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L&T Finance Limited (LTF)

₹253.85 -3.11% last close, 16 Oct

📊 NSE: LTF 🏢 Finance & Investments 📢 Latest filing: 15 Oct 2026 📝 Analysis written: 14 Dec 2025

Q2 FY27 results

L&T Finance Limited reported Q2 FY27 results on 15 Oct 2026: net interest income ₹3,514 Cr (+46.2% year on year, +8.4% on the previous quarter), and net profit ₹973 Cr (+32.4% year on year).

Q2 FY27 (₹ Cr)	Value	YoY vs Q2 FY26	QoQ
Net interest income	₹3,514	+46.2%	+8.4%
Operating profit	₹1,319	-11.7%	+6.7%
Net profit	₹973	+32.4%	+6.2%
EPS (₹)	3.89	+32.3%	+8.1%

Against its own trend: net profit of ₹973 Cr was +2.6% against the ₹948 Cr its recent growth pointed to (in line). This is a statistical baseline, not an analyst estimate.

Share price since the results: -3.1% (close before the filing to the latest close).

Full quarterly financials → Margins & quality of profit → All Q2 FY27 results → Results calendar →

LTF delivery percentage and open interest

NSE end-of-day data for Fri, 16 Oct 2026

On Fri, 16 Oct 2026, 31.94% of the LTF shares traded on NSE were taken to delivery, against the stock's own 20-session average of 44.09%. The price fell 3.11% on unusually low delivery. It traded 4.1 times its average daily volume. In LTF futures, open interest rose 8.36% while the futures price fell 4.33%: short buildup (new short positions).

31.94%Delivery, 16 Oct

44.09%Own 20-session average

4.1×Volume vs its average

+8.36%Futures open interest

₹253.85NSE close · -3.11%

Delivery in the last 5 sessions: 37.3% · 37.0% · 43.9% · 54.8% · 31.9%

Delivery across the market →Unusual volume today →F&O open interest →

A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed

📢 Recent Corporate Announcements

LTF Reports Q2FY27 PAT of ₹975 Cr, Up 33% YoY; Book Reaches ₹1,36,635 Cr

🟢 POSITIVE ⭐ 7/10

EARNINGS 📅 15 Oct 2026, 08:06 PM

L&T Finance reported its Q2FY27 financial results via an investor presentation, posting a consolidated PAT of ₹975 Cr, up 33% YoY and 8% QoQ. Total loan book expanded 28% YoY to ₹1,36,635 Cr, with quarterly disbursements reaching ₹24,027 Cr (up 27% YoY). Return on Assets (RoA) improved by 19 bps YoY to 2.60%, while Return on Equity (RoE) climbed 223 bps YoY to 13.56%. Under its Lakshya 2031 strategy, credit costs declined to 2.46% (down from 2.98% in Q2FY26), tracking toward its target of under 2%.

Q2FY27 PAT rose 33% YoY and 8% QoQ to ₹975 Cr
Total loan book grew 28% YoY to ₹1,36,635 Cr vs ₹1,07,096 Cr in Q2FY26
Quarterly disbursements grew 27% YoY to ₹24,027 Cr
RoA expanded to 2.60% (up 19 bps YoY) and RoE reached 13.56% (up 223 bps YoY)
Credit cost improved to 2.46% from 2.98% in Q2FY26 (Lakshya 2031 target: <2%)

💡 Track the trajectory of credit costs towards the <2% Lakshya 2031 target and observe whether NIMs+Fees sustain above 10.4% in upcoming quarters amid changing borrowing cost environments.

LTF Q2FY27 PAT Jumps 33% YoY to ₹975 Cr; Retail Book Hits ₹1,34,600 Cr

🟢 POSITIVE ⭐ 7/10

EARNINGS 📅 15 Oct 2026, 07:33 PM

L&T Finance reported its highest-ever consolidated quarterly Profit After Tax (PAT) of ₹975 crore for Q2FY27, up 33% YoY compared to ₹735 crore in Q2FY26. Total consolidated loan book grew 28% YoY to ₹1,36,635 crore, driven by 29% growth in the retail book to ₹1,34,600 crore. Asset quality showed consistent improvement, with Gross Stage 3 declining 54 bps YoY to 2.75% and Net Stage 3 dropping to 0.85%. Weighted average cost of borrowing decreased 25 bps QoQ to 6.95%, helping expand Net Interest Margin (NIM) plus fees to 10.48%.

