L&T Finance Q1 profit rises to Rs 916 crore as income jumps and board adds new director

MUMBAI: L&T Finance has started the new financial year with its books firmly in the black. The non-banking financial company reported a sharp rise in first-quarter earnings, driven by healthy growth in lending income, while also strengthening its board with the appointment of veteran banker Prashant Kumar as an independent director.

The company’s board approved the results at its meeting on July 10, 2026, which ran from 1.50 pm to 5.38 pm.

For the quarter ended June 30, 2026, L&T Finance reported consolidated total income of Rs 5,243.31 crore, up from Rs 4,259.60 crore in the corresponding quarter last year.

Revenue from operations accounted for Rs 5,212.92 crore, of which interest income contributed Rs 4,894.91 crore and fees and commission income added Rs 318.01 crore. Other income stood at Rs 30.39 crore.

Total consolidated expenses during the quarter rose to Rs 4,007.03 crore.

Finance costs remained the largest expense at Rs 1,970.07 crore, followed by employee benefit expenses of Rs 697.67 crore. The company also recognised Rs 582.64 crore as impairment on financial instruments.

Other expenses included Rs 506.47 crore under operating costs, Rs 133.61 crore as net loss on derecognition of financial instruments measured at amortised cost, Rs 62.68 crore towards depreciation, amortisation and impairment, and Rs 53.89 crore relating to fair value losses.

Despite the higher expenditure, profit before exceptional items and tax climbed to Rs 1,236.28 crore.

After accounting for a net tax expense of Rs 320.29 crore, comprising current tax of Rs 402.06 crore offset by a deferred tax credit of Rs 81.77 crore, the company posted a consolidated profit after tax of Rs 915.99 crore.

Of the total profit, Rs 902.47 crore was attributable to equity shareholders, while Rs 13.52 crore was attributed to non-controlling interests.

Basic earnings per share stood at Rs 3.60, while diluted earnings per share came in at Rs 3.59. Total comprehensive income for the quarter was Rs 915.04 crore.

The standalone business also remained financially strong.

Standalone net profit after tax stood at Rs 895.32 crore, with a net profit margin of 17.07 per cent.

The company’s net worth increased to Rs 28,055.52 crore, while its debt-to-equity ratio stood at 4.11. The total debt-to-total assets ratio remained at 0.78.

L&T Finance maintained regulatory reserves of Rs 72.05 crore in its capital redemption reserve and Rs 0.29 crore in its debenture redemption reserve.

Asset quality continued to remain stable, with gross Stage 3 assets at 2.86 per cent and net Stage 3 assets at 0.90 per cent.

Its capital-to-risk weighted assets ratio (CRAR) stood at 17.89 per cent, while the liquidity coverage ratio reached 325 per cent, indicating a strong liquidity position.

Alongside the financial performance, the board approved the appointment of Prashant Kumar as an additional independent director for a five-year term beginning July 10, 2026, subject to shareholder approval. His tenure will continue until July 9, 2031.

The board also approved the reclassification of Nabha Power Limited from the promoter group to the public category after the company ceased to be a subsidiary of Larsen & Toubro Limited. Nabha Power currently holds no shares in L&T Finance.

The financial statements underwent a limited review by joint statutory auditors Brahmayya & Co. and TR Chadha & Co LLP, who issued an unmodified opinion.

The auditors noted that three unreviewed subsidiaries contributed Rs 11.19 crore in revenue and Rs 7.07 crore in net profit, while L&T Infra Investment Partners reported Rs 0.05 crore in revenue and Rs 29.86 crore in net profit. These amounts were considered immaterial to the group’s overall financial position.

The company also confirmed that there had been no deviation in the utilisation of proceeds raised through non-convertible securities, with the filings signed by Apurva Rathod.

With earnings approaching the Rs 1,000 crore mark, healthy asset quality, ample liquidity and a strengthened board, L&T Finance has entered FY27 with solid financial momentum and a strengthened governance framework.