L&T Finance
L&T Finance
Financial Services F&OKey Fundamentals
MidcapInvestment CompanyFinancial ServicesPrice-based figures as of 9 Oct 2026, 3:59 pm IST · EPS basis: Consolidated · TTM
Tapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
2- Company has delivered good profit growth of 32.4% CAGR over last 5 years
- Company has been maintaining a healthy dividend payout of 25.3%
Weaknesses
4- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of 6.05% over past five years.
- Company has a low return on equity of 10.8% over last 3 years.
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
As of the 2026-10-01 close, L&T Finance Ltd traded at ₹264.35, giving it a market capitalisation of ₹66,255.43 crore. That price is 20.8x trailing EPS of ₹12.71 and 2.37x book value, against an ROE of 10.64%. Profit grew 20% over the trailing twelve months and at a 32% CAGR over five years, while sales grew at only a 6% CAGR over five years. The stock is about 22% below its 52-week high of ₹338.6, and its 1-year return was 1%, compared with a 3-year CAGR of 26%.
- Profit has compounded at 32% CAGR over 5 years and 20% over the trailing twelve months. That shows earnings growth has held up beyond the initial recovery off a low base.
- Sales grew 15% over the TTM, well above the 5-year CAGR of 6% and the 3-year CAGR of 12%. This suggests the loan book and revenue growth have picked up in recent periods.
- ROE has improved from a 5-year average of 8% and a 10-year average of 9% to about 11% last year (10.64% currently). Return ratios have been trending gradually upward.
- Profit grew 20% TTM, faster than sales at 15% TTM. That points to margin or credit-cost improvement adding to earnings rather than balance-sheet growth alone.
- At ₹264.35 as of 2026-10-01, the stock is about 22% below its 52-week high of ₹338.6. The 1-year return of 1% lags the 3-year CAGR of 26%, so the valuation has de-rated relative to recent history.
- The company keeps a dividend payout of 25.3%, which gives a dividend yield of 1.04% while still retaining most earnings to fund growth.
- Long-term shareholder returns are solid: the stock CAGR is 24% over 5 years and 12% over 10 years.
- ROE of 10.64% and an average of about 10.8% over 3 years are modest for a lender trading at 2.37x book value. At this ROE, the P/B multiple implies the market expects returns to improve meaningfully.
- A P/E of 20.8x on EPS of ₹12.71 implies an earnings yield of about 4.8%. That leaves limited room for error if credit costs rise or growth slows.
- Sales grew at only a 6.05% CAGR over 5 years and 9% over 10 years. This is weak long-run topline compounding, and the recent 15% TTM growth has a short track record.
- The 256% 3-year profit CAGR comes largely from a depressed base. It overstates the underlying earnings trend, which is closer to 13% over 10 years.
- Return on capital is thin: ROCE is 10.11%, and ROE averaged 8% over 5 years and 9% over 10 years. That reflects a history of below-par profitability through credit cycles.
- Interest coverage is low and leverage is structurally high. Debt-to-equity is not reported in the dataset, but as an NBFC the company depends on wholesale borrowing, so funding costs and liquidity conditions directly affect its margins.
- A data flag says the company may be capitalising interest cost, which could affect how reported profitability compares with peers. For a lender this flag may be a classification artefact, but it is an accounting item worth checking.
- The stock returned only 1% over 1 year and sits about 12.5% above its 52-week low of ₹234.9. Momentum has stalled compared with the 26% 3-year CAGR.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Weakest monsoon in 17 years Sep 20
IMD calls this year's monsoon the weakest in 17 years, and states such as Andhra Pradesh and Bihar show rainfall deficits of up to 42%. That could pressure LTF's rural business finance and micro-LAP collections over the next two quarters.
- Credit costs above sub-2% target Sep 20
Credit costs stand at 2.54%, still above the sub-2% target for the Lakshya period. Investors will watch whether high retail book growth can coexist with lower credit costs.
- Rich valuation premium Sep 20
LTF trades at 2.8x P/B against its historical median of 1.6x, while peer MMFS trades near its 1.8x median. Little room is left for execution slips.
