L&T Finance Limited (NSE: LTF) Posts Record 33% Profit Growth

• Profit After Tax (PAT): ₹ 975 Cr, up 33 % YoY, marking a record quarter.
• Consolidated book size: ₹ 1,36,635 Cr, surged 28 % YoY, the largest ever for L&T Finance Limited (LTF) (NSE & BSE: LTF).
• Retail disbursements: ₹ 24,027 Cr, rose 27 % YoY, driven by strong growth across loan verticals.
• Net Interest Margin (NIM + Fees): 10.48 %, up 26 bps YoY, supporting higher profitability.
• Return on Assets (RoA): 2.60 %, improved 19 bps YoY.
• Return on Equity (RoE): 13.56 %, up from 11.33 % (post‑macro).
• Weighted Average Cost of Borrowing (WACB): 6.95 %, down 25 bps QoQ, the lowest level recorded.
• Credit Cost: 2.46 %, fell 52 bps YoY (and 8 bps QoQ) thanks to tighter credit administration and AI‑enabled risk controls.
• Asset quality:
  • Gross Stage‑3 (GS3) Ratio: 2.75 % (down from 3.29 %).
  • Net Stage‑3 (NS3) Ratio: 0.85 % (improved from 1.00 %).

Segment‑wise highlights

• Gold Finance: book size jumped 242 % to ₹ 5,043 Cr; disbursements up 229 % to ₹ 3,237 Cr; branch network expanded to 502 locations.
• Personal Loans: book size surged 72 % to ₹ 18,664 Cr; disbursements rose 45 % to ₹ 4,233 Cr.
• Two‑Wheeler Finance: book up 24 % to ₹ 16,158 Cr; disbursements up 26 % to ₹ 3,170 Cr.
• Rural Business Finance: book grew 22 % to ₹ 33,465 Cr; disbursements flat (+1 %).
• Other retail segments (Housing, SME, Farmer Finance) posted double‑digit book growth (20‑27 %).

Technology & AI initiatives

• PLANET app reached > 2.7 crore downloads, handling 94 % of customer service requests; generated ₹ 2,168 Cr in collections and ₹ 5,934 Cr in business in Q2 FY27.
• Multiple AI‑driven pilots (Project Hercules, AI Citizen, Project Helios, Orion, ShighraM, Argus) are automating underwriting, portfolio management, fraud screening and mortgage processing, underpinning the “Lakshya 2031” AI‑native strategy.

Distribution & branch network

• > 3,100 branches (urban + rural) covering ~2 lakh villages and > 450 cities/towns.
• 25,670 new village activations for Rural Group Loans & MFI in Q2 FY27.
• Active sourcing points: 9,453 (Two‑Wheeler), 2,766 (Farm Equipment), 298 (Home/LAP).

Management commentary (no explicit forward guidance): MD & CEO Sudipta Roy described Q2 FY27 as “yet another strong quarter,” highlighting diversified retail franchise, disciplined execution, and risk‑calibrated growth despite macro‑economic headwinds.