L&T Finance Ltd earnings date
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L&T Finance Ltd (LTF) Q2 2027 Earnings Report
IN:LTF Q2 2027 EPS Results
- Actual EPS
- INR 3.88
- Consensus EPS
- INR 3.71
- Beat/Miss
- Beat by +INR 0.17
- One Year Ago EPS
- INR 2.90
IN:LTF Q2 2027 Revenue Results
- Actual Revenue
- INR 52.86B
- Expected Revenue
- INR 34.29B
- Beat/Miss
- Beat by +INR 18.56B
- YoY Revenue Growth
- +25.94%
Earnings Announcement Details
- Quarter
- Q2 2027
- Date
- 10/15/2026
- Time
- Before Open
- Conference Call
- Thursday, October 15, 2026
L&T Finance Ltd's next earnings date is estimated for January 8, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2027 Earnings Call Summary
The call was strongly positive overall. The company reported record profit, robust book and disbursement growth, improving credit costs and returns, stable NIMs plus fees, rapid gold loan expansion, and progress on AI, cross-sell, payments, and Lakshya 2031 initiatives. The main challenges were macroeconomic uncertainty, below-average and uneven monsoon conditions, moderated rural and farm disbursements, higher expected interest rates, the draft IRDAI commission proposal, and temporary implementation-related softness in personal loan disbursements. Management remained confident that risk controls, technology investments, insurance and guarantee coverage, and new revenue initiatives would support the company's stated objectives.
Management reiterated a guided credit cost corridor of 2%-2.2% by quarter four FY 2027, NIMs plus fees in the range of 10%-10.5%, and a 2.8%-3% RoA corridor exit quarter four FY 2027; Lakshya 2031 targets include book growth CAGR of 20%+, credit costs of 2% or less, RoA in the range of 3%-3.2%, and RoE in the range of 16%-18% by FY 2031. The company expects a little upward bias in rural disbursements in Q3, expects rural cash flow to improve after the kharif crop, expects personal-loan disbursements to grow in Q3 and Q4, and plans to take the personal-loan monthly run rate from INR 1,500 crore to an interim INR 1,700 crore to INR 1,800 crore before another calibration. Gold-loan branches are expected to reach about 800 by the end of this year, against a plan of about 2,000 branches, with gold-loan AUM targeted at 14%-15% of overall AUMs, or INR 40,000 crore-INR 45,000 crore, by the end of Lakshya 2031; the company also wants to set up 500 branches for gold and 200 branches for micro LAP. The company said Max two to three repo rate hikes is what is expected, NIMs plus fees should remain around the mid of the 10% to 10.5% trajectory over the next couple of quarters, cost to income ratio is about 39% with an objective to drive it further downwards, and FY 2028 is expected to include AI-enabled prepaid payment products subject to the receipt of the PPI license from RBI.
- Record Profitability and Strong ReturnsConsolidated profit after tax reached a highest-ever INR 975 crores in Q2 FY 2027, up 33% year-on-year. RoA improved to 2.60%, up 19 basis points year-on-year, while RoE increased to 13.56%, up 223 basis points year-on-year.
- Robust Book Growth and Retail DisbursementsThe consolidated book reached INR 1,36,635 crores, up 28% year-on-year, while the retail book stood at INR 1,34,600 crores, up 29% year-on-year. Quarterly retail disbursements increased 27% year-on-year to INR 24,027 crores, with contributions from all lines of business.
- Credit Cost Continued to ModerateCredit cost declined to 2.46% in Q2 FY 2027 from 2.54% in Q1 FY 2027, an 8-basis-point sequential improvement, supported by collections excellence and AI-led portfolio management. Management reiterated confidence in achieving its guided 2%-2.2% credit cost corridor by Q4 FY 2027.
- Stable NIMs Plus Fees and Lower Borrowing CostsNIMs plus fees remained stable at 10.48% versus 10.47% in Q1 FY 2027 and 10.22% in Q2 FY 2026, within the guided 10%-10.5% corridor. The weighted average cost of borrowing declined by 25 basis points during the quarter through liability management, including lower-cost borrowings, PTC transactions, commercial paper, and appropriately timed medium- and long-term funding.
- Operating Efficiency Despite Continued InvestmentOpEx remained range-bound at 4.08% despite continued investments in branch rollouts and technology. Management stated that collection costs have been declining as Cyclops-underwritten books reduce roll-forwards and collection bots improve efficiency. The cost-to-income ratio declined below 40% to approximately 39%.
- Strong Urban Finance PerformanceUrban finance disbursements increased 27% year-on-year to INR 10,328 crores, and the urban finance book grew 32% year-on-year to INR 67,668 crores. Two-wheeler disbursements rose 26% year-on-year to INR 3,170 crores, with the book up 24% to INR 16,158 crores and 92% of Q2 disbursements in the prime segment.
- Personal Loans Reached Record DisbursementsPersonal loan disbursements reached a highest-ever quarterly level of INR 4,233 crores, up 45% year-on-year. The personal loan book increased 72% year-on-year to INR 18,664 crores, and large partnerships accounted for 40% of personal loan originations. Personal loan originations with Airtel were operationalized during the quarter.