- Rural and microfinance stress lingers Oct 5
Industry microfinance books shrank from ₹4.40 lakh crore to ₹3.30 lakh crore amid the Karnataka ordinance and new MFIN guardrails. LTF slowed disbursements for 4-5 quarters and turned down ₹1,000-1,200 crore of loans, and Farmer Finance grew only 11% YoY.
- Yield and opex trade-offs Oct 5
The shift toward prime customers and secured products like Home Loans and LAP may compress yields, and retail expansion raises branch, collections and tech costs. RoE expansion may be gradual despite retail RoA targets of 3-3.2%.
- Farmer Finance external disruptions Oct 5
Farmer Finance faced a delayed monsoon, uncertainty ahead of GST rate cuts, and fertilizer supply disruptions linked to the West Asia crisis.
- Q2FY27 disbursements up 27% Oct 3
Estimated retail disbursements for Q2FY27 were ₹24,000 crore, up 27% YoY. The retail loan book grew 29% to ₹1,34,500 crore.
- Record Q1 profit of ₹902 crore Sep 20
Q1FY27 net profit hit an all-time high of ₹902 crore, up 29% YoY, and NII grew 31% to ₹2,684 crore. Consolidated GS3 improved to 2.86% from 3.29% in Q4FY25.
- Retailisation reaches 99% Oct 5
Retail now makes up 99% of the loan book, up from 98%, with no new wholesale disbursements. Q1FY27 retail disbursements rose 36% YoY to ₹23,852 crore, and Urban Finance grew 57% to ₹10,787 crore.
- Gold and personal loans surge Oct 5
Gold loan disbursements tripled to ₹3,230 crore, the gold book grew 182% to ₹3,829 crore, and the branch count reached 343. Personal loan disbursements rose 126% to a record ₹4,380 crore.
- AI underwriting improves quality Oct 5
After four months of Project Cyclops, two-wheeler net non-starters fell 120 bps versus non-Cyclops portfolios, and the prime borrower share rose from 52% to 90%. The platform is due to extend to Rural Business Finance by the end of FY27.
- Strong capital and stable funding Oct 5
CAR is 17.89% (Tier I 17.14%) and leverage is 3.97x against a 5x target, backed by a ₹9,000 crore liquidity buffer. Cost of borrowing was 7.20% in Q1FY27, with FY27 guided at 7.35-7.40%.
- ESG 'Leader' rating Sep 18
Niche Ninety Nine gave LTF an ESG score of 79.15, placing it in the 'Leader' category. The rating was disclosed to exchanges on Sep 18, 2026.
- Lakshya 2031 growth to moderate Oct 5
Management says the current 27% growth partly reflects a low base and will moderate toward the Lakshya 2031 target of 20%+ CAGR. It plans to move about ₹7,000 crore into retail over 3-4 years.
- NCD fundraises completed Sep 29
LTF allotted ₹650 crore of senior secured NCDs at 7.8384% due Sep 2029 (Sep 18) and ₹52 crore of subordinated NCDs at 8.20% due 2036 (Sep 29).
- Large block trades flagged Sep 30
Real-time scanners flagged about 8.09 lakh shares (₹23.03 crore) at ₹284.75 on NSE on Sep 24 and about 15 lakh shares (₹40.17 crore) at ₹267.80 on BSE on Sep 30. Neither is exchange-confirmed, and the price was about 6% lower between the two trades.
- Whole-Time Directors approved Oct 6
Four resolutions passed by postal ballot on Oct 6, 2026, including the appointment of Sachinn Joshi and Raju Dodti as Whole-Time Directors.
- Investor and analyst meets Sep 18
Institutional meetings with JP Morgan and Nuvama were held in Mumbai on Sep 21 and 28, and LTF joined the Citi India Financials Investor Forum on Sep 25, 2026. The company said no unpublished price-sensitive information would be shared.
