L&T Finance's Q1FY26 Roars: Retail Focus & Gold Loan Fuel Growth! 🚀
Hey finance watchers! 👋 L&T Finance Limited (LTF) has just dropped its business update for the quarter ended June 30, 2025 (Q1FY26), and the numbers paint a pretty exciting picture of growth and strategic alignment.
The “Retailisation” Drive Continues Strong! 💪
One of the biggest takeaways is L&T Finance’s relentless push towards ‘retailisation.’ This means shifting their loan book away from larger, typically riskier wholesale loans towards a more diversified and stable retail customer base. For Q1FY26, the company estimates its retailisation of the portfolio at an impressive 98%, up from 95% in Q1FY25. This move aligns perfectly with their stated strategy to become a fully retail-focused financial powerhouse, aiming for full retailisation by FY26. It’s a smart move for an NBFC like L&T Finance, as a strong retail portfolio often leads to better asset quality and more predictable earnings. You can learn more about their strategy on their official website: L&T Finance
Surging Disbursements: 18% Growth! 💸
When it comes to getting money into the hands of customers, L&T Finance is clearly on an upward trajectory. Retail disbursements for Q1FY26 are estimated to hit approximately ₹17,510 crores, marking a fantastic ~18% growth year-on-year (Y-o-Y)! This isn’t just a big number; it reflects the underlying momentum across their various retail segments. Here’s a quick look at how the different segments contributed:
Retail Disbursements (Rs. in crores)
| Retail Disbursements | Q1FY2024-25 (Actual) | Q1FY2025-26 (Estimated) |
|---|---|---|
| Rural Business Finance | 5,773 | 5,610 |
| Farmer Finance | 1,903 | 2,200 |
| Urban Finance | 6,044 | 6,850 |
| SME Finance | 978 | 1,270 |
| Gold Finance* | 1,530 | |
| Acquired Portfolio | 141 | 50 |
| Retail Finance Total | 14,839 | 17,510 |
Gold Loan Business: A Strategic Acquisition! ✨
Notice the new entry in the table? Gold Finance! This is a significant highlight. On June 9, 2025, L&T Finance acquired the gold loan business of Paul Merchants Finance Pvt Ltd (PMFPL). This strategic move immediately added approximately ₹1,350 crore to their gold loan portfolio during the quarter, contributing significantly to the overall disbursements. Entering or expanding in the gold loan segment is a smart play for NBFCs in India, as it caters to a wide customer base and involves secured lending, offering a potentially stable revenue stream.
Growing Loan Book: Nearing ₹1 Lakh Crore! 📊
All this activity translates into a robust growth in the overall retail loan book. As of the end of Q1FY26, L&T Finance’s retail loan book is estimated to be around ₹99,800 crores, which is another ~18% Y-o-Y growth! They are truly inching closer to that massive ₹1 lakh crore milestone!
Retail Loan Book (Rs. in crores)
| Particulars | Q1FY2024-25 (Actual) | Q1FY2025-26 (Estimated) |
|---|---|---|
| Retail Loan Book | 84,444 | 99,800 |
It’s important to remember that these figures are estimated and provisional, subject to a limited review by the statutory auditors. Nevertheless, the direction is clear: L&T Finance is executing its retailisation strategy effectively, driving impressive growth across its key business segments. Keep an eye on this space for more updates! 👀
source: Corporate Announcement
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