L&T Finance Reports Strong Q1 FY27 Results; Consolidated Net Profit Surges 31% to ₹916 Crore

L&T Finance Limited has announced its unaudited consolidated financial results for the first quarter of the fiscal year 2026-27 ended June 30, 2026. The leading non-banking financial company (NBFC) kicked off the fiscal year with strong momentum, recording healthy double-digit growth in both its operational revenue and bottom-line net profit, supported by expanding credit traction.

Key Financial Highlights

Total Revenue from Operations: ₹5,212.92 crore, up 22.38% vs ₹4,259.57 crore in Q1 FY26.

Profit Before Tax (PBT): ₹1,236.28 crore, up 31.07% vs ₹943.22 crore in Q1 FY26.

Consolidated Net Profit (PAT): ₹915.99 crore, up 30.70% vs ₹700.84 crore in Q1 FY26.

Earnings Per Share (EPS): Basic EPS rose to ₹3.60 (not annualized) from ₹2.81 year-on-year.

Income Architecture and Top-Line Trajectory

During the opening quarter of FY27, L&T Finance crossed the ₹5,000 crore operational milestone, posting a Total Income of ₹5,243.31 crore. This represents a steady sequential expansion of 9.90% over the ₹4,771.10 crore recorded in the consecutive fourth quarter ended March 31, 2026.

The top-line performance was heavily driven by core lending operations, with interest income jumping to ₹4,894.91 crore, compared to ₹3,914.50 crore in the corresponding quarter of the previous fiscal year. Core revenue was further enhanced by strong fee and commission income, which grew 22.80% year-on-year to ₹318.01 crore, reflecting active retail loan originations and cross-selling.

Expense Analysis and Asset Impairment

Aggregate consolidation expenses for the quarter stood at ₹4,007.03 crore, up from ₹3,316.38 crore in Q1 FY26, moving in tandem with business expansion.

Finance Costs: Reflecting the prevailing interest rate environment, financing leverage costs grew to ₹1,970.07 crore from ₹1,635.74 crore year-on-year.

Employee Benefits: Human capital and personnel expenses stood at ₹697.67 crore, up from ₹552.19 lakhs in the year-ago quarter.

Impairment & Credit Provisions: Provisions for asset impairment on financial instruments were kept well under control, rising marginally by just 1.10% sequential to ₹582.64 crore, underscoring resilient risk management framework.

Fair Value and Derecognition: The bank recorded a net loss on fair value changes of ₹53.89 crore alongside a net derecognition loss on financial instruments under amortized cost of ₹133.61 crore.

Maximized Profitability Realization

The company reported an impressive profit before tax of ₹1,236.28 crore, managing a double-digit clear sequential jump over the ₹1,073.92 crore registered in Q4 FY26.

Following a total tax outgo of ₹320.29 crore-which included a current tax expense provision of ₹402.06 crore partially offset by a deferred tax credit of ₹81.77 crore-L&T Finance closed the quarter with a Consolidated Net Profit of ₹915.99 crore. Out of this, ₹902.47 crore was directly attributable to the owners of the company, while non-controlling interest accounted for ₹13.52 crore.

After accounting for minor changes under other comprehensive income (OCI), the total comprehensive income for the period was established at ₹915.04 crore, reflecting a major step up over the ₹670.80 crore reported in the year-ago opening quarter.

Shares of L&T Finance Limited was last trading in BSE at Rs. 321.25 as compared to the previous close of Rs. 321.05. The total number of shares traded during the day was 620471 in over 10176 trades.

The stock hit an intraday high of Rs. 328.80 and intraday low of 319.20. The net turnover during the day was Rs. 200959382.00.

Source : Equity Bulls

Keywords

LandTFinance INE498L01015 Q1FY27 Q1FY2027 ResultUpdate