L&T Finance Limited reported a consolidated profit after tax of ₹972.76 crore for the quarter ended September 30, 2026, marking a 32.4% year-on-year increase from ₹734.88 crore in the corresponding period last year.

The NBFC’s strong performance was underpinned by robust asset growth and improved net interest margins. Total revenue from operations rose 26.5% YoY to ₹5,484.16 crore, driven by a 27.8% surge in interest income to ₹5,157.83 crore. The Board of Directors approved these unaudited financial results at its meeting held on October 15, 2026.

Financial performance highlights

The company’s loan book expanded significantly, with loans growing 12.2% YoY to ₹1,32,173.76 crore as of September 30, 2026, up from ₹1,17,821.03 crore in March 2026. This expansion directly contributed to the rise in interest income. Meanwhile, finance costs increased by 20.6% YoY to ₹1,970.47 crore, reflecting the higher cost of funds associated with the expanded balance sheet.

Asset quality and capital adequacy

Impairment on financial instruments stood at ₹628.69 crore for the quarter, a 24.4% increase YoY, indicating higher provisioning levels in line with portfolio growth. Despite this, asset quality metrics showed sequential improvement. Gross Stage 3 assets (GNPA) declined to 2.75% from 2.86% in the previous quarter, while Net Stage 3 assets (NNPA) fell to 0.85% from 0.90% QoQ. The company maintained healthy capital buffers with a Capital to Risk-Weighted Assets Ratio (CRAR) of 18.67% and a Liquidity Coverage Ratio (LCR) of 184%. The debt-equity ratio was reported at 4.21 times on a consolidated basis.

What the numbers show

A divergence between revenue growth and expense growth highlights operational leverage. While interest income grew 27.8%, total expenses grew only 24.5% YoY. Specifically, employee benefits expenses rose 24.3% to ₹737.21 crore, lagging behind the 27.8% growth in interest income. This spread suggests that the company is scaling its workforce efficiently relative to its lending expansion, contributing to the margin expansion visible in the profit before tax jump of 33.4%. Additionally, the simultaneous improvement in NPA ratios alongside significant loan book growth indicates that the bank is expanding without compromising credit standards.

The investor presentation highlights that Return on Equity (RoE) improved to 13.56% in Q2FY27, up from 11.33% in Q2FY26, driven by a 223 bps increase YoY. Return on Assets (RoA) also expanded to 2.60%, supported by a reduction in credit costs to 2.46% from 2.98% in the same period last year. The Weighted Average Cost of Borrowing (WACB) reached its lowest-ever quarterly level of 6.95%, aiding margin expansion despite rising interest rates in the broader market.

Investor communication update

On October 16, 2026, L&T Finance informed stock exchanges that it has uploaded the audio recording of the investor and analyst meet for the Q2FY27 financial performance and strategy update. The meeting was held on the same day, and the recording is available on the company’s website.

L&T Finance Limited passed all four resolutions proposed through a postal ballot process that concluded on October 6, 2026. The approvals cover the appointment of two Whole-Time Directors, one Independent Director, and an amendment to the company's Memorandum of Association.

The voting results were scrutinized by Alwyn D'Souza & Co., who confirmed the requisite majority for each resolution. The e-voting period ran from September 7, 2026, to October 6, 2026, with votes cast exclusively through remote electronic means.

Resolution outcomes

Shareholders voted overwhelmingly in favor of the proposed changes. The promoter group, holding 1,65,25,30,125 shares, cast 100% of their votes in favor of all resolutions. Public institutional shareholders showed slightly higher dissent on the Whole-Time Director appointments compared to the Independent Director appointment.

What the numbers show

A distinct divergence exists between the voting patterns for executive leadership versus governance changes. While the appointment of Whole-Time Directors Sachinn Joshi and Raju Dodti faced approximately 1.75% dissent from the total votes polled, the appointment of Independent Director Prashant Kumar received near-unanimous support with only 0.03% opposition. This suggests that public shareholders, particularly institutions, were more comfortable with the independent oversight addition than with the specific executive appointments, though both categories secured overwhelming majorities well above the statutory threshold.

Voting participation details

The total number of shareholders as on the record date of August 31, 2026, stood at 7,51,686. All voting was conducted via remote e-voting; no physical polls or postal ballot forms were utilized for this process.

• Promoter and Promoter Group: Voted 1,65,25,30,125 shares in favor across all resolutions.
• Public Institutions: Participated significantly, with over 50 crore votes polled for most resolutions.
• Public Non-Institutions: Represented a smaller fraction of total votes polled, generally under 1% of outstanding shares.