Total income jumped 9.55% YoY to Rs 3,675.85 crore in Q4 FY25.
Profit before tax (PBT) marginally rallied 16.06% to Rs 805.52 crore in Q4 FY25, compared with Rs 694.02 crore in Q4 FY24.
Net interest income improved 9% year on year (YoY) to Rs 3,535 crore in the quarter ended 31 March 2025. Net interest margin in Q4 FY25 was 8.15% as against 9.14% in Q4 FY24.
The company’s retail book witnessed a growth of 12.71% YoY to Rs 95,180 crore, while disbursements marginally shed by 0.96% YoY to Rs 14,899 crore.
Rural business finance quarterly disbursements stood at Rs 5,114 crore in Q4 FY25, down 11.33% compared with Rs 5,768 crore in Q4 FY24, while book size increased 6% YoY to 26,320 crore in Q4 FY25.
Farmer Finance disbursement jumped 14.70% YoY to Rs 1,755 crore in Q4 FY25. The book size stood at Rs 15,219 crore, up 10% YoY. “Growth was aided by a better-than-average monsoon and improving rural liquidity," stated the company.
Two-wheeler finance disbursement declined 26% YoY to Rs 1,857 crore in Q4 FY25, compared with Rs 2,502 crore in Q4 FY24. Book size stood at Rs 12,321 crore in Q4 FY25, up 10% YoY.
Personal loan disbursements surged 98% YoY to Rs 1,915 crore during the quarter. Book size rallied 34% YoY to Rs 8,648 crore in Q4 FY25.
In Q4 FY25, home loan disbursement tanked 9% to Rs 1,661 crore, compared with Rs 1,823 crore in Q4 FY24. The book size increased 35% YoY to Rs 24,929 crore during the quarter. The company said that growth in the segment was aided by newer partnerships and a strong network of distribution channels.
SME finance disbursement jumped 26% to Rs 1,528 crore during the quarter, compared with Rs 1,213 crore in Q4 FY24. The book size surged 67% to Rs 6,524 crore in Q4 FY25, compared with Rs 3,905 crore in the same quarter last year.
In Q4 FY25, the company’s RoA stood at 2.22%, up 3 basis points year-on-year from 2.19%, while RoE improved to 10.13%, rising 60 basis points YoY from 9.53%.
On a full-year basis, the company’s net profit jumped 13.94% to Rs 2,643.66 crore on a 13.45% rise in total income to Rs 15,940.98 crore in FY25 over FY24.
The company entered into a business transfer agreement with Paul Merchants Finance for the proposed acquisition of their gold loan business undertaking through a slump sale on a going concern basis, subject to the fulfillment of customary closing conditions. This acquisition aligns with our strategy to expand our secured, high-yielding loan portfolio. It accelerates the scale-up of our gold loan business by approximately 36 months, offering a high-quality, profitable franchise with an attractive RoA profile at a compelling valuation. An integration plan and governance framework have been established to ensure a smooth transition, with a targeted closing date within Q2 FY26.
Sudipta Roy, Managing Director & CEO of LTF said, “In a year marked by considerable headwinds, our performance remained resilient while showcasing our ability to thrive even in a challenging environment. This stability is underpinned by our unwavering commitment to strong asset quality reinforced by a strong focus on collection efficiency across businesses. We believe the financial year 2024-25 marks a significant step in laying the foundation for sustainable and predictable growth going forward. Operationally, we made significant strides with the successful 100% implementation of 'Project Cyclops' 2.0, our next-gen AI-ML-based credit underwriting engine, in Two-Wheeler Finance, and its ongoing rollout in Farm Equipment Finance.
Furthermore, our large partnerships with PhonePe, CRED, and Amazon Pay, launched in the financial year 2024-25, are gaining momentum. During the year, while we remained focused on strengthening our risk and credit frameworks, we equally worked on building capabilities, both on the technology and people front, which will serve us well in times to come.
Looking forward, our focus remains on delivering quality services to our customers. We are confident that our commitment to operational excellence, customer centricity, strong governance, and prudent risk management, all powered by a digital-first approach, will sustain our growth momentum as we continue to build a customer-focused, digital-native financial services powerhouse.”
Meanwhile, the board has recommended a final dividend of Rs 2.75 per equity share for the financial year 2024-25 at the board meeting held on 25 April 2025. This is the highest dividend declared by the company to date. The dividend, once approved by the members at the ensuing Annual General Meeting (AGM), will be paid within 30 days from the date of the AGM.
L&T Finance offers financing for two-wheelers, consumer goods, homes, farm equipment, women entrepreneurs, rural groups, real estate, and infrastructure. It provides financing for small and medium enterprises through term loans and overdraft facilities.
Shares of L&T Finance declined 3.57% to end at Rs 173.10 on Friday, 25 April 2025.