L&T Finance Limited Earnings Summary — Q4 FY2026
L&T Finance Hits Record Quarterly Profit Amid Successful Retail Pivot
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 6 consecutive quarters.
- Revenue of ₹5,213 Cr is 22.4% higher year-on-year.
- Revenue has compounded at 16.9% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹902 Cr is 28.7% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 24.2% annualised across the period.
- Operating margin stands at 62.1% in Q1 FY2027.
- Operating margin expanded by 63 bps year-on-year.
- Over the last two years operating margin has expanded by 130 bps.
- PBT margin is 23.7%.
- Expense growth of 20.4% remained below revenue growth of 22.4%.
- Operating profit of ₹3,239 Cr is 23.6% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 84/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 5,213 | 4,771 | 4,578 | 4,336 | 4,260 | 4,023 | 4,098 | 4,019 | 3,784 | 3,670 |
| Expenses | Stable | 1,974 | 1,890 | 1,800 | 1,662 | 1,640 | 1,581 | 1,676 | 1,575 | 1,482 | 1,619 |
| Operating Profit | Improving | 3,239 | 2,881 | 2,778 | 2,674 | 2,620 | 2,442 | 2,422 | 2,444 | 2,302 | 2,051 |
| Operating Margin | Stable | 62.1% | 60.4% | 60.7% | 61.7% | 61.5% | 60.7% | 59.1% | 60.8% | 60.8% | 55.9% |
| Other Income | Volatile | 30 | 0 | -25 | 0 | 0 | 4 | 8 | 5 | 0 | 6 |
| Interest | Improving | 1,970 | 1,747 | 1,703 | 1,634 | 1,636 | 1,600 | 1,569 | 1,476 | 1,351 | 1,335 |
| Depreciation | Improving | 63 | 60 | 58 | 51 | 41 | 41 | 36 | 33 | 28 | 28 |
| Profit Before Tax | Improving | 1,236 | 1,074 | 992 | 989 | 943 | 806 | 824 | 940 | 922 | 694 |
| Tax | Strong Uptrend | 320 | 265 | 254 | 254 | 242 | 170 | 198 | 243 | 237 | 141 |
| Net Profit | Improving | 902 | 807 | 739 | 735 | 701 | 636 | 626 | 696 | 686 | 554 |
| Net Margin | Stable | 17.3% | 16.9% | 16.1% | 16.9% | 16.5% | 15.8% | 15.3% | 17.3% | 18.1% | 15.1% |
Key Takeaways
- Achieved record quarterly net profit of Rs. 809 crore, representing a 27% YoY increase.
- Successfully transitioned to a retail-heavy model with retailisation exceeding 90% of the book.
- Financing margin improved to 24%, reflecting a shift toward higher-yielding retail assets.
- Borrowings increased significantly to Rs. 1,10,298 crore to support book growth.
- Consolidated revenue grew by 18.6% YoY, showing accelerating top-line momentum.
- Profitability growth (TTM 14%) remains healthy despite competitive pressures in the NBFC space.
Management Guidance
Management is focused on the 'Lakshya' transformation strategy, aiming for a data-tech driven retail model to lower credit costs and enhance operational efficiency.
Sentiment Shift
Improving
The consistent expansion of financing margins and steady profit growth indicate that the structural pivot from wholesale to retail is yielding tangible results.
Outlook
The outlook is positive as the company finishes its wholesale de-risking; however, achieving top-tier ROE levels remains the primary long-term execution challenge.
From the Annual Report (Key Quotes)
“L&T Finance is currently executing a strategic pivot from wholesale to retail lending under its 'Lakshya' goals.”
“The company manages an AUM focused on Urban Finance and Rural Finance, achieving a retailisation mark of over 90%.”
“Communication is transparent, with frequent analyst meets and detailed quarterly presentations.”
Official Quarterly Documents
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This summary is AI-generated from L&T Finance Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.