L&T Finance Q2FY27 PAT at ₹975 Cr, Up 33% YoY; Retail Disbursements Rise 27%
L&T Finance reported Q2FY27 consolidated PAT of ₹975 Cr, up 33% YoY. Consolidated book grew 28% YoY to ₹1,36,635 Cr. Retail disbursements rose 27% YoY to ₹24,027 Cr. Credit costs moderated to 2.46%, aiming for 2%-2.2% by Q4FY27. Project Hercules cross-sell engine to be fully implemented by Dec 2026.
The announcement details strong financial performance, including record profits and significant growth in key metrics like disbursements and book size. The company's progress on strategic initiatives like Project Hercules and its outlook on Lakshya 2031 goals, along with its detailed financial performance, have a high impact on investors.
The company reported strong financial results with record profits, significant YoY growth in PAT and disbursements, and improved credit cost metrics. Positive outlook on future growth and strategic initiatives further contribute to the positive sentiment.
L&T Finance reported its highest-ever consolidated profit after tax (PAT) of ₹975 crore for the second quarter of FY2026-27, marking a significant 33% year-on-year growth. The company's consolidated book grew by 28% YoY to ₹1,36,635 crore, with a Return on Assets (RoA) of 2.60%.
Retail disbursements saw a strong surge of 27% YoY, reaching ₹24,027 crore, driven by contributions from all business lines. This growth was attributed to a strong customer acquisition funnel, granular distribution channels, digital capabilities, and an AI-powered credit administration framework, Project Cyclops. The company consciously moderated rural disbursement momentum and tightened risk guardrails due to monsoon uncertainties but plans to carefully increase this momentum now.
Credit costs moderated to 2.46% this quarter, an 8 bps sequential improvement, supported by collections and AI-led portfolio management. L&T Finance is confident of achieving its guided credit cost corridor of 2%-2.2% by Q4FY27. Net Interest Margins (NIMs) plus Fees remained stable at 10.48%, within the guided corridor of 10%-10.5%, due to astute liability management. Operating expenses were managed at 4.08% despite investments in branches and technology.
The company also provided an update on the IRDAI consultation paper on insurance distribution, stating that it would navigate the potential impact with minimal disruption to its Lakshya 2031 goals. Key initiatives like Project Hercules (cross-sell engine) and the Payments platform are progressing, with Hercules implementation across businesses expected by early December 2026 and a showcase at L&T Finance Investor Digital Day on December 15, 2026.
L&T Finance is on track with its Lakshya 2031 goals, aiming for a book growth CAGR of over 20%, credit costs of 2% or less, RoA of 3.0%-3.2% by FY31, and RoE in the range of 16%-18% by FY31. The Gold Loan business showed remarkable growth with disbursements of ₹3,237 crore, a 229% YoY increase, and a closing book of ₹5,043 crore, up 242% YoY.
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