L&T Finance Ltd Q1 FY27 Results (NSE: LTF)
Signal: Earnings grew
The read
The trajectory is improving: consolidated total-income growth accelerated to 23.1% YoY from 18.6% in Q4FY26, and PAT growth accelerated to 30.7% from the prior-year base, with ₹915.99 crore PAT despite finance costs of ₹1970.07 crore and impairment of ₹582.64 crore; the key quality watch is whether subsidiary contributions and option-related EPS dilution persist.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,243.31 Cr | +23.1% | +9.9% |
| EBIT | ₹3,206.35 Cr | N/A | |
| Net profit | ₹915.99 Cr | +30.7% | |
| EPS | ₹3.6 | +28.1% | |
| EBIT margin | 0% |
P&L walk
Consolidated total income rose to ₹5,243.31 crore, +23.1% YoY and +9.9% QoQ, while PAT increased to ₹915.99 crore, +30.7% YoY and +13.2% QoQ; finance costs grew 20.4% YoY and impairment 7.4%, yet profit growth remained ahead of revenue growth.
Segments
There are no reportable operating segments; subsidiaries lifted consolidated Q1FY27 PAT to ₹915.99 crore versus standalone PAT of ₹895.32 crore, a ₹20.67 crore contribution, including one unreviewed subsidiary reporting ₹29.86 crore PAT on ₹0.05 crore revenue.
Key positives
- Consolidated total income reached ₹5243.31 crore, +23.1% YoY and +9.9% QoQ, accelerating from Q4FY26 growth of 18.6% YoY.
- PAT of ₹915.99 crore grew 30.7% YoY, 7.6 percentage points faster than total income, while impairment grew only 7.4% YoY.
- Net worth was ₹28212.92 crore and the reported debt-equity ratio was 1:4.09, with secured NCD security coverage of 1.06 times.
Key concerns
- Finance costs of ₹1970.07 crore rose 20.4% YoY and 12.8% QoQ, leaving funding-cost sensitivity central to earnings durability.
- Basic EPS rose 28.1% YoY versus PAT growth of 30.7%; the filing records 1120183 equity shares issued on employee option exercise.
- Standalone PAT fell 5.5% QoQ from ₹947.09 crore to ₹895.32 crore even as standalone total income rose 6.6% QoQ.
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