L&T Finance (LTF) Q1 26/27 earnings summary

Executive summary

• Achieved record consolidated PAT of ₹915.99 crore in Q1 FY27, up 29% year-on-year, with robust growth across all business lines and strong asset quality.

• Consolidated book reached ₹1,29,634 crore, up 27% year-on-year, driven by strong retail disbursements and diversified product mix.

• Continued execution of Lakshya 2031 roadmap, targeting 20%+ CAGR in book growth and sustainable profitability improvements.

• Digital transformation advanced with AI-powered platforms, enhancing operational efficiency and customer experience.

• Unaudited consolidated and standalone financial results for Q1 FY27 were approved and published, with no material misstatements reported.

Financial highlights

• Q1 FY27 disbursements: ₹23,852 crore (+36% YoY); consolidated book: ₹1,29,634 crore (+27% YoY); PAT: ₹915.99 crore (+29% YoY).

• NIM plus Fee stable at 10.47%; NIM compressed by 24 bps sequentially due to higher interest costs and surplus liquidity.

• ROA improved to 2.48% (up 11 bps YoY); ROE at 12.71% (up 185 bps YoY).

• Credit cost moderated to 2.54%, with sequential improvement of 10 bps.

• Basic and diluted EPS (consolidated) were ₹3.60 and ₹3.59, respectively.

Outlook and guidance

• Targeting 20%+ CAGR in book growth over Lakshya 2031 period, with risk-calibrated acceleration when market conditions permit.

• Committed to reducing credit cost to 2% or less by Q4 FY27 and further over time.

• ROA target of 2.8% by Q4 FY27 and 3%-3.2% by FY 2031; ROE target of 16%-18% by FY 2031.

• NIM plus Fee corridor maintained at 10%-10.5% despite cost of funds volatility.

• No deviations or variations in utilization of issue proceeds for non-convertible securities; all funds utilized as intended.