L&T Finance Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 5,484.16 Cr (+26.51% YoY) and PAT growth of +32.37% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 15, 2026 |
|---|
| Quarter | Q2 FY 2026-2027 |
|---|
| Revenue (Q2) | Rs. 5,484.16 Cr (+26.51% YoY) |
|---|
| PAT (Q2) | Rs. 972.76 Cr (+32.37% YoY) |
|---|
| EBITDA margin | 39.14% (+167 bps YoY) |
|---|
| EPS (Q2) | Rs. 3.89 (+32.31% YoY) |
|---|
| Market cap | Rs. 65,756.66 Cr |
|---|
| CMP | Rs. 262.00 |
|---|
Quarter Snapshot
L&T Finance grew revenue 26.51% and PAT 32.37% YoY, with PPOP margin up 167 bps to 39.14% and cost-to-income at 38.92%, inside the <40% guidance threshold. Credit cost moderated to ~2.01% annualized from 2.54% in Q1 — already within the 2-2.2% Q4 FY27 exit band — while the loan book grew ~24% annualized against the 20%+ Lakshya 2031 target and CRAR improved to 18.67%. RoA of ~2.59% remains 21 bps short of the 2.8% Q4 FY27 exit commitment with the required H2 run-rate flagged as a stretch, and opex growth of 28.04% outpaced revenue growth of 26.51%.
Key Investment Insights
Key Positives
- Revenue from operations grew 26.51% YoY to Rs.5,484.16 Cr; interest income grew 27.73% YoY to Rs.5,157.83 Cr
- NII grew 32.64% YoY to Rs.3,187.36 Cr; NII-to-interest-income yield expanded 227 bps YoY to 61.79%
- PAT grew 32.37% YoY to Rs.972.76 Cr; basic EPS grew 32.31% YoY to Rs.3.89
- PPOP grew 32.13% YoY to Rs.2,146.25 Cr; PPOP margin expanded 167 bps YoY to 39.14%
- Cost-to-income at 38.92%, below the <40% guidance threshold and 75 bps better YoY
- Credit cost moderated to ~2.01% annualized from 2.54% in Q1 FY27, within the 2-2.2% Q4 FY27 exit guidance band; NS3 improved to 0.85% from 0.90% QoQ
- Loan book grew 12.17% in H1 to Rs.1,32,173.76 Cr (~24%+ annualized vs 20%+ Lakshya 2031 target); H1 net disbursements up 65.5% YoY to Rs.15,642.65 Cr
- CRAR improved to 18.67% from 17.89% in Q1; LCR at 184%; RBF collection efficiency at 99.8%
Risk Factors
- Operating expenses grew 28.04% YoY, faster than revenue growth of 26.51%; cost-to-income rose 21 bps QoQ to 38.92% from 38.71%
- RoA of ~2.59% annualized remains 21 bps below the 2.8% Q4 FY27 exit commitment; the required ~3.0% H2 run-rate is flagged as a stretch
- Net loss on fair value changes rose 37.51% QoQ to Rs.74.10 Cr; combined fair value and derecognition losses of Rs.198.72 Cr pulled PPOP (PBT+impairment basis) to Rs.1,947.53 Cr vs Rs.2,146.25 Cr
- Project finance book shows stress: 2 accounts (Rs.510.51 Cr) under invoked resolution and 1 resolution plan failed (Rs.218.93 Cr)
- Cash tax rate at 35.79% of PBT vs 20.73% in Q2 FY26; current tax up 130.18% YoY to Rs.471.95 Cr, offset by a Rs.125.87 Cr deferred tax credit