L&T Finance Reports Highest-Ever Quarterly PAT In Q1 FY27; Profit Jumps 29% YoY; Check Details

On Monday, Indian equity benchmarks traded marginally higher, with the benchmark Nifty 50 index gaining 0.04 per cent to 24,217.30. L&T Finance share price traded at Rs 326.70, up 1.70 per cent or Rs 5.45 from the previous close, as the company announced its Q1 FY27 earnings.

L&T Finance Q1 Performance & Consolidated Loan Book

L&T Finance Limited (LTF) reported a consolidated profit after Tax (net profit) of Rs 902 crore for Q1 FY27, its highest-ever quarterly profit, up 29 per cent YoY from Rs 701 crore in Q1 FY26. The consolidated loan book reached Rs 1,29,634 crore, also the highest on record, growing 27 per cent YoY from Rs 1,02,314 crore in Q1 FY26.

The retail loan book, excluding the wholesale portfolio being phased out under the Lakshya 2031 strategy, grew 28 per cent YoY to Rs 1,27,535 crore, comfortably exceeding the company's internal growth target of more than 20 per cent.

Profitability also improved during the quarter. RoA increased to 2.48 per cent from 2.37 per cent a year ago, while RoE rose to 12.71 per cent from 10.86 per cent. Net Interest Margin, including fees, expanded by 25 basis points YoY to 10.47 per cent.
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Retail Disbursements Drive Growth

Retail disbursements rose 36 per cent YoY to Rs 23,852 crore, supported by strong growth across lending segments.

Personal Loans emerged as the leader, with disbursements jumping 126 per cent YoY to Rs 4,380 crore. Two-Wheeler Finance disbursements rose 41 per cent YoY to Rs 3,006 crore, whereas Rural Business Finance increased 24 per cent YoY.

Housing Loans and Loan Against Property disbursements rose 22 per cent YoY to Rs 3,401 crore, SME Finance increased 23 per cent to Rs 1,567 crore, and Gold Finance disbursements increased 26 per cent to Rs 1,928 crore.

The Gold Loan portfolio increased 182 per cent YoY to Rs 3,829 crore, helped by the addition of gold finance operations acquired in June 2025 and the branch network, which reached 343 branches.

Asset Quality And Cost Of Borrowing

Asset quality continued to improve. Gross Stage 3 (GS3), the proportion of stressed loans, fell to 2.86 per cent in Q1 FY27 from 3.31 per cent in Q1 FY26. Net Stage 3 (NS3) declined to 0.90 per cent from 0.99 per cent over the same period.

Credit cost for Q1 FY27 stood at 2.54 per cent, down 89 basis points YoY from 3.43 per cent in Q1 FY26 and 10 basis points lower QoQ from 2.64 per cent in Q4 FY26.

The Weighted Average Cost of Borrowing (WACB) stood at 7.20 per cent in Q1 FY27, down 48 basis points YoY from 7.68 per cent in Q1 FY26. The Provision Coverage Ratio improved to 98.22 per cent, up 2 basis points YoY.

Technology And AI Deployment

LTF has been deploying in-house AI tools across its lending operations as part of its transition towards an AI-native lending model. PLANET, the company's customer application, reached 2.5 crore installations as of June 30, 2026, with more than 20 lakh rural customers using the app. The app has been used for collecting payments amounting to Rs 11,500 crore and arranging loans worth Rs 34,462 crore.

AI co-pilots are being used across underwriting, fraud detection, servicing and collections. The SME underwriting co-pilot Project Helios has processed over 40,000 files, while the Mortgage Legal Process Automation Co-Pilot has processed over 4,000 files in 11 vernacular languages.

The Gold Loan Origination System, Project Canyon, uses an agentic AI interface and combines 16 integrated systems and over 60 APIs.

About L&T Finance Limited

L&T Finance Limited is an upper-layer Non-Banking Financial Company (NBFC) headquartered in Mumbai. It offers retail financial products including Farmer Finance, Rural Business Finance, Two-Wheeler Finance, Personal Loans, Home Loans, Loan Against Property, SME Finance and Gold Finance.

The company serves customers across approximately 2 lakh villages and over 450 cities through around 2,800 branches. It has a customer database of over 2.9 crore and operates under its five-year Lakshya 2031 strategic plan.

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Disclaimer: The article is for informational purposes only and not investment advice.