L&T Finance Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, demonstrating robust performance across key financial metrics. The Board of Directors approved these results at their meeting held on January 16, 2026.

Strong Quarterly Performance

The company delivered impressive growth in Q3FY26, with consolidated profit after tax reaching ₹737.99 crores compared to ₹625.65 crores in the corresponding quarter of the previous year. This represents a substantial year-on-year growth of 18.0%, reflecting the company's strong operational momentum.

Nine-Month Financial Highlights

For the nine months ended December 31, 2025, L&T Finance maintained its growth trajectory with consolidated profit after tax of ₹2,173.71 crores, representing an 8.3% increase from ₹2,007.58 crores in the corresponding period of FY25. Revenue from operations for the nine-month period stood at ₹12,191.98 crores, up from ₹10,913.41 crores in the previous year.

Impact of New Labour Codes

The company accounted for the impact of new labour codes implemented by the Government of India effective November 21, 2025. These codes consolidated 29 existing labour regulations into four comprehensive codes, resulting in a one-time exceptional item of ₹28.51 crores (net of tax ₹21.33 crores) for the quarter and nine months ended December 31, 2025.

Business Expansion and Acquisitions

During the current financial year, L&T Finance acquired the gold loan business of Paul Merchants Finance Private Limited for approximately ₹711 crores through a slump sale on a going concern basis on June 9, 2025. This strategic acquisition strengthens the company's portfolio in the gold loan segment.

Equity Share Capital and Employee Stock Options

The company allotted 27,57,685 equity shares during Q3FY26 and 77,59,525 equity shares during the nine-month period, each with a face value of ₹10, upon exercise of employee stock options. The paid-up equity share capital as of March 31, 2025, stood at ₹2,494.87 crores.

Security Coverage and Compliance

L&T Finance maintains strong security coverage for its listed non-convertible debentures, with a security coverage ratio of 1.07 times as of December 31, 2025. The company's debt-equity ratio stands at 3.78 times, and it continues to comply with all applicable financial covenants and regulatory requirements.

L&T Finance Limited announced strong financial performance for the quarter and nine months ended December 31, 2025, demonstrating robust growth across key metrics. The non-banking financial company reported significant improvements in profitability and operational efficiency during the reporting period.

Strong Quarterly Performance

The company delivered impressive results for Q3FY26, with consolidated net profit attributable to owners increasing substantially compared to the previous year. Revenue from operations also showed healthy growth, reflecting the company's expanding business operations.

Nine-Month Financial Highlights

For the nine months ended December 31, 2025, L&T Finance maintained its growth trajectory with consistent performance improvements across all major financial parameters.

Exceptional Items Impact

The company reported exceptional items of ₹28.51 crores during the quarter and nine months ended December 31, 2025, related to the implementation of new labour codes. The Government of India consolidated 29 existing labour regulations into four Labour codes effective November 21, 2025, resulting in a one-time material increase in provision for employee benefits. The net impact after tax was ₹21.33 crores.

Earnings Per Share Performance

L&T Finance demonstrated strong earnings per share growth during the reporting period:

• Q3FY26 Basic EPS: ₹2.95 (not annualized) vs ₹2.51 in Q3FY25
• Q3FY26 Diluted EPS: ₹2.94 (not annualized) vs ₹2.50 in Q3FY25
• Nine-month Basic EPS: ₹8.70 (not annualized) vs ₹8.06 in 9M FY25
• Nine-month Diluted EPS: ₹8.67 (not annualized) vs ₹8.03 in 9M FY25

Business Expansion and Acquisitions

During the reporting period, L&T Finance strengthened its market position through strategic acquisitions. On June 9, 2025, the company acquired the gold loan business of Paul Merchants Finance Private Limited for a total consideration of approximately ₹711 crores through a slump sale on a going concern basis.

Regulatory Compliance and Share Capital

The company maintained strong regulatory compliance and continued its employee stock option programs. During Q3FY26, L&T Finance allotted 27,57,685 equity shares of ₹10 each on exercise of options by employees. For the nine months ended December 31, 2025, the company allotted 77,59,525 equity shares under its Employee Stock Option Schemes.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on January 16, 2026. The joint statutory auditors conducted a limited review of the results and issued an unmodified report.