TL;DR: LTF is executing well: Q1FY27 profit hit a record ₹902 crore (+29%), Q2 disbursements rose 27% to about ₹24,000 crore, the book is 99% retail, and AI-led underwriting is cutting slippages. Asset quality is improving, with GS3 at 2.86%, and capital is strong at 17.89% CAR with 3.97x leverage. The main risks are credit costs of 2.54% (above the sub-2% target), the weakest monsoon in 17 years hitting rural and farmer segments, a 2.8x P/B premium over the 1.6x historical median, and some recent softness in the share price. The trend is improving, but the next two quarters will test whether rural collections hold up through the monsoon shortfall and whether credit costs keep falling enough to support the valuation.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 3,223 | 3,214 | 3,534 | 3,670 | 3,784 | 4,019 | 4,098 | 4,023 | 4,260 | 4,336 | 4,578 | 4,771 | 5,213 |
| Expenses | 1,270 | 1,331 | 1,375 | 1,619 | 1,482 | 1,575 | 1,676 | 1,581 | 1,640 | 1,662 | 1,800 | 1,890 | 1,974 |
| Financing Profit | 590 | 557 | 806 | 716 | 950 | 968 | 853 | 842 | 984 | 1,040 | 1,075 | 1,134 | 1,269 |
| Fin. Margin % | 18% | 17% | 23% | 20% | 25% | 24% | 21% | 21% | 23% | 24% | 23% | 24% | 24% |
| Other Income | 153 | 268 | 47 | 6 | 0 | 5 | 8 | 4 | 0 | 0 | -25 | 0 | 30 |
| Interest | 1,364 | 1,325 | 1,353 | 1,335 | 1,351 | 1,476 | 1,569 | 1,600 | 1,636 | 1,634 | 1,703 | 1,747 | 1,970 |
| Depreciation | 30 | 28 | 29 | 28 | 28 | 33 | 36 | 41 | 41 | 51 | 58 | 60 | 63 |
| PBT | 714 | 797 | 824 | 694 | 922 | 940 | 824 | 806 | 943 | 989 | 992 | 1,074 | 1,236 |
| Tax % | 26% | 25% | 22% | 20% | 26% | 26% | 24% | 21% | 26% | 26% | 26% | 25% | 26% |
| Net Profit | 531 | 594 | 639 | 553 | 685 | 697 | 626 | 636 | 701 | 735 | 738 | 809 | 916 |
| EPS in Rs | 2.14 | 2.4 | 2.57 | 2.23 | 2.75 | 2.79 | 2.51 | 2.55 | 2.81 | 2.94 | 2.95 | 3.22 | 3.6 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 6,456 | 7,440 | 8,532 | 10,215 | 13,365 | 14,104 | 13,353 | 11,930 | 12,775 | 14,252 | 15,924 | 17,914 | 18,898 |
| Expenses | 1,625 | 1,979 | 2,776 | 3,308 | 3,377 | 4,160 | 5,401 | 5,233 | 7,935 | 6,195 | 6,304 | 6,946 | 7,326 |
| Financing Profit | 1,254 | 1,328 | 1,120 | 1,449 | 3,105 | 2,392 | 722 | 932 | -972 | 2,670 | 3,614 | 4,234 | 4,518 |
| Fin. Margin % | 19% | 18% | 13% | 14% | 23% | 17% | 5% | 8% | -8% | 19% | 23% | 24% | 24% |
| Other Income | 16 | 8 | 26 | 49 | -4 | 370 | 836 | 594 | 2,792 | 474 | 16 | -26 | 5 |
| Interest | 3,577 | 4,133 | 4,635 | 5,458 | 6,882 | 7,552 | 7,230 | 5,765 | 5,812 | 5,387 | 6,007 | 6,734 | 7,054 |
| Depreciation | 96 | 83 | 67 | 52 | 50 | 82 | 86 | 103 | 111 | 115 | 139 | 210 | 232 |
| PBT | 1,175 | 1,253 | 1,079 | 1,446 | 3,052 | 2,680 | 1,472 | 1,423 | 1,709 | 3,029 | 3,491 | 3,998 | 4,291 |
| Tax % | 28% | 32% | 3% | 12% | 27% | 37% | 36% | 26% | 10% | 24% | 24% | 25% | — |
