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, with book size expanding to ₹16,671 crores 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.

Business Growth and Book Size Expansion

L&T Finance demonstrated strong business expansion with its book size growing to ₹16,671 crores, marking an 11% year-over-year increase and 5% quarter-over-quarter growth. The company benefited from positive GST collections and favorable monsoon conditions that boosted festival demand across its key business segments.

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:

Business Expansion and Strategic Initiatives

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. The company also continued its employee stock option programs, allotting 27,57,685 equity shares during Q3FY26 and 77,59,525 equity shares for the nine months ended December 31, 2025.

L&T Finance has made significant strides in both technological advancement and business expansion, with the company confirming that its Cyclops system is now active in the personal loans business. The full rollout of this system is expected by the end of Q4 FY26, according to recent concall updates.

Cyclops System Implementation

The activation of the Cyclops system represents a major technological milestone for L&T Finance's personal loans division. This system implementation is part of the company's broader digital transformation strategy aimed at enhancing operational efficiency and customer experience.

Gold Loan Branch Expansion Strategy

Simultaneously, L&T Finance continues to pursue its ambitious expansion strategy for the gold loan business, targeting the establishment of over 330 branches by the end of FY26. This strategic initiative represents a significant step in strengthening the company's position in the retail lending market.

Strategic Business Development

The dual focus on technological enhancement through the Cyclops system and physical expansion through gold loan branches demonstrates L&T Finance's comprehensive approach to business growth. The Cyclops system activation in personal loans complements the company's expansion in secured lending products like gold loans.

This multi-pronged strategy positions L&T Finance to capture opportunities across different lending segments while leveraging both digital capabilities and physical presence. The systematic rollout timeline extending to FY26 provides adequate time for proper implementation and operational optimization across both initiatives.