Consolidated PAT rose 33% YoY to ₹975 crore in Q2FY27
Consolidated book grew 28% YoY to ₹1,36,635 crore, led by ₹24,027 crore in quarterly retail disbursements (+27% YoY)
Gross Stage 3 improved to 2.75% (vs 3.29% YoY) and Net Stage 3 fell to 0.85% (vs 1.00% YoY)
Cost of borrowing reduced by 25 bps QoQ to 6.95%, lifting NIMs + Fees to 10.48% (up 26 bps YoY)
Gold finance book expanded 242% YoY to ₹5,043 crore with 502 active branches

💡 Track whether credit costs remain sustained below 2.5% and monitor disbursement momentum in the unsecured personal loan book, which expanded 72% YoY.

LTF Q2 FY27 Total Income Up 26.5% YoY to Rs 5,484.23 Cr

🟢 POSITIVE ⭐ 6/10

EARNINGS 📅 15 Oct 2026, 07:18 PM

L&T Finance Limited reported its unaudited consolidated results for Q2 FY27 (quarter ended September 30, 2026), posting total income of Rs 5,484.23 Cr compared to Rs 4,335.79 Cr in Q2 FY26, representing a growth of 26.5% YoY. Revenue from operations reached Rs 5,484.16 Cr, driven by interest income of Rs 5,157.83 Cr (up 27.7% YoY from Rs 4,037.41 Cr). On a sequential basis, total income rose 4.6% from Rs 5,243.31 Cr reported in Q1 FY27. For H1 FY27, total revenue from operations stood at Rs 10,697.08 Cr compared to Rs 8,595.32 Cr in H1 FY26.

Q2 FY27 total income grew 26.5% YoY to Rs 5,484.23 Cr versus Rs 4,335.79 Cr in Q2 FY26
Interest income reached Rs 5,157.83 Cr in Q2 FY27, up 27.7% from Rs 4,037.41 Cr in Q2 FY26
Fees and commission income increased 12.9% YoY to Rs 326.33 Cr during the quarter
Total revenue from operations for H1 FY27 reached Rs 10,697.08 Cr versus Rs 8,595.32 Cr in H1 FY26
Company confirmed no deviation in utilization of proceeds from non-convertible securities

💡 Track net interest margins (NIMs), asset quality trends, and credit costs once detailed balance sheet and NPA figures are analyzed during the earnings call.

LTF Raises Rs 800 Cr via 10-Year Subordinated NCDs at 8.57% Coupon

🟡 NEUTRAL ⭐ 5/10

FUNDRAISE 📅 12 Oct 2026, 07:55 PM

L&T Finance Limited has allotted 80,000 subordinated, unsecured, rated, listed, redeemable Non-Convertible Debentures (NCDs) aggregating to Rs 800 crore on a private placement basis. The issue carries a fixed coupon rate of 8.57% p.a. payable annually, with a 10-year tenor maturing on October 10, 2036. The issuance represents approximately 1.2% of the company's current market cap of Rs 65,939 crore and ~2.9% of its net worth. The debentures are proposed to be listed on NSE's Negotiated Trade Reporting Platform under the New Debt Market.

Allotment of 80,000 subordinated unsecured NCDs aggregating to Rs 800 crore
Base issue of Rs 500 crore with oversubscription retained up to Rs 800 crore (out of a max Rs 1,500 crore shelf)
Fixed coupon rate of 8.57% per annum payable annually
Tenor of 3,651 days with maturity date set for October 10, 2036
Default penalty clause specifying an additional 2% p.a. over the coupon rate

💡 Track the impact of Tier-II subordinated debt on LTF's capital adequacy ratios and net interest margins (NIM) in upcoming quarterly earnings.

