L&T Finance Ltd Q1 FY27 Results (NSE: LTF)
Signal: Earnings grew
The read
L&T Finance delivered a strong Q1FY27 with revenue and PAT at all-time highs, driven by 25% YoY interest income growth and controlled credit costs (+7.4% YoY vs +22.4% revenue growth). Operating margin expanded 120bps YoY to 23.7% as revenue growth outpaced total expense growth. PAT growth of 28.1% YoY was clean, tracking operating profit with no exceptional items. EPS tracked PAT, with minimal dilution. The trajectory shows accelerating growth — Q1FY27 revenue growth of 22.4% YoY is the fastest in the last 5 quarters, and PAT growth of 28.1% YoY is the fastest in 6 quarters.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,212.92 Cr | 22.38% | 9.26% |
| EBIT | ₹1,236.28 Cr | 31.07% | |
| Net profit | ₹915.99 Cr | 28.09% | |
| EPS | ₹3.6 | 28.11% | |
| EBIT margin | 23.71% |
P&L walk
Consolidated revenue grew 22.4% YoY driven by 25% jump in interest income (₹4,895 Cr); finance costs rose 20.4% YoY (₹1,970 Cr) — net interest spread broadly stable; impairment charge grew only 7.4% YoY (₹583 Cr) suggesting stable asset quality; operating profit (PBT before exceptional) surged 31.1% YoY to ₹1,236 Cr, with operating margin expanding 120bps YoY to 23.7%; PAT grew 28.1% YoY to ₹916 Cr, tracking operating profit growth; EPS ₹3.60, +28.1% YoY, in line with PAT growth.
Segments
Single-segment NBFC — no segment table disclosed; group is engaged primarily in financing business.
Key positives
- Revenue grew 22.4% YoY — fastest in 5 quarters — driven by 25% YoY interest income growth.
- PAT grew 28.1% YoY to ₹916 Cr — fastest in 6 quarters.
- Operating margin expanded 120bps YoY to 23.7%, showing operating leverage.
- Impairment charge grew only 7.4% YoY despite 22.4% revenue growth, suggesting improving asset quality.
- EPS of ₹3.60 grew 28.1% YoY, tracking PAT growth with minimal dilution.
Key concerns
- Finance costs rose 20.4% YoY (₹1,970 Cr), outpacing revenue growth in absolute terms, though net interest spread appears stable.
- Depreciation jumped 54% YoY (₹40.69 Cr to ₹62.68 Cr), possibly indicating fresh asset deployment; lack of balance sheet data prevents cross-check.
- QoQ revenue growth decelerated from Q4FY26's 18.6% to Q1FY27's 9.3% in absolute terms.
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