SYNOPSIS: Shares of L&T Finance rallied on Friday as it reported 39 percent YoY growth in retail disbursements to Rs. 8,009 crore, driven by digital initiatives. The company also entered the gold loan segment, targeting 200 branches by FY26.
Shares of a leading Non-Banking Financial Company (NBFC), offering a range of financial products and services, surged nearly 11 percent to hit a new 52-week high at Rs. 305.35 on Friday. What triggered this steep rise? Let’s break it down in this article.
With a market cap of Rs. 75,942 crores, the shares of L&T Finance Limited closed in the green at Rs. 303.55 on BSE, up by around 10.3 percent, as against its previous closing price of Rs. 275.25.
The stock has delivered multibagger returns of around 111 percent in the last one year, and has gained by over 17 percent in the last one month.
What’s the News:
L&T Finance Limited maintains a well-diversified and granular loan book, with around 98 percent dedicated to the retail segment – underscoring its strategic shift toward consumer and small business financing. A significant portion of its portfolio, around 55 percent, comprises rural and microfinance, farmer financing, and two-wheeler loans, highlighting its strong presence in grassroots lending.
In its investor presentation released on 6th November 2025, the company reported record-high monthly retail disbursements in October 2025. Retail finance disbursements rose 39 percent YoY to Rs. 8,009 crore, driven by robust growth across both urban and rural segments. Urban finance disbursements stood at Rs. 3,697 crore, up 49 percent YoY, while rural finance increased 42 percent to Rs. 2,169 crore.
The growth in disbursements of 39 percent YoY was largely supported by technology-driven initiatives and strategic digital partnerships, which have significantly enhanced customer acquisition and operational efficiency.
Additionally, L&T Finance announced its foray into the gold loan segment, with plans to establish around 200 dedicated branches by FY26. The initiative aims to introduce a high-yield, low-risk lending product to further diversify its portfolio. The company inaugurated its first Sampoorna Gold Loan branch in Ujjain on 30th October 2025.
As part of its strategic expansion, L&T Finance intends to strengthen its presence in the fast-growing secured gold loan market, which is witnessing a CAGR of over 20 percent. The company also highlighted a cross-selling opportunity of around Rs. 17,000 crore in gold loans among its existing microfinance customer base.
Financials & More:
L&T Finance reported a marginal growth in its revenue from operations, showing a year-on-year increase of around 8 percent from Rs. 4,019 crores in Q2 FY25 to Rs. 4,336 crores in Q2 FY26.
Similarly, its net profit during the same period increased from Rs. 697 crores to Rs. 735 crores, representing a marginal rise of over 5 percent YoY.
L&T Finance Limited, formerly known as L&T Finance Holdings Limited, is a subsidiary of Larsen & Toubro Limited and is registered with the Reserve Bank of India (RBI) as a non-deposit-taking Systemically Important (NBFC-ND-SI) company. It is a financial holding company engaged in the business of offering a focused range of financial products and services across rural, housing and wholesale finance sectors, as well as mutual fund products and wealth management services.
Written by Shivani Singh
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