L&T Finance Q2FY27 Profit Jumps 33% to ₹975 Crore as Retail Book Expands 29%

L&T Finance Ltd. (LTF) reported a consolidated Profit After Tax (PAT) of Rs. 975 Crore for the second quarter ended September 30, 2026 (Q2FY27), marking a 33% year-on-year (YoY) increase. The company also recorded its highest-ever consolidated book of Rs. 1,36,635 Crore, up 28% YoY, as growth across retail lending businesses and increased technology deployment supported its performance.
LTF’s retail book reached Rs. 1,34,600 Crore during the quarter, registering 29% growth compared with the corresponding quarter of the previous financial year. Retail disbursements rose 27% YoY to Rs. 24,027 Crore from Rs. 18,883 Crore in Q2FY26, reflecting continued business momentum. Improving asset quality, lower credit costs and higher Return on Assets reinforced the company’s focus on profitable, risk-calibrated growth. At the same time, LTF accelerated technology deployment as it progressed towards becoming an AI-native lender.
The company continues to advance its Lakshya 2031 ambition of becoming a risk-first, technology-first and AI-native retail financial services institution. Its strategy involves embedding intelligence across customer acquisition, underwriting, portfolio management, servicing and cross-selling.
During Q2FY27, LTF’s flagship PLANET app strengthened its position as a key digital platform, surpassing 2.7 crore downloads. The application now handles 94% of the total service requests generated by customers. During the quarter, it facilitated collections of Rs. 2,168 Crore and generated business of Rs. 5,934 Crore.
To strengthen its rural reach, the company introduced a dedicated rural interface on the PLANET app, featuring a clear, intuitive and clutter-free user interface with multilingual capabilities, including Hindi. The interface is designed to help rural customers navigate the application more easily, access services in a familiar language and complete transactions with greater convenience and confidence.
LTF also strengthened its digital engagement with dealers through the Partner PLANET app. The dedicated platform brings key business information, retail performance insights and operational services together on a single interface. Dealers can access business metrics, monitor retail performance, manage Trade Advance requirements and track operational requests through the application, improving transparency, convenience and efficiency across the dealer ecosystem.
Commenting on the financial results, Mr. Sudipta Roy, Managing Director & CEO, LTF, said Q2FY27 was another strong quarter for the company, with solid delivery across business parameters and sustained momentum supporting its Lakshya 2031 journey.
He said the results reflected the strength of LTF’s diversified retail franchise, disciplined execution and continued focus on sustainable, risk-calibrated growth. Despite uncertainties in the macroeconomic environment, inflation pressures and seasonal headwinds, the company’s business model enabled it to navigate these challenges while expanding key focus verticals, including Gold Finance, Micro Loan Against Property, Personal Loans and Two-Wheeler Finance.
Roy said the company would continue to follow disciplined underwriting, strengthen risk guardrails, maintain granular portfolio monitoring and reinforce its collections framework. He emphasised that responsible growth must go hand in hand with superior portfolio quality.
As LTF progresses towards its Lakshya 2031 objectives, it remains focused on strengthening granular distribution channels, expanding its branch footprint and enhancing digital acquisition capabilities. Roy said investments in artificial intelligence, particularly through AI-powered credit administration and portfolio management frameworks, are expected to improve credit decision-making, identify early warning signals and increase operational efficiency. These capabilities are intended to help the company build a more agile, scalable and resilient organisation.
He added that the company’s priorities remain sustaining profitable growth, improving returns and strengthening the quality of its franchise. LTF is confident that its investments in technology, distribution and risk management will help it navigate evolving market conditions while progressing towards its long-term strategic ambitions.
The company’s retail business recorded growth across multiple lending segments in both rural and urban markets, with a focus on high-yielding loan products. The retail book increased to Rs. 1,34,600 Crore in Q2FY27 from Rs. 1,04,607 Crore in Q2FY26, representing 29% YoY growth. Retail disbursements rose to Rs. 24,027 Crore from Rs. 18,883 Crore, an increase of 27%.
Rural Business Finance recorded a 22% YoY increase in its book size to Rs. 33,465 Crore, compared with Rs. 27,460 Crore in Q2FY26. Quarterly disbursements for the quarter ended September 30, 2026, stood at Rs. 6,356 Crore, compared with Rs. 6,316 Crore in the corresponding period a year earlier, representing 1% growth.
Farmer Finance reported a book size of Rs. 17,397 Crore, up 9% from Rs. 15,943 Crore in Q2FY26. Quarterly disbursements stood at Rs. 1,643 Crore, compared with Rs. 1,654 Crore in the year-ago quarter, marking a 1% decline.
Two-wheeler Finance recorded 24% YoY growth in its book size to Rs. 16,158 Crore from Rs. 13,013 Crore in Q2FY26. Quarterly disbursements increased 26% to Rs. 3,170 Crore from Rs. 2,512 Crore.
Personal Loans emerged as one of the company's faster-growing lending segments. The book size increased 72% YoY to Rs. 18,664 Crore from Rs. 10,878 Crore in Q2FY26. Quarterly disbursements rose 45% to Rs. 4,233 Crore from Rs. 2,918 Crore. During the quarter, LTF partnered with Pine Labs to introduce Agentic Commerce and Payments on the L&T Finance PLANET app.
Housing Loans and Loan Against Property (LAP) recorded a 20% YoY increase in book size to Rs. 32,846 Crore from Rs. 27,407 Crore in Q2FY26. Quarterly disbursements grew 8% to Rs. 2,926 Crore from Rs. 2,713 Crore.
SME Finance reported 27% YoY growth in book size to Rs. 9,495 Crore, compared with Rs. 7,465 Crore in Q2FY26. Quarterly disbursements increased 24% to Rs. 1,820 Crore from Rs. 1,468 Crore.
Gold Finance recorded the strongest growth among the highlighted lending segments. Its book size surged 242% YoY to Rs. 5,043 Crore from Rs. 1,475 Crore in Q2FY26. Quarterly disbursements increased 229% to Rs. 3,237 Crore from Rs. 983 Crore.
To support its Gold Finance business, LTF launched an integrated marketing campaign featuring brand ambassador Jasprit Bumrah under the tagline “Koi Bhi Sapna Hold Mat Karo, L&T Finance Gold Loan Karo.” The campaign covered key markets across eight states and one union territory, reaching consumers through approximately 150 LTF branches.
L&T Finance Ltd. (LTF), headquartered in Mumbai, is a non-banking financial company offering a range of financial products and services through its website, www.LTFINANCE.com. The company has received an ‘AAA’ rating, the highest credit rating, from four leading domestic rating agencies and is also rated by international rating agencies.
S&P Global Ratings has affirmed LTF’s long-term Issuer Credit Rating at “BBB/Stable” and short-term issuer credit rating at “A-2”. Fitch Ratings has affirmed the company’s Long-Term Foreign and Local-Currency Issuer Default Ratings at “BBB-” with a Stable outlook.
LTF has also received leadership scores and ratings from global and national Environmental, Social, and Governance (ESG) rating providers for its sustainability performance. The company has been certified as a Great Place To Work® and has received several prestigious awards for its flagship corporate social responsibility project, “Digital Sakhi,” which focuses on women’s empowerment and digital and financial inclusion.
Under its Right to Win strategy, LTF’s presence in the ‘right businesses’ has helped it become one of the leading financiers in key retail products. As part of its Lakshya 2031 plan, the company is focused on transforming into a risk-first, technology-first and AI-native retail financial services institution. It has a customer database of over 3 Crore, which it leverages for cross-selling, up-selling and identifying new customers.