Date: October 15, 2026

Financial Performance Summary

L&T Finance Limited reported its highest ever consolidated Profit After Tax (PAT) of ₹975 crore for Q2FY27, representing a 33% year-on-year increase from ₹735 crore in Q2FY26. The company achieved its highest ever consolidated book size of ₹1,36,635 crore, up 28% YoY from ₹1,07,096 crore in Q2FY26.

Key Financial Metrics:

  • Return on Assets (RoA) improved to 2.60% in Q2FY27 from 2.41% in Q2FY26, up 19 bps YoY
  • Return on Equity (RoE) increased to 13.56% in Q2FY27 from 11.33% in Q2FY26
  • Net Interest Margin + Fees improved to 10.48% in Q2FY27 from 10.22% in Q2FY26, registering an improvement of 26 bps YoY
  • Weighted Average Cost of Borrowing (WACB) reached lowest-ever at 6.95% in Q2FY27 compared to 7.20% in Q1FY27, down 25 bps QoQ

Asset Quality and Credit Costs

The company maintained an improving trajectory in asset quality:

  • Gross Stage 3 (GS3) stood at 2.75% in Q2FY27 vs. 3.29% in Q2FY26
  • Net Stage 3 (NS3) stood at 0.85% in Q2FY27 vs. 1.00% in Q2FY26
  • Credit cost reduced to 2.46% in Q2FY27 vs. 2.98% (before macro prudential provisions) in Q2FY26, a 52 bps YoY reduction
  • Sequential credit cost reduction of 8 bps from 2.54% in Q1FY27

Retail Business Performance

Retail disbursements for Q2FY27 stood at ₹24,027 crore vs. ₹18,883 crore in Q2FY26, growth of 27% YoY. Retail book size reached ₹1,34,600 crore vs. ₹1,04,607 crore in Q2FY26, registering 29% YoY growth, exceeding the company's Lakshya 2031 target of over 20%.

Segment-wise Performance:

Rural Business Finance:

  • Book size: ₹33,465 crore (up 22% YoY from ₹27,460 crore)
  • Quarterly disbursements: ₹6,356 crore (up 1% YoY from ₹6,316 crore)

Farmer Finance:

  • Book size: ₹17,397 crore (up 9% YoY from ₹15,943 crore)
  • Quarterly disbursements: ₹1,643 crore (down 1% YoY from ₹1,654 crore)

Two-wheeler Finance:

  • Book size: ₹16,158 crore (up 24% YoY from ₹13,013 crore)
  • Quarterly disbursements: ₹3,170 crore (up 26% YoY from ₹2,512 crore)
  • Cyclops powered disbursements stood at ₹3,170 crore

Personal Loans:

  • Book size: ₹18,664 crore (up 72% YoY from ₹10,878 crore)
  • Quarterly disbursements: ₹4,233 crore (up 45% YoY from ₹2,918 crore)
  • Increased focus on risk calibrated disbursements through Big Tech Partnerships
  • Partnered with Pine Labs to introduce Agentic Commerce and Payments on L&T Finance PLANET App

Housing Loans and Loan Against Property (LAP):

  • Book size: ₹32,846 crore (up 20% YoY from ₹27,407 crore)
  • Quarterly disbursements: ₹2,926 crore (up 8% YoY from ₹2,713 crore)

SME Finance:

  • Book size: ₹9,495 crore (up 27% YoY from ₹7,465 crore)
  • Quarterly disbursements: ₹1,820 crore (up 24% YoY from ₹1,468 crore)

Gold Finance:

  • Book size: ₹5,043 crore (up 242% YoY from ₹1,475 crore)
  • Quarterly disbursements: ₹3,237 crore (up 229% YoY from ₹983 crore)
  • Exited Q2FY27 with 502 branches, cumulative addition of 372 new branches since acquisition in June 2025
  • Launched integrated marketing campaign featuring brand ambassador Jasprit Bumrah under tagline "Koi Bhi Sapna Hold Mat Karo, L&T Finance Gold Loan Karo"
  • Campaign covered key markets across eight states and one union territory, reaching consumers through approximately 150 LTF branches

Technology and Digital Initiatives

The company is accelerating its transformation to an AI-native lender through Lakshya 2031 strategic plan:

PLANET App Performance:

  • Surpassed 2.7 crore downloads
  • Services 94% of total service requests
  • Driven collections of ₹2,168 crore during the quarter
  • Generated business of ₹5,934 crore
  • Introduced dedicated rural interface with multilingual capabilities including Hindi

Partner PLANET App:

  • Dedicated digital platform for dealer network engagement
  • Provides business metrics, retail performance insights, and operational services
  • Enhances transparency, convenience and efficiency across dealer ecosystem

AI Implementation Outcomes:

Project Hercules:

  • Agentic AI-based cross-sell platform launched in beta during Q2FY27
  • Powered by new Lead Management System (LdMS)
  • Live for upsell and cross-sell opportunities across urban products
  • Rural products targeted for introduction by mid-November 2026

AI Citizen Initiative:

  • Engaged over 1,200 employees
  • Generated more than 21,000 chat sessions
  • Enabled creation of over 5,000 agents
  • Leadership training and expanding network of AI Champions

In-house AI Solutions and Co-pilots:

  • Project Helios (underwriting co-pilot for SME, Home Loan and Personal Loan): Processed ~80,000 files, reduced underwriting TAT from 21 to 16 hours for SEP and from 37 to 22 hours for SENP
  • Project Orion (Nostradamus portfolio-management co-pilot): Facilitated ~5,000 conversational self-service business queries
  • Project ShighraM (mortgage legal process automation co-pilot): Processed over 9,500 files across 11 vernacular languages
  • MOPPA (Mortgage Policy and Pricing Assistant): Handles over 240 queries per day across 15 vernacular languages
  • Project Argus (SME fraud-screening co-pilot): Processed approximately 9,700 files

Distribution Network Expansion

The company maintains a granular pan-India retail franchise with:

  • Geographic presence in around 2 lakh villages and over 450 cities/towns
  • Over 3,100 branches in urban and rural geographies
  • Activated 25,670 new villages for Rural Group Loans and MFI
  • Active sourcing points: 9,453 for Two-wheeler Finance, 2,766 for Farm Equipment Finance, 298 for Home Loan/LAP
  • 502 active Gold Finance branches as of Q2FY27

Management Commentary

Mr. Sudipta Roy, Managing Director & CEO, commented that Q2FY27 was another strong quarter laying a solid foundation for the Lakshya 2031 journey. He highlighted the strength of the diversified retail franchise, execution discipline, and focus on sustainable, risk-calibrated growth. Despite macroeconomic uncertainties, inflation pressures, and seasonal headwinds, the resilient business model enabled effective navigation while expanding key verticals like Gold Finance, Micro LAP, Personal Loans, and Two-Wheeler Finance.

The approach continues to be guided by disciplined underwriting, strengthened risk guardrails, granular portfolio monitoring and strong collections framework. Investments in artificial intelligence through AI-powered credit administration and portfolio management frameworks are expected to enhance credit decision-making, identify early warning signals and drive greater operational efficiency.

Corporate Background

L&T Finance Ltd. is a leading Upper-Layer Non-Banking Financial Company (NBFC) in India, rated 'AAA' by four leading domestic rating agencies. S&P Global Ratings affirmed long-term Issuer Credit Rating at "BBB/Stable" and short-term issuer credit rating at "A-2". Fitch Ratings affirmed Long-Term Foreign and Local-Currency Issuer Default Ratings of "BBB-" with a Stable outlook. The company has over 3 crore customer database being leveraged for cross-sell, up-sell, and new customer identification.