LTF Shareholders Approve Board Appointments & MOA Alteration via Postal Ballot

🟡 NEUTRAL ⭐ 4/10

MANAGEMENT 📅 06 Oct 2026, 08:10 PM

L&T Finance Limited announced the results of its postal ballot concluded on October 6, 2026, with all four proposed resolutions passed with requisite majorities. Shareholders approved the appointments of Mr. Sachinn Joshi (98.21% in favour) and Mr. Raju Dodti (98.25% in favour) as Whole-Time Directors. Additionally, the appointment of Mr. Prashant Kumar as an Independent Director (99.97% in favour) and an amendment to the objects clause of the Memorandum of Association (100.00% in favour) were approved. Out of a total voting pool of 2,50,63,52,570 shares across 7,51,686 shareholders, voter turnout stood at 86.33%.

Appointment of Mr. Sachinn Joshi as Whole-Time Director approved with 98.21% votes in favour (2,12,49,26,081 votes)
Appointment of Mr. Raju Dodti as Whole-Time Director approved with 98.25% votes in favour (2,12,58,72,253 votes)
Appointment of Mr. Prashant Kumar as Independent Director approved with 99.97% votes in favour
Amendment to the objects clause of the Memorandum of Association approved with ~100.00% votes in favour
Total voter participation stood at 86.33% of outstanding shares (2,16,36,98,720 votes polled out of 2,50,63,52,570 shares)

💡 Track subsequent disclosures regarding the specific operational mandates assigned to the newly approved Whole-Time Directors and forthcoming Q2 FY27 earnings.

Q2FY27 Disbursements Up 27% YoY to ~₹24,000 Cr; Retail Book Hits ~₹1,34,500 Cr

🟢 POSITIVE ⭐ 6/10

ROUTINE 📅 03 Oct 2026, 06:33 PM

L&T Finance reported strong provisional business updates for Q2FY2026-27, with retail disbursements reaching ~₹24,000 crore, representing a 27% YoY increase compared to ₹18,883 crore in Q2FY26. Growth was propelled significantly by Gold Finance disbursements surging over 3x to ₹3,230 crore and Urban Finance expanding to ₹10,320 crore. The total retail loan book expanded by 29% YoY to reach ~₹1,34,500 crore compared to ₹1,04,606 crore a year ago. The company achieved a retailisation level of 99%, up from 98% in Q2FY26.

Retail disbursements for Q2FY27 estimated at ~₹24,000 crore, up ~27% YoY from ₹18,883 crore
Retail loan book reached ~₹1,34,500 crore, marking a 29% YoY growth from ₹1,04,606 crore
Gold Finance disbursements surged over 3.2x YoY from ₹983 crore to ₹3,230 crore
Urban Finance disbursements grew 26.7% YoY to ₹10,320 crore from ₹8,143 crore
Retailisation ratio improved to 99% from 98% in Q2FY26

💡 Track the full Q2FY27 financial results to assess whether strong retail volume growth translates into stable net interest margins (NIM) and to evaluate asset quality trends across high-growth segments like Gold and Urban Finance.

LTF Allots ₹52 Cr Subordinated Tier-II NCDs at 8.20% Coupon

🟡 NEUTRAL ⭐ 3/10

FUNDRAISE 📅 29 Sep 2026, 06:46 PM

L&T Finance Limited has allotted 52 subordinated, unsecured, rated, listed, redeemable Non-Convertible Debentures (NCDs) of face value ₹1 crore each, aggregating to ₹52 crore on a private placement basis. The issue carries a fixed coupon rate of 8.20% p.a. payable annually, with final redemption on July 01, 2036. The raised funds qualify as Subordinated Debt for Tier II capital. Relative to the company's net worth of ₹27,833 crore and TTM revenue of ₹18,903 crore, the issue size of ₹52 crore represents a negligible fraction (~0.19% of net worth) and is routine treasury activity.

