L&T Finance (LTF) Q2 2026 earnings summary

Executive summary

• Achieved consolidated PAT of INR 735 crore for Q2FY26, up 6% YoY, with retail book surpassing INR 1 lakh crore and retailisation reaching 98% of the overall book.

• Highest-ever quarterly disbursement at INR 18,896 crore, up 25% YoY, led by strong performance across all business lines and secured business segments.

• Retailization strategy and technology investments (Cyclops, Nostradamus) are delivering improvements in credit cost and portfolio quality.

• S&P upgraded international rating to BBB stable, enhancing access to global capital markets.

• Unaudited consolidated and standalone financial results for the quarter and half year ended September 30, 2025, were approved and published following a Board meeting on October 15, 2025.

Financial highlights

• Consolidated NIM plus Fee stable at 10.22% QOQ, down 64 bps YoY; Net Interest Margin at 8.42%.

• Retail book at INR 104,607 crore, up 18% YoY and 5% QOQ; consolidated book at INR 107,096 crore, up 15% YoY and 5% QOQ.

• Consolidated total income for the six months ended September 30, 2025, was INR 8,595.39 crore, up from INR 7,808.63 crore YoY.

• ROA at 2.41%, down 19 bps YoY, up 4 bps QOQ; ROE at 11.33%, down 31 bps YoY, up 47 bps QOQ.

• Macro-prudential provision utilized INR 150 crore this quarter; residual stands at INR 125 crore.

Outlook and guidance

• Expect further improvement in credit profile and lower credit cost as Cyclops and Nostradamus scale up.

• Targeting normalized credit cost of 2% over the medium term, with ROA guidance of 2.8%-3% by FY27 (excluding SR recovery).

• Growth guidance maintained at 20%-25% for FY26, with risk-calibrated approach.

• H2 FY26 expected to benefit from GST 2.0 reforms, strong rural demand, and improved consumer sentiment.

• Robust volume growth across business lines anticipated to support a strong festive quarter.