Mumbai: L&T Finance Ltd (LTF) on October 15, 2026, reported a consolidated profit after tax of ₹975 crore for the second quarter ended September 30, 2026, marking a 33% year-on-year increase from ₹735 crore in Q2 FY26.
Financial Performance
Consolidated retail disbursements stood at ₹24,027 crore in Q2 FY27, a 27% increase from ₹18,883 crore in the corresponding quarter last year. The retail book grew by 29% year-on-year to ₹1,34,600 crore, exceeding the 20% target, from ₹1,04,607 crore in Q2 FY26.
Asset Quality and Costs
Net Interest Margins (NIMs) plus fees improved by 26 basis points year-on-year to 10.48% in Q2 FY27, compared to 10.22% in Q2 FY26. Consolidated asset quality showed improvement, with Gross Stage 3 (GS3) at 2.75% and Net Stage 3 (NS3) at 0.85% in Q2 FY27, down from 3.29% and 1.00% respectively in Q2 FY26.
Credit Cost and Returns
Return on Assets (RoA) rose to 2.60% in Q2 FY27 from 2.41% in Q2 FY26, an increase of 19 basis points. Credit cost saw a 52 basis points year-on-year reduction to 2.46% in Q2 FY27 from 2.98% in Q2 FY26, and a sequential reduction of 8 basis points from 2.54% in Q1 FY27.
Retail Segment Growth
Gold Loan business book size expanded by 242% year-on-year to ₹5,043 crore in Q2 FY27, from ₹1,475 crore in Q2 FY26, with 502 branches. Two-Wheeler disbursements increased by 26% to ₹3,170 crore in Q2 FY27, compared to ₹2,512 crore in Q2 FY26.
Personal Loans and Other Segments
Personal Loans disbursements increased by 45% year-on-year to ₹4,233 crore in Q2 FY27 from ₹2,918 crore in Q2 FY26. Rural Business Finance book size grew 22% to ₹33,465 crore, Housing Loans and Loan Against Property (LAP) book size increased 20% to ₹32,846 crore, and SME Finance book size was up 27% to ₹9,495 crore in Q2 FY27.
Digital Initiatives
The company's PLANET app surpassed 2.7 crore downloads, driving ₹2,168 crore in collections and ₹5,934 crore in business during the quarter. LTF has launched Project Hercules, an AI-based cross-sell platform, and its AI Citizen initiative has engaged over 1,200 employees, generating more than 21,000 chat sessions and creating over 5,000 agents.
Management Commentary
Sudipta Roy, Managing Director & CEO, LTF, stated that Q2 FY27 was another strong quarter with delivery across business parameters, laying a solid foundation for the Lakshya 2031 journey. Roy highlighted the company's focus on disciplined underwriting, strengthened risk guardrails, granular portfolio monitoring, and a strong collections framework.
Disclaimer: This story is based on company exchange filings and is for informational purposes only. Investors should evaluate risks before making decisions.