- Mortgage and SME GrowthMortgage disbursements increased 8% year-on-year to INR 2,926 crores, with the mortgage book up 20% year-on-year to INR 32,846 crores. The company launched RM Loans for the economical housing segment in non-metro and peripheral urban geographies, with ticket sizes between INR 20 lakhs and INR 50 lakhs. SME disbursements rose 24% year-on-year to INR 1,820 crores, while the SME book grew 27% to INR 9,495 crores.
- Rapid Gold Loan ExpansionGold loan disbursements increased 229% year-on-year to INR 3,237 crores, and the closing book grew 242% year-on-year to INR 5,043 crores. The company launched 172 new branches in the first half of FY 2027, reaching 502 active branches, with 110 branches exceeding INR 15 crores in point-of-sale value. Management expects approximately 800 branches by the end of the year and has a longer-term plan to expand to about 2,000 branches.
- Gold Loans Positioned as a Strategic BusinessManagement stated that gold loan branches are reaching critical size in approximately six months and that the company has not experienced a loss episode in the business so far. Over the last year, there were no more than three auction episodes, with recovery exceeding 140% of the amount due. The company targets gold loan AUM of 14%-15% of overall AUM by the end of Lakshya 2031, equivalent to INR 40,000 crore-INR 45,000 crore.
- Expansion of Sampoorna Multi-Product BranchesThe company scaled its Sampoorna network to 150 branches across the country, including 33 Sampoorna branches integrated with the gold loan business. The model is intended to transform single-product locations into integrated sales and service hubs supporting cross-sell and customer relationship management.
- Project Hercules and Cross-Sell MomentumPhase I of the Hercules agentic AI-based cross-sell engine was implemented across selected business lines during Q2 FY 2027. Gold loan cross-sell leads generated by other businesses were converting at more than 14% as of the first week of October 2026. The full complement of Hercules is expected to be implemented by early December 2026.
- Payments Platform DevelopmentThe company's UPI stack is live and undergoing closed user group testing. L&T Finance is building an agentic commerce payment stack with Pine Labs, plans to unveil the effort at RAISE 2026, and has applied for a prepaid issuer license. AI-enabled prepaid payment products are planned for FY 2028, subject to receipt of the PPI license from RBI.
- AI and Technology Adoption Across the OrganizationThe AI Citizen program has equipped more than 1,200 employees with the Google Enterprise Agent Platform and a continuous learning ecosystem. Employees had already created 5,730 agents for regular business tasks shortly after the initiative went live. Cyclops, Nostradamus, Helios, and other AI-powered tools are being deployed across underwriting, portfolio management, collections, and risk monitoring.
- Evidence of AI-Enabled Risk and Collection BenefitsManagement stated that Nostradamus identified approximately INR 50 crores of potential benefit between collection-cost savings and early resolution of hotspots during H1 in the two-wheeler and personal loan businesses. In SME, bounce rates in the Cyclops-related portfolio were reported at exactly 50% of legacy portfolio levels. Rural business finance collection efficiency remained in the 99.7%-99.8% range.
- Progress Toward Lakshya 2031 GoalsBook growth of 28% in Q2 FY 2027 exceeded the Lakshya 2031 target of 20%+ CAGR. Management reiterated its long-term targets of credit cost at 2% or less, RoA of 3%-3.2% by FY 2031, and RoE of 16%-18% by FY 2031, while maintaining a near-term objective of reaching a 2.8%-3% RoA corridor in Q4 FY 2027.
- Resilient Domestic Demand EnvironmentManagement highlighted India's Q1 FY 2027 real GDP growth of 7.8%, upgrades to full-year FY 2027 GDP growth expectations by the RBI, World Bank, and OECD, and continued robust credit demand. Domestic demand, private consumption, investment, exports, services activity, employment conditions, and manufacturing activity were described as resilient or broadly stable.
- Risk Mitigation Through Insurance and GuaranteesThe company participates in the CGFMU and CGTMSE schemes and has taken parametric insurance for selected rural exposures. Management stated that approximately 80% of the SME portfolio is covered through CGTMSE, which reduces risk weights and provides capital efficiency. Parametric insurance also generated a significant recovery related to recent flooding in Bihar.
IN:LTF Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 08, 2027 | 2027 (Q3) | 4.01- | 3 | ― | ― |
| Oct 15, 2026 | 2027 (Q2) | 3.713.88 | 2.9 | 33.79% (+0.98) | |
| Jul 10, 2026 | 2027 (Q1) | 3.453.60 | 2.8 | 28.57% (+0.80) | |
| Apr 24, 2026 | 2026 (Q4) | 3.193.21 | 2.55 | 25.88% (+0.66) | |
| Jan 16, 2026 | 2026 (Q3) | 3.113.00 | 2.5 | 20.00% (+0.50) | |
| Oct 15, 2025 | 2026 (Q2) | 2.952.90 | 2.79 | 3.76% (+0.10) | |
| Jul 18, 2025 | 2026 (Q1) | 2.682.80 | 2.77 | 1.27% (+0.04) | |
| Apr 25, 2025 | 2025 (Q4) | 2.482.55 | 2.23 | 14.35% (+0.32) | |
| Jan 20, 2025 | 2025 (Q3) | 2.412.50 | 2.58 | -2.91% (-0.07) | |
| Oct 18, 2024 | 2025 (Q2) | 2.792.79 | 2.4 | 16.46% (+0.40) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
