L&T Finance Ltd Q2 FY27 Results (NSE: LTF)
Signal: Earnings grew
The read
The trajectory strengthened in Q2FY27: consolidated total income growth accelerated to +26.5% YoY from +23.1% reported for Q1FY27, while PAT growth reached +32.4% and remained ahead of income growth; finance costs were flat QoQ at ₹1,970.47 Cr, but impairment rose 7.9% QoQ to ₹628.69 Cr and should remain the key credit-cost monitor as loans reached ₹1,32,173.76 Cr.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,484.23 Cr | +26.5% | +4.6% |
| Net profit | ₹972.76 Cr | +32.4% | |
| EPS | ₹3.89 | +32.3% | |
| EBIT margin | 0% |
P&L walk
Consolidated total income reached ₹5,484.23 Cr, +26.5% YoY and +4.6% QoQ; finance costs rose 20.6% YoY, impairment 24.4% and employee costs 24.2%, yet PBT grew 33.4% and PAT 32.4% to ₹972.76 Cr.
Key positives
- Total income reached ₹5,484.23 Cr, up 26.5% YoY and 4.6% QoQ, accelerating from the 23.1% YoY growth cited for Q1FY27.
- PAT of ₹972.76 Cr grew 32.4% YoY versus total-income growth of 26.5%, with PBT up 33.4% to ₹1,318.84 Cr.
- Finance costs were broadly flat QoQ at ₹1,970.47 Cr while total income grew 4.6% QoQ, supporting sequential profit expansion.
- Loans increased to ₹1,32,173.76 Cr from ₹1,17,821.03 Cr at March 31, 2026, indicating continued balance-sheet scaling.
Key concerns
- Impairment on financial instruments rose 24.4% YoY and 7.9% QoQ to ₹628.69 Cr, requiring monitoring as the loan book expands.
- H1 operating cash flow fell 57.1% YoY to ₹2,375.87 Cr despite H1 PAT of ₹1,888.75 Cr, indicating weaker cash conversion.
- Debt-equity stood at 4.21x and total debts to total assets at 0.78x, leaving funding costs and asset quality central to the earnings trajectory.
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