L&T Finance Q1 profit rises 29% to ₹902 crore on robust retail growth
L&T Finance reported a 29% increase in consolidated net profit to ₹902 crore for Q1FY27, driven by a 36% rise in retail disbursements to ₹23,852 crore. The company achieved its highest ever consolidated book of ₹1,29,634 crore, growing 27% year-on-year, while asset quality improved with Gross Stage 3 assets at 2.86%.
*this image is generated using AI for illustrative purposes only.
L&T Finance Ltd reported a consolidated net profit of ₹902 crore for the quarter ended June 30, 2026, a 29% increase from ₹701 crore in the corresponding period of the previous year. The company achieved its highest ever consolidated book of ₹1,29,634 crore, registering a growth of 27% year-on-year. Total income for the quarter stood at ₹5,243.31 crore, up from ₹4,259.60 crore in Q1FY26, primarily driven by interest income which grew to ₹4,894.91 crore. The Board of Directors approved the unaudited financial results for the quarter at its meeting held on July 10, 2026.
Consolidated Financial Performance
The company’s profit before tax for the quarter was ₹1,236.28 crore, compared to ₹943.22 crore in the previous year. Total expenses increased to ₹4,007.03 crore from ₹3,316.38 crore in the same period last year. The net profit margin for the quarter was recorded at 17.47%. Earnings per share (EPS) on a consolidated basis increased to ₹3.60 from ₹2.81 in the previous year. Return on Assets (RoA) improved to 2.48% in Q1FY27 from 2.37% in Q1FY26.
| Metric | Q1FY27 (₹ in crore) | Q1FY26 (₹ in crore) |
|---|---|---|
| Total Income | 5,243.31 | 4,259.60 |
| Net Profit | 902.00 | 701.00 |
| Profit Before Tax | 1,236.28 | 943.22 |
| Total Expenses | 4,007.03 | 3,316.38 |
| Basic EPS | ₹3.60 | ₹2.81 |
Operational Highlights and Asset Quality
Retail disbursements grew 36% year-on-year to ₹23,852 crore, leading to a 28% increase in the retail book to ₹1,27,535 crore. The company maintained stable Net Interest Margins (NIM) plus fees at 10.47%, an improvement of 25 basis points year-on-year. Asset quality improved with Gross Stage 3 (GS3) assets at 2.86% and Net Stage 3 (NS3) at 0.90%, compared to 3.31% and 0.99% respectively in the previous year. The Weighted Average Cost of Borrowing (WACB) was anchored at 7.20%, down 48 basis points year-on-year.
Segment Performance
Growth was driven by strong performance across segments. Personal Loans disbursements jumped 126% to ₹4,380 crore, while the Gold Loan book expanded 182% to ₹3,829 crore. Two-Wheeler Finance disbursements stood at ₹3,006 crore, a growth of 41% year-on-year. Rural Business Finance and Farmer Finance segments also posted healthy growth, with disbursements of ₹6,961 crore and ₹2,453 crore respectively.
Governance and Capital Allocation
On a standalone basis, the company reported a net profit of ₹895.32 crore for the quarter. During the quarter, the company allotted 11,20,183 equity shares of ₹10 each fully paid-up upon the exercise of options by employees under its Employee Stock Option Scheme. The Board approved the appointment of Mr. Prashant Kumar as an Additional (Independent) Director for a term of five years, subject to shareholder approval.
Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE498L01015/53021b5bfc904011.pdf
Historical Stock Returns for L&T Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.05% | +1.90% | +20.98% | +7.19% | +53.63% | +245.43% |
Can L&T Finance sustain the 126% growth in Personal Loans disbursements amid rising competition and potential regulatory changes?
How will the significant expansion in the Gold Loan book impact the company's risk profile and asset quality in the coming quarters?
What strategies will L&T Finance employ to maintain Net Interest Margins as the Weighted Average Cost of Borrowing approaches a floor?
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