L&T Finance Q2 Net Profit Rises 33% to ₹968 Crore on Cost Control
L&T Finance Ltd (NSE:LTF) reported a 33% increase in net profit for the second quarter of FY27, reaching ₹968 crore compared to ₹727.71 crore in the year-ago period. On a sequential basis, profit grew by over 8%. Net interest income expanded 32.6% year-on-year to ₹3,187.36 crore, while gross disbursals rose 27% to ₹24,027 crore. Shares traded up 1.24% at 262 INR following the results.
The profit growth was driven by strict operating cost control and higher margins. Net interest margins and fees rose 20 basis points to 10.48%. Asset quality also improved, with gross stage three delinquency assets dropping to 2.53% from 3.29% a year earlier. These gains occurred despite monsoon disruptions in July and August, which led the lender to temporarily slow disbursements in rural business finance and farm equipment finance in favor of secured gold loans and SME finance.
Investors will monitor how quickly rural lending activity recovers post-monsoon. Future quarters will highlight whether demand in farm and rural finance rebounds while operating expenses remain contained during ongoing expansion.
Key points
- Q2 FY27 net profit reached ₹968 crore, up 33% year-on-year from ₹727.71 crore.
- Net interest income grew 32.6% YoY to ₹3,187.36 crore, while total disbursals rose 27% to ₹24,027 crore.
- Asset quality improved as gross stage 3 delinquencies dropped to 2.53% from 3.29% a year ago.
- Monsoon disruptions caused a 33% sequential drop in farmer finance disbursements to ₹1,643 crore.
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How we writeDisclaimerQuestions and answers
What was L&T Finance's net profit in Q2 FY27?
L&T Finance reported a net profit of ₹968 crore for Q2 FY27, up 33% from ₹727.71 crore in the same period of the previous fiscal year.
Why did L&T Finance slow down rural lending in Q2 FY27?
The company intentionally slowed rural business and farm equipment disbursements due to monsoon-related overhang in July and August, focusing growth on gold loans and SME finance instead.
How did L&T Finance's asset quality change in Q2 FY27?
Asset quality improved, with gross stage three delinquency assets falling to 2.53% from 3.29% a year earlier, and net stage three assets declining to 0.85% from 1.00%.