Allotment of 52 unsecured NCDs aggregating to ₹52.00 crore on September 29, 2026
Base issue was ₹50 crore with greenshoe option up to ₹250 crore (total size up to ₹300 crore)
Fixed annual coupon rate of 8.20% p.a. with the first payout on July 01, 2027
Maturity date set for July 01, 2036 with a residual tenor of 3,563 days

💡 Monitor regular quarterly capital adequacy ratios (CRAR) and cost of borrowing trends, though this small tranche has no material standalone impact.

L&T Finance Schedules Investor Interaction for September 25, 2026

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 18 Sep 2026, 06:28 PM

L&T Finance Limited has informed the exchanges regarding its scheduled participation in an institutional investor conference. The company is set to attend the Citi India Financials Investor Forum 2026 virtually on September 25, 2026. The meeting will be in a group format, and no unpublished price sensitive information (UPSI) will be shared.

Scheduled meeting date: September 25, 2026
Forum name: Citi India Financials Investor Forum 2026 (Group)
Mode of attendance: Virtual
Company confirmed no unpublished price sensitive information will be disclosed

💡 Track if any investor presentation updates are filed with exchanges prior to or post the September 25, 2026 forum.

L&T Finance receives ESG score of 79.15 ('Leader' category) from Niche Ninety Nine

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 18 Sep 2026, 04:26 PM

L&T Finance Limited has informed the exchanges that it received an Environment Social Governance (ESG) rating of 79.15, classified under the 'Leader' category. The evaluation was conducted by Niche Ninety Nine Capability and Certifications (OPC) Private Limited, a SEBI-registered Category II ESG Rating Provider. The rating was observed on the provider's website and stock exchanges on September 17, 2026. This announcement pertains strictly to sustainability metrics and carries no immediate financial impact on revenue or credit profile.

Assigned an ESG rating score of 79.15
Categorized under the 'Leader' rating classification
Evaluated by Niche Ninety Nine Capability and Certifications, a SEBI-registered Category II ESG provider
Rating sighted on the provider's website and exchanges on September 17, 2026, at 6:51 p.m.

💡 Track institutional ESG compliance mandates and broader operational updates; no fundamental or portfolio re-balancing action is required based on this rating.

LTF Allots ₹650 Cr Senior Secured NCDs at 7.8384% Coupon

🟡 NEUTRAL ⭐ 4/10

FUNDRAISE 📅 18 Sep 2026, 04:15 PM

L&T Finance Limited has allotted 65,000 senior, secured, rated, listed, redeemable Non-Convertible Debentures (NCDs) aggregating to ₹650 crore on a private placement basis on September 18, 2026. The NCDs carry a face value of ₹1,00,000 each and offer an annual coupon rate of 7.8384%. The debentures feature a residual tenor of 1,106 days with maturity scheduled for September 28, 2029. Compared to LTF's net worth of ₹27,833 crore and TTM revenue of ₹18,903 crore, this routine issuance represents standard balance sheet liability management.

Allotted 65,000 senior secured NCDs aggregating to ₹650 crore on September 18, 2026
Carries a coupon rate of 7.8384% p.a., with the first annual payment due September 28, 2027
Maturity date set for September 28, 2029 (residual tenor of 1,106 days)
Backed by 1.0x asset cover over identified standard receivables and/or fixed deposits
Default penalty specifies an additional 2% p.a. interest over the coupon rate

💡 Monitor upcoming quarterly results to track overall borrowing costs and Net Interest Margins (NIM) relative to the 7.84% coupon rate on new debt.

L&T Finance Schedules Investor Meetings for September 21 and September 28, 2026

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 16 Sep 2026, 05:48 PM

L&T Finance Limited has announced its participation in two upcoming investor conferences in Mumbai. The company will attend the JP Morgan Conference on September 21, 2026, followed by the Nuvama CEO Round Table on September 28, 2026. Both events will involve group and one-on-one meetings conducted in person. The company confirmed that no unpublished price sensitive information (UPSI) will be shared.

Participation in JP Morgan Conference scheduled for September 21, 2026
Participation in Nuvama CEO Round Table scheduled for September 28, 2026
Meetings to be held in person in Mumbai as group or one-on-one sessions
Company confirmed no unpublished price sensitive information (UPSI) will be discussed

💡 Investors should monitor any investor presentation uploads or post-conference transcripts published on exchanges for strategic updates.

