L&T Finance Ltd reported a significant acceleration in retail lending activity for the quarter ended March 31, 2026, supported by strong demand across multiple lending categories and continued focus on retail expansion. The company’s performance highlights its strategy of deepening its presence in rural, urban, and small business financing segments.
Retail disbursements for the fourth quarter are estimated at ₹24,080 crore, reflecting a sharp year-on-year growth of about 62% compared with ₹14,899 crore recorded in the same quarter of the previous financial year. This substantial rise underscores improved customer demand and expanded lending operations across its core business verticals.
The increase in quarterly disbursements was driven by healthy traction across key financing segments. These included rural business finance, farmer finance, urban finance, and SME finance, all of which contributed meaningfully to the overall lending momentum. The diversified nature of the company’s lending portfolio played a key role in supporting this strong growth trajectory.
Among the major contributors, rural business finance delivered notable growth during the quarter. Disbursements in this segment rose to ₹7,200 crore, compared with ₹5,114 crore recorded in the year-ago period. This improvement reflects stronger rural credit demand and the company’s expanding reach in semi-urban and rural markets.
The farmer finance segment also recorded steady progress, with disbursements increasing to ₹2,035 crore during the quarter, up from ₹1,755 crore in the corresponding period of the previous year. This growth indicates continued demand for agricultural credit and rural financing support, particularly in farming-related activities.
Urban-focused lending emerged as one of the strongest growth drivers during the quarter. Urban finance disbursements surged to ₹9,840 crore, compared with ₹6,104 crore in the same quarter last year. The rise highlights growing financing demand in metropolitan and urban centers, including loans linked to consumer and housing-related needs.
The SME finance segment also posted encouraging gains. Disbursements increased to ₹1,835 crore, compared with ₹1,528 crore recorded in the year-ago period. This performance reflects steady credit demand among small and medium enterprises, which continue to rely on financing support for expansion and working capital requirements.
In addition to its core lending segments, gold finance played a meaningful role in overall retail disbursements during the quarter. This segment contributed ₹2,775 crore, providing additional support to the company’s total lending volumes. Meanwhile, the acquired portfolio remained largely stable at ₹395 crore, compared with ₹398 crore recorded in the same quarter of the previous financial year.
Looking at the full financial year performance, the company maintained strong momentum. For the financial year ended March 31, 2026, retail disbursements are estimated at ₹83,190 crore, representing a year-on-year growth of about 39% compared with ₹60,040 crore recorded in the previous financial year. This sustained growth highlights the effectiveness of the company’s retail-focused strategy over a longer time frame.
The expansion in lending activity also translated into growth in the company’s overall retail loan portfolio. As of March 31, 2026, the retail loan book stood at approximately ₹1,19,550 crore, reflecting a 26% increase compared with ₹95,180 crore recorded as of March 31, 2025. This indicates continued strengthening of its balance sheet through retail lending growth.
Another notable development during the period was the improvement in the company’s retailisation ratio, which measures the share of retail loans in the total portfolio. The ratio increased to 98% as of March 31, 2026, compared with 97% in the corresponding quarter of the previous year. This shift highlights the company’s ongoing transition toward a predominantly retail-focused lending model.
Management clarified that the financial figures reported for the quarter and full year are estimated and provisional, and remain subject to final review and audit by statutory auditors. Such disclosures are standard practice before the publication of audited financial statements.
Despite the strong operational performance, the company’s stock movement reflected cautious market sentiment. Shares of L&T Finance Ltd declined on the BSE Limited, closing at ₹240.45, down ₹4.05, or 1.66%, during the trading session.
Overall, the strong growth in disbursements, rising retail loan book, and continued expansion across lending segments highlight the company’s commitment to strengthening its retail lending franchise. Sustained performance across rural, urban, and SME segments positions the company to maintain momentum, provided credit demand remains stable and macroeconomic conditions remain supportive.