| Net Profit | 855 | 857 | 1,048 | 1,278 | 2,232 | 1,700 | 949 | 1,049 | 1,536 | 2,317 | 2,643 | 2,983 | 3,198 |
| EPS in Rs | 4.04 | 3.97 | 4.83 | 5.11 | 9.06 | 6.9 | 3.93 | 4.33 | 6.55 | 9.32 | 10.6 | 11.9 | 12.71 |
| Div. Payout % | 16% | 16% | 13% | 16% | 9% | 11% | 0% | 12% | 31% | 27% | 26% | 23% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 1,720 | 1,753 | 1,756 | 1,996 | 1,999 | 2,005 | 2,469 | 2,474 | 2,480 | 2,489 | 2,495 | 2,504 |
| Reserves | 4,656 | 5,442 | 6,138 | 9,411 | 11,450 | 12,688 | 16,304 | 17,474 | 19,049 | 20,950 | 23,069 | 25,479 |
| Borrowing | 43,454 | 52,829 | 61,024 | 75,248 | 91,507 | 93,934 | 88,592 | 85,237 | 83,105 | 76,603 | 92,372 | 1,10,298 |
| Other Liabilities | 2,912 | 3,775 | 3,593 | 1,117 | 1,094 | 902 | 1,582 | 1,696 | 1,706 | 2,652 | 2,447 | 3,903 |
| Total Liabilities | 52,742 | 63,799 | 72,511 | 87,772 | 1,06,050 | 1,09,529 | 1,08,947 | 1,06,880 | 1,06,339 | 1,02,694 | 1,20,384 | 1,42,184 |
| Fixed Assets | 1,184 | 1,313 | 1,230 | 1,151 | 1,127 | 1,100 | 1,138 | 509 | 553 | 519 | 641 | 1,308 |
| CWIP | 174 | 22 | 28 | 19 | 39 | 62 | 24 | 22 | 5 | 36 | 45 | 62 |
| Investments | 2,649 | 3,563 | 6,012 | 5,301 | 8,641 | 5,979 | 8,872 | 11,917 | 14,366 | 12,385 | 11,876 | 10,564 |
| Other Assets | 48,736 | 58,901 | 65,242 | 81,301 | 96,243 | 1,02,387 | 98,912 | 94,433 | 91,415 | 89,754 | 1,07,822 | 1,30,250 |
| Total Assets | 52,742 | 63,799 | 72,511 | 87,772 | 1,06,050 | 1,09,529 | 1,08,947 | 1,06,880 | 1,06,339 | 1,02,694 | 1,20,384 | 1,42,184 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | -6,474 | -9,213 | -5,779 | -15,640 | -11,643 | 2,162 | 5,464 | 6,078 | 7,490 | 686 | -16,587 | -14,189 |
| Investing | 2 | -675 | -2,118 | 1,549 | -3,587 | 160 | -2,025 | -5,087 | -1,634 | 849 | 472 | 367 |
| Financing | 6,552 | 9,426 | 7,952 | 14,678 | 16,008 | 1,451 | -2,091 | -3,023 | -1,664 | -7,050 | 15,419 | 15,415 |
| Net Cash Flow | 81 | -461 | 55 | 587 | 777 | 3,772 | 1,349 | -2,032 | 4,193 | -5,515 | -697 | 1,593 |
| Free Cash Flow | -6,572 | -9,292 | -5,781 | -15,614 | -11,723 | 2,108 | 5,415 | 6,001 | 7,394 | 568 | -16,777 | -14,427 |
| CFO/OP | -125 | -158 | -91 | -217 | -109 | 30 | 72 | 96 | 178 | 102 | -165 | -120 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE % | 13% | 13% | 14% | 13% | 18% | 12% | 4% | 4% | 0% | 10% | 11% | 11% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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59 extracted metrics + investor summaries across FY09–FY27.
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Company Information
L&T Finance Ltd. is a NBFC, offering a range of financial products and services. [1] Company has filed requisite application for necessary registration as Systemically Important Non- Deposit Accepting Core Investment Company (NBFC-CIC)[2]
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