L&T Finance Q2 FY27 Profit Rises 33% to ₹973 Crore

Q2 performance sets a new profit record

L&T Finance Ltd reported consolidated profit after tax of ₹972.76 crore for the second quarter of FY27. The company described the quarter as its highest-ever consolidated profit performance. Management said consolidated profit after tax was up 33% year-on-year. Total income for the quarter stood at ₹5,484.23 crore, compared with ₹4,335.79 crore in the corresponding period of the previous year. Pre-tax profit rose to ₹1,318.84 crore from ₹988.86 crore a year earlier. The results were released alongside the company’s investor presentation and Q2 FY27 earnings-call update. The company also intimated investors about the audio recording of its analyst and investor meeting.

Retail disbursements drive business momentum

Quarterly retail disbursements increased 27% year-on-year to ₹24,027 crore. Management said every line of business contributed to this growth. Higher disbursements are significant for a retail-focused lender because they support the expansion of its loan book. L&T Finance reported a retail book of ₹1,34,600 crore at the end of the quarter. This represented year-on-year growth of 29%, according to the company’s earnings summary. The company’s consolidated book stood at ₹1,36,635 crore. Management reported 28% year-on-year growth in the consolidated book.

Income and profit figures

The company’s reported figures show growth across total income, profit before tax and profit after tax. Consolidated income was stated at ₹3,512 crore in the management presentation, while reported total income in the quarterly financial results was ₹5,484.23 crore. The presentation also reported interest income of ₹4,945 crore. These are separately disclosed measures and should not be treated as interchangeable. The quarterly financial statement reported profit after tax of ₹972.76 crore. During the earnings call, management rounded this figure to ₹975 crore. The exact reported quarterly result is ₹972.76 crore.

Key Q2 FY27 financial data

Margins and operating measures improve

Consolidated net interest margin plus fees stood at 10.48% in Q2 FY27. This was higher than 10.22% reported for Q2 FY26. Net interest margin and fee income are important indicators of the lender’s income generation from its lending operations and associated business activities. Management reported operating expenses at 4.08% for the quarter. Credit cost was reported at 2.46%. These metrics provide context for the company’s reported profitability, alongside loan-book growth and disbursement activity. The company also reported earnings before credit cost of ₹2,145 crore in its management presentation.

Returns move higher during the quarter

L&T Finance reported return on assets of 2.60% in Q2 FY27. This compared with 2.48% in the previous quarter. The company’s earnings summary also placed return on equity at 13.56%. Return measures are closely followed by investors because they show the profitability generated from the lender’s assets and shareholder capital. The improvement in return on assets came as the company expanded its retail loan book and reported higher profit. The disclosed numbers do not provide a separate segment-wise profitability breakdown in the supplied material. Investors will therefore continue to assess future disclosures for the sustainability of margins, expenses and credit costs.

First-half results add context

For the first half of FY27, L&T Finance reported consolidated total income of ₹10,727.54 crore. Consolidated profit before tax for the six-month period was ₹2,555.12 crore. Consolidated profit after tax was ₹1,888.75 crore. The half-year figures indicate that the second-quarter performance formed a substantial part of the company’s earnings for the period. The company said its unaudited consolidated and standalone results received unmodified limited-review conclusions from the joint statutory auditors. This means the auditors did not report modifications to their limited-review conclusions on the results disclosed.

Management outlines Lakshya 2031 targets

Management referred to its Lakshya 2031 targets during the Q2 update. The targets include loan-book growth above 20%, return on assets of 3.0% to 3.2%, and return on equity of 16% to 18%. These are stated business objectives rather than reported Q2 outcomes. The current quarter’s return on assets of 2.60% and return on equity of 13.56% provide the latest disclosed reference points against those targets. Management’s focus in the call was on profitable and quality-led growth. The company did not provide additional financial guidance in the supplied material beyond the stated long-term targets.

What the update means for investors

The Q2 FY27 update shows that L&T Finance delivered higher profit, income, retail disbursements and loan-book growth compared with the prior-year period. Its reported margin-plus-fee measure and return on assets also improved. At the same time, credit cost of 2.46% remains a relevant operating metric for investors tracking lending quality and future profitability. The company’s retail book accounted for most of the consolidated book, underlining the importance of retail lending to its operating strategy. The investor presentation and earnings-call recording give market participants access to management’s financial-performance and strategy discussion. The next set of financial disclosures will provide further information on whether the reported growth and return trends continue.

Conclusion

L&T Finance closed Q2 FY27 with consolidated profit after tax of ₹972.76 crore and total income of ₹5,484.23 crore. Retail disbursements of ₹24,027 crore and a consolidated book of ₹1,36,635 crore were the main operating highlights. Management has linked its longer-term strategy to growth, profitability and return targets under Lakshya 2031. Investors can track subsequent quarterly results and company disclosures for updates on these measures.