L&T Finance , a prominent non-banking financial company (NBFC), has reported a 5.4% increase in its consolidated net profit for the second quarter. The company's net profit rose to 7.34 billion rupees, up from 6.96 billion rupees in the same period last year.

Revenue Growth

L&T Finance's revenue showed a robust growth of 7.8%, increasing to 43.35 billion rupees from 40.20 billion rupees year-over-year. This growth in both revenue and profit indicates the company's resilience and ability to expand its business operations.

Record Retail Loans

L&T Finance achieved record retail loans of 188.83 billion rupees in Q2, marking a 25% year-over-year increase. This significant growth in retail lending underscores the company's strong performance in the consumer finance segment.

Expansion Plans

The company plans to expand its branch network by opening 200 more branches by FY26, targeting 330 gold loan branches. This expansion strategy aims to strengthen L&T Finance's presence in key markets and enhance its service delivery capabilities.

Financial Performance Overview

To provide a clearer picture of L&T Finance's Q2 performance, here's a breakdown of the key financial metrics:

All figures in billion rupees

The company's improved financial performance can be attributed to various factors, including significant growth in its retail loan book and efficient cost management.

Market Outlook

A company executive expressed optimism about accelerated growth in H2, citing expected festive demand and support from GST 2.0 changes. This outlook suggests potential for further growth in the coming quarters.

Conclusion

L&T Finance's Q2 results show consistent growth in revenue, profit, and particularly strong performance in retail loans. The company's expansion plans and market outlook indicate a strategic focus on capitalizing on market opportunities. As the financial services sector continues to evolve, L&T Finance's performance will be closely watched in the NBFC sector in India.

L&T Finance Limited, formerly known as L&T Finance Holdings Limited, has successfully raised Rs 1,050 crores through the issuance of non-convertible debentures (NCDs). This move demonstrates the company's strategic approach to capital raising and debt management.

Key Details of the NCD Issuance

Coupon Payment Schedule

The first coupon payment is scheduled for November 10, 2025, with subsequent annual payments. Here's a breakdown of the coupon payment schedule:

Security and Default Provisions

The debentures are secured by an exclusive first ranking charge through hypothecation over identified fixed deposits and standard receivables of the issuer. The security coverage is equivalent to 1 time the principal amount and coupon outstanding.

In the event of a payment default, L&T Finance will be liable to pay an additional interest of 2% per annum over the coupon rate for the defaulting period.

Implications and Outlook

This successful NCD issuance by L&T Finance Limited indicates the company's ability to attract institutional investors and leverage debt markets for its funding needs. The competitive coupon rate of 7.2190% suggests a favorable credit perception of the company in the market.

For investors, these NCDs offer a fixed income opportunity with a tenure of just over three years, backed by the reputation of the L&T Group. The listing on the NSE is expected to provide liquidity to the investors.

As the financial services sector continues to evolve, such debt issuances play a crucial role in providing companies like L&T Finance with the capital needed for growth and expansion.