett. From a technical standpoint, Craig Johnson at Piper Sandler keeps his bullish view, citing factors such as improving market breadth and many of the popular averages reaching new highs. Monday kicks off the earnings season's busiest week, with over 40% of S&P 500 companies reporting results. Among the highlights will be several megacaps including Apple Inc., Inc., Microsoft Corp. and Meta Platforms Inc. 'We are seeing some divergence in earnings, but for the most part companies are beating expectations and keeping the stock rally going,' said Chris Zaccarelli at Northlight Asset Management. 'As long as trade policy and tariff headwinds are minor, the market can keep moving higher.' The world's investors are enjoying a confidence boost after months of uncertainty as Trump finally started signing trade deals. Earlier this year, rapidly-shifting tariff policies sent global markets spiraling. But risk assets have rebounded as investors saw signs of progress in negotiations. 'We've already seen a deal with Japan. A deal with the EU is necessary for the equity rally to continue, in our view, but would not be surprise,' said Paul Christopher at Wells Fargo Investment Institute. 'The only surprise would be no deal by Aug. 1.' To Mark Haefele at UBS Global Wealth Management, trade negotiations will ultimately lead to moderate policy. 'We would expect a tariff-led economic slowdown to be mild and short-lived, rather than recessionary,' he said. Trump also noted he would never back a weak dollar while also touting the economic benefits a low currency would bring, particularly for the country's manufacturing sector. While the greenback saw its worst week in July, it's set for the best month in 2025. The Fed released a statement Friday thanking Trump and Republican lawmakers for visiting the central bank's renovation project on Thursday. During his visit, Trump offered little criticism of the project, but urged Fed Chair Powell several times to lower interest rates. Trump says he had a good meeting with Powell, leading the US president to believe the Fed might cut borrowing costs. At Pepperstone, Quasar Elizundia says policymakers are expected to hold steady while signaling sensitivity to global trade conditions and softening investment trends. 'The case for leaving policy on hold has been made by several Fed speakers: inflation remains above target, inflation risks still pervade, and the labor market is near full employment,' said Michael Feroli at JPMorgan Chase & Co. The Fed 'should cut rates next week, but we don't think it will,' said FHN Financial's Chris Low and his colleagues. 'Instead, watch for Chair Powell to use the press conference to prep markets for a cut in September.' 'While Chair Powell will probably keep his options open for September, we think he will emphasize that recent US inflation and employment data make a case for leaving rates unchanged,' said James Egelhof and Guneet Dhingra at BNP Paribas. 'As we have since December 2024, we expect the policy hold to run past year end.' Intel Corp. sank as Chief Executive Officer Lip-Bu Tan sparked concerns that he was more focused on cost cutting than restoring the chipmaker's technological edge. Microsoft Corp. is investigating whether a leak from its early alert system for cybersecurity companies allowed Chinese hackers to exploit flaws in its SharePoint service before they were patched, according to people familiar with the matter. American Airlines Group Inc. finally has taken possession of its first long-range Airbus SE A321XLR aircraft, but the plane will remain in Europe because of a supply chain issue that's caused a shortage of seats. Paramount Global's merger with Skydance Media was approved by the US Federal Communications Commission. Pinnacle Financial Partners Inc. agreed to acquire Synovus Financial Corp. in an all-stock transaction valued at $8.6 billion, combining two sizable players in the US Southeastern market ahead of a potential wave of banking M&A. Charter Communications Inc. reported it lost more internet customers than expected during the second quarter amid increased pressure from mobile companies' 5G and fiber home internet offerings. Fuzzy Ugg boots and chunky Hoka running shoes saw big sales gains last quarter, bolstering financial results for parent company Deckers Outdoor Corp. Centene Corp. issued fresh annual guidance and laid out a plan to address problems in its Affordable Care Act business, offering investors a ray of hope in a year when insurers across the industry have struggled to cope with rising costs and changing government policies. Sarepta Therapeutics Inc. shares plunged after European regulators rejected its gene therapy Elevidys, intensifying scrutiny on the drugmaker after it was pressured to halt shipments of its treatment in the US. Bristol-Myers Squibb Co.'s chief medical officer is stepping down from his role after six years at the company, a surprise move as the drugmaker races to find its next hit to reverse its declining fortunes. Eli Lilly & Co. won the backing of European Union regulators for its Alzheimer's disease drug Kisunla in a specific group of patients, potentially paving the way for it to become the second drug in the region to slow the most common cause of dementia in the elderly. Newmont Corp. has made progress getting its costs under control, helping the world's top gold miner beat expectations on earnings at a time when a rally for the precious metal is underpinning the industry. Phillips 66 is maximizing diesel production to take advantage of strong demand and would consider investing in projects that give its refineries greater flexibility to tweak fuel output to match changing consumption patterns. Lyft Inc. is partnering with Benteler Group, an Austria-based manufacturer, to deploy autonomous shuttles in the US in late 2026, trying to catch up with rival Uber Technologies Inc. in offering driverless rides. The S&P 500 rose 0.4% as of 4 p.m. New York time The Nasdaq 100 rose 0.2% The Dow Jones Industrial Average rose 0.5% The MSCI World Index rose 0.1% Bloomberg Magnificent 7 Total Return Index rose 0.5% The Russell 2000 Index rose 0.4% Currencies The Bloomberg Dollar Spot Index rose 0.3% The euro was little changed at $1.1743 The British pound fell 0.5% to $1.3436 The Japanese yen fell 0.4% to 147.63 per dollar Bitcoin fell 1.7% to $116,755.58 Ether fell 2.5% to $3,644.22 The yield on 10-year Treasuries declined one basis point to 4.38% Germany's 10-year yield advanced two basis points to 2.72% Britain's 10-year yield advanced one basis point to 4.64% West Texas Intermediate crude fell 1.5% to $65.05 a barrel Spot gold fell 0.9% to $3,337.87 an ounce
