L&T Finance reported a strong Q1 FY27, with a record consolidated profit after tax of ₹902 Cr, up 29% YoY. The consolidated book crossed ₹1,29,634 Cr, a 27% YoY growth. Retail disbursements surged 36% to ₹23,852 Cr. The company emphasized its strategic focus on AI-driven initiatives under Lakshya 2031, aiming for sustainable growth and improved profitability.
L&T Finance Records Strong Q1 FY27 Performance
L&T Finance Ltd. announced its financial results for the first quarter of FY27, showcasing a period of robust profitable and quality-led growth. The company achieved its highest ever quarterly consolidated profit after tax, reaching ₹902 Crore, marking a significant year-on-year increase of 29%. This impressive financial performance was driven by strong execution and strategic initiatives.
Key Financial Highlights
The consolidated book of business witnessed another milestone, crossing ₹1,29,634 Crore, reflecting a healthy 27% year-on-year growth. The Return on Assets (RoA) stood at 2.48%, an improvement of 11 basis points over the previous year. This growth was underpinned by robust quarterly retail disbursements totaling ₹23,852 Crore, up by 36% year-on-year, with contributions from all business lines. The company’s Return on Equity (RoE) increased to 12.71% from 10.86% in the corresponding quarter of the previous fiscal year.
Macroeconomic Outlook and Strategy
Mr. Sudipta Roy, Managing Director & CEO, highlighted the resilient Indian macroeconomic fundamentals amidst global volatility. He discussed the company’s strategic priorities under its ‘Lakshya 2031’ roadmap, which focuses on delivering sustainable growth, improving credit cost, and enhancing profitability. The company is prioritizing AI-driven capabilities, cross-selling, and productivity enhancement to build a future-ready financial institution.
Technological Advancements and AI Integration
L&T Finance is making substantial investments in its technology infrastructure, aiming to become an ‘AI-native’ financial institution. Projects like Cyclops, Nostradamus, Helios, and Orion are being implemented to enhance underwriting, portfolio management, and customer engagement. The company is also building its own private cloud infrastructure to support its AI workloads, anticipating significant cost efficiencies over the long term.
Business Segment Performance
The company provided updates on its various business segments. Rural Business Finance saw disbursements of ₹6,961 Crore (up 24% YoY), with a book size of ₹32,493 Crore (up 22% YoY). Farmer Finance disbursements grew by 11% to ₹2,453 Crore, with a book size of ₹17,514 Crore. Urban Finance, comprising Two-Wheelers, Personal Loans, and Mortgage Loans, reported a 57% YoY jump in disbursements to ₹10,787 Crore, increasing the overall book size to ₹63,615 Crore (up 32% YoY). Personal Loans achieved its highest ever quarterly disbursement of ₹4,380 Crore, a 126% YoY growth. Gold Finance disbursements were up 26% to ₹1,928 Crore, with the book reaching ₹3,829 Crore (up 182% YoY).
Outlook and Future Focus
Looking ahead, L&T Finance remains committed to disciplined execution and responsible growth. The company expects operating leverage to play a crucial role in improving profitability, supported by technological investments and a focus on lower credit costs. The ‘Lakshya 2031’ strategy is geared towards significant expansion and enhanced shareholder value.
Source: BSE
