L&T Finance net profit rises 29% to ₹902 crore in Q1FY27
L&T Finance released the transcript of its Q1FY27 earnings call, detailing a 29% YoY increase in net profit to ₹902 crore and a 27% rise in the consolidated book to ₹1,29,634 crore. Retail disbursements grew 36% YoY to ₹23,852 crore, with significant contributions from Personal Loans and Gold Finance. The company emphasized its AI-native strategy under Lakshya 2031, reporting improved asset quality with credit costs moderating to 2.54%.
*this image is generated using AI for illustrative purposes only.
L&T Finance Ltd has released the transcript of its investor and analyst meet held on July 13, 2026, discussing the Q1FY27 financial performance and strategy update. The disclosure was made to stock exchanges pursuant to Regulation 30 read with Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Financial Performance
The company reported its highest ever quarterly consolidated profit after tax of ₹902 crore, representing a growth of 29% year-on-year. Total income stood at ₹5,243.31 crore, up from ₹4,259.60 crore in Q1FY26. The consolidated book crossed ₹1,29,634 crore, reflecting a year-on-year growth of 27%. The Return on Assets (RoA) improved to 2.48%, up 11 basis points YoY, while Return on Equity (RoE) increased to 12.71%.
Operational Metrics
Retail disbursements grew 36% year-on-year to ₹23,852 crore, driven by contributions from all lines of business. The Rural Business Finance segment saw disbursements of ₹6,961 crore, up 24% YoY, while the Urban Finance segment, comprising Two-Wheelers, Personal Loans, and Mortgage Loans, recorded a 57% YoY jump in disbursements to ₹10,787 crore. Personal Loans achieved its highest ever quarterly disbursement of ₹4,380 crore, growing 126% YoY. The Gold Finance business expanded its network to 343 branches, with the book size reaching approximately ₹3,829 crore, a growth of 182% YoY.
Asset Quality and Strategy
Asset quality improved with Gross Stage 3 (GS3) assets at 2.86% and Net Stage 3 (NS3) at 0.90%. Credit cost moderated to 2.54%, reflecting a sequential improvement of 10 basis points. The company highlighted its progress under the 'Lakshya 2031' strategic roadmap, focusing on building an AI-native financial institution. Key technology initiatives include Project Cyclops, an AI-powered underwriting engine, and Project Nostradamus for portfolio intelligence. The company also announced the rollout of Project Hercules, an agentic AI-based service and cross-sell platform, targeted for Q3FY27.
| 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 |
Historical Stock Returns for L&T Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.73% | +0.57% | -8.22% | +7.96% | +52.72% | +245.29% |
How will the rollout of Project Hercules in Q3FY27 specifically impact cross-selling efficiency and customer acquisition costs?
Can the 126% YoY growth in Personal Loans be sustained without deteriorating asset quality in the coming quarters?
What are the long-term margin implications of the heavy investment in AI-native infrastructure under the 'Lakshya 2031' roadmap?
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