L&T Finance Ltd

Q1 FY27Finance

L&T Finance Q1 FY27 earnings call: Revenue & Margins

Q1 FY27 earnings call: what management guided on revenue, margins and order book.

Price₹310

Market cap₹78.4K Cr

P/E24.5

Updated23 Sept 2026

Read5 min read

What the Q1 FY27 call signalled

1 of 3 strong

RevenueModerate growth

MarginMargins steady

CapexCapex planned

The short version

Strong disbursement momentum across all lines of business, including 126% YoY growth in Personal Loans and 41% growth in Two Wheeler finance. L&T Finance aims for a sustainable growth trajectory with a targeted consolidated book CAGR of over 20% through Lakshya 2031, having already achieved 27% growth in Q1FY27.

From L&T Finance Ltd's Q1 FY27 earnings-call transcript · updated 23 Sept 2026.

Revenue & Sales Performance

Moderate growth

Strong disbursement momentum across all lines of business, including 126% YoY growth in Personal Loans and 41% growth in Two Wheeler finance.
Expansion plans include adding ~500 new Gold Finance branches in FY27, accelerating branch additions (~1.4 branches/day).
Continued growth in Rural Business Finance, SME Finance, Farmer Finance, Home Loans/LAP, and Gold Finance segments.
Expected revenue growth from new geographical expansions (Rajasthan, Punjab, Haryana, MP, Gujarat, Maharashtra, Odisha) with coverage under CGFMU schemes.
Resumption of Microfinance growth within MFIN guardrails after collection efficiencies normalize.
Launch and scaling of AI-powered credit administration (Project Cyclops, Nostradamus) to improve underwriting and portfolio quality.
Growing focus on prime customer segments in urban portfolios to ensure resilient quality growth.

2 more points management made on revenue & sales performance

Profitability & Margins

L&T Finance aims for a sustainable growth trajectory with a targeted consolidated book CAGR of over 20% through Lakshya 2031, having already achieved 27% growth in Q1FY27.
Profitability is expected to improve steadily, with Q1FY27 recording the highest ever quarterly PAT of ₹902 Cr, up 29% YoY, and RoA improving by 11 bps YoY to 2.48%.
Credit cost is targeted to structurally decline to 2% or less over the Lakshya period, enhancing profitability.
The company expects RoA to improve by approximately 60-80 bps on a pre-tax basis during the strategy period, driven by improvements in credit cost, credit-related costs, and operational efficiencies.
Fee income and NIMs combined are expected to remain stable (~10.47%), supporting operating earnings despite competitive pressures.

2 more points management made on profitability & margins

See what L&T Finance Ltd said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Capex planned

The company has invested significantly in technology, with around ₹102 Cr spent on projects like Cyclops, Nostradamus, and other AI-powered tools, including capital work in progress for ongoing projects.
Around ₹38 Cr was spent to build Cyclops, ₹33 Cr on Nostradamus, and ₹37 Cr on Cyclops (possible reference to different phases or components).
They are investing in building a private cloud to manage large AI usage costs and operational efficiency, aiming to run tier-two and tier-three applications on it after reliability testing.
New AI initiatives include AI co-pilots like Project Helios, Orion, ShigraM, Argus, and Canyon to embed AI into underwriting, portfolio management, legal processes, fraud screening, and loan origination.

2 more points management made on capital expenditure plans

Top-ranked in Finance

Ranked on what management guided this quarter

5x potential

1Mufin Green Finance Ltd₹2.6K Cr

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2Akiko₹454 Cr

Rev 1Mar 1

3₹972 Cr

Rev 1Mar 2

4₹358 Cr

Rev 1Mar 2

5₹1.5L Cr

Rev 1Mar 3

Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.

Fundraising & Capital Structure

No immediate plans for international fund mobilization currently; diversification through international borrowing is possible if the situation becomes favorable.
The company is managing liquidity proactively, with surplus liquidity kept around ₹9,000 Cr, which may be adjusted depending on external conditions.
There is an expectation that the weighted average cost of borrowing (WACB) for FY27 may increase slightly by 4 to 5 basis points, moving from 7.35% to about 7.35%-7.40%.
The company continues to borrow through various instruments including Priority Sector Lending (PSL) and domestic financial institutions.

2 more points management made on fundraising & capital structure

See what L&T Finance Ltd said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

The provided transcript from the Q1FY2026-27 financial performance and strategy update of L&T Finance Limited does not explicitly mention current or expected orderbook or pending orders. The document focuses mainly on financial performance metrics, business segment growth, cost of funds, NIM guidance, AI investments, credit cost outlook, and operational strategies across various lending verticals such as Personal Loans, Two Wheelers, Gold Finance, SME Finance, and Rural Finance. Therefore, no specific details on current or expected orderbook or pending orders are available in the shared pages of the transcript. If you need information on orderbook or pending orders, please provide relevant sections or documents that discuss order inflows or backlog status.

What L&T Finance Ltd's management said in earlier quarters

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Frequently Asked Questions

What were L&T Finance Ltd Q1 FY27 results?

What is L&T Finance Ltd share price analysis?

L&T Finance Ltd currently shows a below-average growth signal. The stock trades at a P/E of 24.5 with a market cap of ₹78,399 Cr. Investors should review the full earnings analysis for detailed insights.

Is L&T Finance Ltd planning capital expenditure?

The company has invested significantly in technology, with around ₹102 Cr spent on projects like Cyclops, Nostradamus, and other AI-powered tools, including capital work in progress for ongoing projects.

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.