L&T Finance announced its audited financial results for Q4FY26 and the full fiscal year, reporting record-breaking performance across key metrics. The company achieved its highest ever consolidated annual Profit After Tax (PAT) of ₹3,003 Cr for FY26, representing a 14% year-on-year growth, while Q4FY26 PAT reached ₹810 Cr, marking a 27% YoY increase from ₹640 Cr in the previous year.

Q4FY26 Financial Performance

The fourth quarter demonstrated exceptional growth across all major financial indicators, with revenue reaching ₹4,771 Cr compared to ₹4,020 Cr in Q4FY25:

Net Interest Margin (NIMs) + Fees improved sequentially to 10.47% in Q4FY26 from 10.41% in Q3FY26. The company achieved its lowest-ever quarterly Weighted Average Cost of Borrowing (WACB) at 7.17% in Q4FY26, representing a reduction of 67 bps YoY.

Annual Performance Highlights

For the full fiscal year FY26, L&T Finance achieved significant milestones with 98% retailisation of its overall book:

The company maintained Return on Assets (RoA) at 2.39% and Return on Equity (RoE) at 11.33% for FY26, while credit cost was maintained at 2.54% for the year.

Lakshya 2031 Strategic Roadmap

L&T Finance launched its ambitious five-year strategic plan "Lakshya 2031," positioning the company as a premier AI-enabled BFSI institution. The plan focuses on building a well-diversified resilient portfolio and leveraging AI-enabled cross-sell platforms with specific targets:

Business Segment Performance

The company's diversified retail franchise showed strong growth across all segments. Personal Loans led with 100% YoY growth in annual disbursements to ₹12,220 Cr, while Two-Wheeler Finance disbursements grew 16% YoY to ₹10,787 Cr. Gold Finance, acquired in June 2025, expanded to 330 branches with annual disbursements of ₹6,700 Cr.

Board Decisions and Dividend

The Board recommended a final dividend of ₹2.75 per equity share (face value ₹10 per share) for FY26, subject to shareholder approval. Additionally, the Board approved the appointment of Mr. Sachinn Joshi and Mr. Raju Dodti as whole-time directors for tenures of 2 and 3 years respectively, effective upon regulatory approval.

Technology and AI Implementation

The company's AI initiatives showed remarkable results, with the Two-Wheeler 'Project Cyclops' portfolio achieving a 2.8% delinquency rate compared to the industry average of 7.1%. AI-driven collections facilitated over ₹4,000 Cr in collections during FY26, while the PLANET app crossed 2.40 Cr downloads.

Managing Director & CEO Sudipta Roy commented on the successful completion of Lakshya 26 strategic plan, highlighting the company's resilience amid market volatility and confidence in delivering steady outcomes through the new Lakshya 2031 roadmap.

L&T Finance has announced a major capital raising initiative, with its board of directors approving the issuance of non-convertible preference shares worth up to ₹6,012 crore.

Board Approval Details

The financial services company's board has given its approval for this substantial share issuance, marking a significant corporate development. The approved amount of ₹6,012 crore represents a considerable capital raising exercise through the preference share route.

Strategic Capital Initiative

The approval for non-convertible preference shares indicates L&T Finance's strategic approach to capital management. Non-convertible preference shares typically offer fixed dividend payments to investors while providing companies with an alternative funding mechanism compared to traditional equity or debt instruments.

This board approval represents a significant step in the company's capital structure planning, with the substantial amount reflecting the scale of the proposed fundraising initiative. The preference share route provides the company with flexibility in its capital raising strategy while offering investors a different investment proposition compared to equity shares.