L&T Finance Sees Profit Boost as It Expands Into Gold Loans

L&T Finance reported a 15% increase in net profit to Rs 636 crore for Q4 2024-25, up from Rs 554 crore the previous year. Total income rose to Rs 4,027 crore, with interest income reaching Rs 3,750 crore. The company plans to enter the gold loan sector, acquiring Paul Merchants Finance's gold loan business.

L&T Finance, a prominent retail-focused non-bank lender, has announced a significant increase in consolidated net profit, escalating by 15% to reach Rs 636 crore for the January-March quarter of 2024-25. This is a notable rise from the Rs 554 crore reported in the same period last year.

The company's total income rose to Rs 4,027 crore, up from Rs 3,676 crore a year ago, as detailed in its latest regulatory filing. Interest income saw a similar upward trajectory, climbing to Rs 3,750 crore during the period under review, compared to Rs 3,323 crore in the corresponding quarter of the previous year.

L&T Finance is poised for expansion, specifically targeting the gold loan segment. It has entered into a business transfer agreement with Paul Merchants Finance Pvt Ltd to acquire its gold loan business. This strategic move aims to fast-track the scaling of its secured high-yielding books, with an integration plan set to close by Q2 FY26.

(With inputs from agencies.)