L&T Finance Issues Postal Ballot for Board Appointments & PPI Business Entry

🟡 NEUTRAL ⭐ 5/10

MANAGEMENT 📅 03 Sep 2026, 03:55 PM

L&T Finance Limited has issued a Postal Ballot notice seeking shareholder approval for key director appointments and an expansion of its business objects. The company proposes to appoint CFO Sachinn Joshi (2-year term) and Raju Dodti (3-year term) as Whole-Time Directors, and Prashant Kumar as Independent Director (5-year term). Additionally, it seeks approval to amend its Memorandum of Association (MOA) to enter the Prepaid Payment Instruments (PPI) business, covering cards, e-wallets, and payment remittance facilities.

Proposed appointment of CFO Sachinn Joshi as Whole-Time Director for 2 years (August 10, 2026 to August 9, 2028)
Proposed appointment of Raju Dodti as Whole-Time Director for 3 years (August 10, 2026 to August 9, 2029)
Proposed appointment of Prashant Kumar as Independent Director for 5 years (July 10, 2026 to July 9, 2031)
MOA object clause amendment to enable issuance and operation of Prepaid Payment Instruments (cards, digital wallets, and remittances)

💡 Track the outcome of the postal ballot voting and subsequent regulatory approvals/product rollouts regarding the planned Prepaid Payment Instruments business.

L&T Finance Schedules Investor Site Visit and UBS Conference for September 9-11, 2026

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 02 Sep 2026, 05:58 PM

L&T Finance Limited has submitted an intimation regarding upcoming institutional investor interactions in Mumbai. The company will host a site visit with a group of investors on September 9, 2026. This will be followed by participation in the UBS Conference on September 10 and September 11, 2026, across group and one-on-one meetings. The company confirmed that no unpublished price sensitive information (UPSI) will be shared.

Site visit with group investors scheduled in Mumbai on September 9, 2026
Participation in UBS Conference (group/one-on-one) in Mumbai on September 10-11, 2026
All meetings to be conducted in-person
Company confirmed no unpublished price sensitive information (UPSI) will be disclosed

💡 Track any post-meet presentations or disclosures uploaded to the stock exchanges for incremental commentary on retail loan growth and asset quality.

L&T Finance Allots ₹500 Cr Senior Secured NCDs at 7.8384% Coupon

🟡 NEUTRAL ⭐ 3/10

FUNDRAISE 📅 02 Sep 2026, 05:39 PM

L&T Finance Limited has allotted 50,000 senior, secured, rated, listed, redeemable Non-Convertible Debentures (NCDs) with a face value of ₹1,00,000 each on a private placement basis. The total issue size is ₹500 crore, carrying an annual coupon rate of 7.8384%. The debentures mature on September 28, 2029 (residual tenor of 1,122 days) and will be listed on NSE's Negotiated Trade Reporting Platform (NTRP).

Allotted 50,000 NCDs of face value ₹1,00,000 each, raising ₹500 crore
Fixed annual coupon rate of 7.8384% payable annually until maturity
Redemption date set for September 28, 2029 with a residual tenor of 1,122 days
Secured by a 1.0x first-ranking charge over identified fixed deposits and standard receivables

💡 Track the company's overall borrowing cost trends in upcoming quarterly earnings to see how new debt issuances impact net interest margins.

L&T Finance Receives Perpetual Corporate Agent (Composite) Registration from IRDAI

🟡 NEUTRAL ⭐ 3/10

REGULATORY 📅 01 Sep 2026, 04:21 PM

L&T Finance Limited has received a Certificate of Registration (CoR) from the Insurance Regulatory and Development Authority of India (IRDAI) to act as a Corporate Agent (Composite). The CoR is effective from August 31, 2026, following the expiration of its earlier license on August 30, 2026. Unlike fixed-term renewals, this registration is perpetual in nature, remaining continuously in force subject to ongoing compliance. This ensures seamless continuation of the company's fee-income-generating insurance distribution operations.

