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L&T Finance reported a strong Q1FY27 performance

ICICIdirect Research 13 Jul 2026 DISCLAIMER

News: L&T Finance reported a strong Q1FY27 performance, with retail disbursements increasing to ₹23,852 crore (+36% YoY), driven by continued traction across rural business finance, urban finance and gold finance. Retail book expanded ~28% YoY to ₹1,27,450 crore, while consolidated book stood at ₹1,29,634 crore. NIM+Fees remained stable at 10.47%, supported by a calibrated portfolio mix and stable yields. PAT grew 29% YoY (12% QoQ) to ₹902 crore, with RoA improving to 2.48% and RoE to 12.71%. Asset quality trends improved further, with credit cost declining to 2.54% from 2.64% in Q4FY26, reflecting better portfolio performance and disciplined underwriting

View: Performance was supported by continued execution of the retailisation strategy, with strong momentum across key segments including rural business finance, urban finance and gold finance. Improvement in operating metrics and asset quality reflects the benefits of disciplined underwriting, AI-led risk management and portfolio mix optimisation. Continued progress under the Lakshya 2031 roadmap, along with sustained retail disbursement growth and focus on prime customers, is expected to support steady profitability and return ratios going forward

Impact: Positive

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