L&T Finance Q2 FY27 results: net profit up 32.4% to ₹972.76 crore, revenue up 26.5%

How did L&T Finance perform in Q2 FY27?

L&T Finance reported consolidated revenue of ₹5,484 crore for Q2 FY27, up 26.5% from ₹4,336 crore in Q2 FY26 and 4.6% from ₹5,243 crore in Q1 FY27. Net profit was ₹972.76 crore, compared with ₹734.88 crore a year earlier and ₹915.99 crore in the previous quarter. Basic EPS was ₹3.89, up from ₹2.94 and ₹3.60, respectively.

Profit before tax was ₹1,319 crore, up 33.4% from ₹988.86 crore in Q2 FY26 and 6.7% from ₹1,236 crore in Q1 FY27. Profit attributable to owners was ₹975.10 crore, compared with ₹734.84 crore and ₹902.47 crore in the respective comparison periods. The stated profit margin was 17.7%, up 0.8 percentage points from Q2 FY26 and 0.2 percentage points from Q1 FY27.

EBITDA and EBITDA margin were not provided for the quarter. The results were also filed on a standalone basis, where revenue was ₹5,483.99 crore and net profit was ₹968.25 crore, compared with ₹727.71 crore in the year-ago quarter.

What changed in L&T Finance's costs and profit?

Total expenses rose 24.5% year on year to ₹4,165 crore, compared with revenue growth of 26.5%. Employee cost increased ₹144 crore to ₹737.21 crore, finance costs rose ₹336.18 crore to ₹1,970 crore, depreciation increased ₹20.79 crore to ₹71.74 crore, and other expenses rose ₹134.69 crore to ₹558.56 crore.

Other income fell by ₹0.04 crore to no exceptional amount, while tax expense increased ₹92.10 crore to ₹346.08 crore. There was no exceptional item. Profit before tax increased by ₹329.98 crore and net profit rose by ₹237.88 crore compared with Q2 FY26; the filing did not state reasons for the changes in individual cost lines.

Against Q1 FY27, total expenses were higher by ₹158.36 crore, employee cost rose ₹39.54 crore, finance costs rose ₹0.40 crore, depreciation increased ₹9.06 crore, and other expenses rose ₹52.09 crore. Tax was higher by ₹25.79 crore, while other income was unchanged and there was no exceptional item.

How did the first half of FY27 go?

For H1 FY27, L&T Finance reported consolidated revenue of ₹10,727.54 crore, up 24.8% from ₹8,595.32 crore in H1 FY26. Total income was ₹10,727.54 crore, compared with ₹8,595.39 crore, while profit before tax rose 32.2% to ₹2,555.12 crore from ₹1,932.08 crore.

Net profit for the first half was ₹1,888.75 crore, up 31.6% from ₹1,435.72 crore in H1 FY26. Basic EPS increased to ₹7.49 from ₹5.75. Revenue was higher by ₹2,132.22 crore, profit before tax by ₹623.04 crore, and net profit by ₹453.03 crore.

What do the balance sheet and cash flow show?

Total assets increased to ₹1,57,796.26 crore as of 30 September 2026 from ₹1,42,205.31 crore as of 31 March 2026. Total equity rose to ₹29,302.07 crore from ₹28,034.03 crore, while cash and cash equivalents increased to ₹5,076.94 crore from ₹4,488.94 crore. Borrowings were not provided for either balance-sheet date.

For H1 FY27, operating cash flow was negative ₹13,779.18 crore, compared with negative ₹4,140.82 crore in H1 FY26. Investing cash flow was positive ₹1,675.32 crore against negative ₹250.64 crore, while financing cash flow was positive ₹12,691.86 crore against positive ₹3,607.49 crore. Capital expenditure was ₹154.13 crore, compared with ₹79.34 crore a year earlier.

How has L&T Finance done over the last 8 quarters?

