LFL&T Finance533519Earnings call transcript

Q2FY27 call: highest-ever profit of ₹975 Cr, credit cost guidance reiterated

L&T Finance has shared the transcript of its Q2FY2026-27 earnings call held on October 16, 2026.

By ScoutQuest · Mon 26 Oct 2026, 7:35 PM IST · 2 min read

Consolidated PAT

₹975 Cr, a growth of 33% YoY, described as the highest-ever

Consolidated book

₹1,36,635 Cr

Retail disbursements

₹24,027 Cr during the quarter

Q2 FY27 earnings call transcript — the key outcomes

Profit, book and disbursements

• Consolidated profit after tax came in at ₹975 Cr, a growth of 33% YoY, which management described as the highest-ever.
• The consolidated book stood at ₹1,36,635 Cr.
• Retail disbursements for the quarter were ₹24,027 Cr, with contributions from all lines of business.
• Return on assets improved to 2.60%.

Credit quality

• Credit cost moderated to 2.46% for the quarter, which management linked to collections and AI-led portfolio management, including its in-house framework called Project Cyclops.
• Management said rural disbursement momentum was consciously moderated and risk guardrails were raised because of uncertainty over the monsoon; with more clarity now available, it said it will carefully increase risk-calibrated rural disbursement momentum.

Guidance given on the call

• Management said it is confident of achieving the guided credit cost corridor of 2%-2.2% by Q4FY27.
• It remains hopeful that the return on assets trajectory will reach the guided objective of a 2.8% - 3% exit by Q4FY27.

Insurance commission consultation paper

• IRDAI has issued a draft consultation paper proposing to rationalise commission payouts across the board, with significant cuts in credit-linked insurance and motor insurance, and lower commission thresholds on standalone insurance products to a lesser extent.
• Management said it would be premature to quantify the final impact because the framework is still a draft consultation paper.
• The company said its industry body FIDC is engaging with the regulator, along with other financial industry bodies, seeking a realistic assessment of the distribution costs borne by banks and NBFCs and a glide path for commission optimisation.

Macro backdrop management described

• A volatile global environment, re-escalation of conflict in West Asia and sharp swings in crude oil prices.
• A below-normal 2026 southwest monsoon with regional variation; kharif sowing was reported at par with previous years, and rural cash flows in some geographies are being watched closely.
• India's domestic demand and credit demand were described as resilient.

What a retail investor may want to track

• Delivery on the Q4FY27 credit cost and return on assets targets.
• The pace at which rural disbursements are scaled back up.
• The final shape of the insurance commission rules, which management said it cannot yet quantify.

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