L&T Finance (LTF) investor relations material

Executive summary

• Q2 FY2027 retail disbursements rose 27% YoY to ₹24,027 crore; consolidated book grew 28% to ₹1,36,635 crore and PAT increased 33% to ₹972.76 crore.

• ROA improved to 2.60% and ROE to 13.56%; Lakshya 2031 targets book growth above 20%, ROA of 3.0%–3.2% and ROE of 16%–18%.

• Unaudited consolidated and standalone results received unmodified limited-review conclusions from the joint statutory auditors.

Financial highlights

• Consolidated Q2 total income was ₹5,484.23 crore, PBT ₹1,318.84 crore and PAT ₹972.76 crore; prior-year comparatives were ₹4,335.79 crore, ₹988.86 crore and ₹734.88 crore.

• Consolidated H1 total income was ₹10,727.54 crore, PBT ₹2,555.12 crore and PAT ₹1,888.75 crore.

• Management presentation reported consolidated income of ₹3,512 crore, interest income of ₹4,945 crore, NIM of ₹2,975 crore and earnings before credit cost of ₹2,145 crore.

• Consolidated NIMs plus fees were 10.48%, versus 10.22% in Q2 FY2026; operating expenses were 4.08% and credit cost was 2.46%.

• Retail book was ₹1,34,600 crore, up 29% YoY; consolidated book was ₹1,36,635 crore, up 28% YoY.

Outlook and guidance

• Lakshya 2031 targets include book growth above 20%, credit cost below 2%, FY2031 ROA of 3.0%–3.2% and ROE of 16%–18%.

• Credit cost guidance remains 2%–2.2% in Q4 FY2027; management expects ROA of 2.8%–3% by Q4 FY2027 and NIMs plus fees near the midpoint of the 10%–10.5% corridor over the next couple of quarters.

• Rural disbursements are expected to increase cautiously in Q3, with stronger business momentum during the festive quarter; personal-loan disbursements are expected to grow in Q3 and Q4 as Cyclops rollout across partners nears completion.

• Hercules customer launch is targeted for December 2026, with significant disbursement scale-up expected in Q4 FY2027 and early FY2028.