Revenue and net profit both reached their highest levels of the eight-quarter series in Q2 FY27, at ₹5,484.23 crore and ₹972.76 crore. They were lowest in Q4 FY25, when revenue was ₹4,022.92 crore and net profit was ₹635.84 crore. Revenue has risen year on year in each of the last eight quarters, while profit has risen year on year in each of the last seven quarters.

The latest quarter continued the upward direction from Q1 FY27, when revenue was ₹5,243.31 crore and net profit was ₹915.99 crore. EBITDA margin was not available for the quarterly series, so the trend in that measure could not be assessed.

What else did the company announce?

On 15 October 2026, the board approved the unaudited consolidated and standalone financial results for the quarter and half year ended 30 September 2026. The filing included a limited-review report from the statutory auditors, an auditor’s certificate, a statement showing no deviation or variation in the use of non-convertible securities’ issue proceeds, and related-party transaction disclosures.

The same-day filings did not announce a dividend, fund raise or appointment. L&T Finance also submitted its Q2 FY27 investor presentation to the exchanges. The company subsequently filed the audio recording of its investor and analyst meeting held on 16 October 2026.

What did L&T Finance's management say?

Management said the Lakshya 2031 targets remained book growth of 20%+, credit cost below 2%, RoA of 3.0%–3.2%, and RoE of 16%–18%. The presentation reported Q2 FY27 book growth of 28%, credit cost of 2.46%, RoA of 2.60%, and RoE of 13.56%, indicating that credit cost, RoA and RoE remained below the stated targets.

Management said Hercules, its agentic AI cross-sell platform, was targeted for a customer launch in December 2026, with significant disbursement scale-up expected by Q4 FY27 and early FY28. Rural products under LdMS were planned for introduction by mid-November 2026. Management also said the Cyclops underwriting engine would go live for mortgages in FY27 or H1 FY28, while Nostradamus portfolio monitoring was planned for Farm and SME in the same period.

Management highlighted the Cyclops, Nostradamus and Hercules AI stack as part of its operating model. The presentation stated that retail represented 99% of the book, the wholesale book was being wound down to ₹2,036 crore, and Gold Finance book growth was 242% year on year to ₹5,043 crore. Management identified the gap between current RoA and RoE and the Lakshya targets, credit-cost sensitivity, rural collection efficiency, Gold Finance concentration and residual wholesale exposure as areas requiring attention.

The presentation stated that Cyclops was already live for Two-Wheeler, Farm, Personal Loan, SME and Rural Business Finance, while Nostradamus was live for Two-Wheeler, Personal Loan and Rural Business Finance. Management also reported solar rooftop rollout across 100 branch locations as a Q3 and Q4 FY27 priority and said Hercules Phase 1 had been launched during Q2 FY27.

How did L&T Finance shares react?

After the filing appeared, L&T Finance shares fell 5.4% within five minutes, 6.2% within 15 minutes and 4.6% within 30 minutes. The stock closed 3.1% lower from its pre-results close on the reaction day, compared with a 0.2% rise for the median move of other Investment Company stocks, an underperformance of 3.3 percentage points.

By the next day’s close, the stock was down 3.4% from its pre-results close, against a 0.6% fall for the industry median and a 1.2% fall for the Nifty Midcap 150. By the fifth session’s close, it was down 8.0% from the pre-results close, versus a 5.0% fall for the industry median and a 4.3% fall for the Nifty Midcap 150.

Past reaction-day moves were mixed: the stock rose 0.7% on 10 July 2026, fell 1.4% on 24 April 2026 and rose 1.2% on 16 January 2026. Earlier result-day reactions included 3.9% on 18 July 2025 and negative 5.5% on 18 October 2024.

How did other Investment Company companies do?

Among 20 Investment Company companies compared for the quarter, the median revenue growth was 28.7%. Ten peers grew revenue more slowly than L&T Finance, while ten grew faster. L&T Finance’s consolidated revenue growth was 26.5% year on year.

Seventeen of the 22 peers whose profit was compared reported higher profit. The peer comparison was recorded as of 4 November 2026.