L&T Finance Ltd
💰 L&T Finance FY2026: Strong Growth & Strategic Expansion
- L&T Finance Limited has complied with all financial covenants and conditions as per the Debenture Trust Deed (DTD) for the period ending March 31, 2026.
- Total outstanding secured non-convertible debentures (including accrued interest) amount to approximately Rs. 239,680.77 crores.
- The company has maintained a security margin of 100% or 125% as required, with total asset cover required at Rs. 257,527.26 crores.
- Total assets hypothecated as security are valued at Rs. 25,887.28 crores, primarily consisting of standard loans.
- No events of default, litigation, or insolvency proceedings occurred that could affect the company's ability to redeem debentures.
- All interest payments, redemptions, and security cover requirements were met, with compliance confirmed for covenants including asset cover ratio and debt-equity ratio.
- The company submitted necessary certificates and reports, including quarterly asset cover certificates and utilization of funds statements from statutory auditors.
- Related party transactions were disclosed, with payments for rent, maintenance, and professional fees totaling minor amounts compared to overall financials.
- L&T Finance Limited reported audited standalone financial results for the quarter and year ended March 31, 2026.
- Total revenue for the year was ₹18,054.20 crore, with interest income contributing ₹16,615.65 crore.
- Profit before tax for the year was ₹4,106.37 crore, and profit after tax was ₹3,100.31 crore.
- Earnings per share (EPS) for the year were ₹12.40 (basic) and ₹12.36 (diluted).
- Total assets increased to ₹141,942.51 crore as of March 31, 2026, from ₹120,032.79 crore the previous year.
- Debt securities and borrowings totaled ₹109,888.69 crore, with a debt-equity ratio of 3.95.
- The company maintained a security cover of 1.08 times for its secured listed non-convertible debentures.
- Auditors Brahmayya & Co. and T R Chadha & Co. LLP issued an unmodified audit opinion, confirming compliance with accounting standards.
- A final dividend of ₹2.75 per equity share was recommended, subject to shareholder approval.
- The company acquired the gold loan business of Paul Merchants Finance Private Limited for ₹711.93 crore in June 2025.
- Compliance with financial covenants for listed debt securities was confirmed, with no defaults reported.
- Gross stage 3 assets were 2.88%, and net stage 3 assets were 0.96% as of March 31, 2026.
- Capital to risk-weighted assets ratio stood at 18.34%, and liquidity coverage ratio was 342% for the quarter.
- L&T Finance Limited's Board approved audited financial results for the quarter and year ended March 31, 2026, with consolidated revenue from operations at ₹17,913.67 crores and net profit after tax at ₹2,982.87 crores.
- Recommended a final dividend of ₹2.75 per equity share (face value ₹10) for FY2025-26, subject to shareholder approval at the upcoming AGM.
- Approved entry into the pre-paid instruments business (wallets and cards) and acting as a Third-Party Application Provider, pending regulatory approvals from RBI and NPCI.
- Approved raising funds through non-convertible debentures (NCDs) up to an aggregate limit of ₹1,23,500 crores, including foreign currency bonds and masala bonds.
- Approved issuance of cumulative compulsorily redeemable non-convertible preference shares up to ₹6,012 crores in FY2026-27, subject to shareholder approval.
- Appointed Mr. Sachinn Joshi as Whole-time Director for 2 years and Mr. Raju Dodti as Whole-time Director for 3 years, both subject to regulatory and shareholder approvals.
- Auditors issued an unmodified opinion on the financial results, confirming compliance with Ind AS and SEBI Listing Regulations.
- Exceptional item of ₹28.51 crores (net of tax ₹21.33 crores) recognized due to the impact of new labour codes on employee benefits.
- Acquired the gold loan business of Paul Merchants Finance Private Limited for ₹711.93 crores on June 9, 2025.
- Earnings per share for FY2026: Basic ₹11.92 and Diluted ₹11.88.