IRDAI issued Certificate of Registration (CoR) under Regulations 9 and 11 of IRDAI Regulations, 2015
Registration effective from August 31, 2026, post expiry of previous CoR on August 30, 2026
CoR granted is perpetual in nature, subject to ongoing regulatory compliance
Registration sighted on IRDAI agency portal on August 31, 2026 at 6:50 p.m.

💡 Track fee income and third-party distribution growth in upcoming quarterly earnings to assess cross-selling traction across LTF's retail customer base.

View All LTF Announcements on Live Market Tracking →

💰 Financial Performance

Revenue Growth by Segment

Total income grew 13.4% YoY to INR 15,930 Cr in FY25 from INR 14,043 Cr in FY24. Retail loans, the primary growth engine, grew 19% YoY in Q1FY26. Within retail, Farmer Finance represents 16% of AUM, Rural Business/Microfinance 29%, and Urban Finance (Two-wheelers, Personal, Home Loans) 45%. Wholesale lending has been intentionally reduced, now comprising only 2% Infrastructure and 3% Real Estate finance as of June 2024.

Geographic Revenue Split

Not disclosed in available documents, though the company maintains a balanced distribution across Rural and Urban markets, leveraging a customer base of ~2.6 crore.

Profitability Margins

Profit After Tax (PAT) for FY25 was INR 2,643 Cr with a Return on Managed Assets (RoMA) of 2.4%, up from INR 2,317 Cr (2.2% RoMA) in FY24 and INR 1,536 Cr (1.4% RoMA) in FY23. This upward trend is driven by the strategic shift toward higher-margin retail assets and the sell-down of legacy wholesale books.

EBITDA Margin

Annualized RoMA stood at 2.3% in Q1FY26. PAT for Q1FY26 was INR 701 Cr, a slight increase from INR 685 Cr in Q1FY25. The stability in RoMA despite industry-wide pressure on unsecured lending reflects strong risk-calibrated growth.

Capital Expenditure

While traditional CAPEX is not applicable, the parent L&T has provided significant capital support, infusing ~INR 1,900 Cr in FY2021 and INR 2,000 Cr in FY2018. LTF maintains a gearing of 3.7x as of June 2025, well below the steady-state ceiling of 7.5x.

Credit Rating & Borrowing

LTF maintains a superior credit profile supported by L&T's 66.2% shareholding. Average borrowing cost was 6.9% in Q1FY25, which is lower than most NBFC peers, providing a competitive advantage in lending spreads.

⚙️ Operational Drivers

Raw Materials

For LTF, 'raw materials' are debt capital. The resource profile as of Q1FY25 consists of: Bank borrowings (56%), NCDs (34%), Commercial Paper (8%), and others (2%).

Import Sources

Not applicable as the company sources capital from domestic and international financial markets.

Key Suppliers

Primary capital providers include domestic banks (providing 56% of funds) and capital market investors for NCDs and CPs.

Capacity Expansion

Current capacity is measured by AUM, which stood at INR 1,02,314 Cr as of June 30, 2025. The retail book reached INR 99,816 Cr (98% of total AUM), expanding from 94% a year prior.

Raw Material Costs

Borrowing costs (interest expense) were 6.9% in FY24 and Q1FY25. This low cost of funds is maintained through L&T's brand name and strategic importance to the parent.

Manufacturing Efficiency

Operational efficiency is tracked via productivity metrics, which increased by 14% in the tractor segment. New tractor disbursements grew by 13% without adding additional manpower.

Logistics & Distribution

Distribution is driven by digital platforms like the PLANET App and a physical presence across rural and urban India. Distribution strength is cited as a key growth engine.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth will be achieved through 'granularization' of the portfolio, focusing on 98% retail assets. Key strategies include the expansion of the Gold Loan business (acquired PMFL's INR 1,350 Cr book), scaling 'Project Cyclops' for automated underwriting, and leveraging a 2.6 Cr customer base for cross-selling via the PLANET App.

Products & Services

Two-wheeler loans, tractor loans, home loans, microfinance (Rural Business Finance), personal loans, loan against property (LAP), SME finance, and gold loans.

Brand Portfolio

L&T Finance (LTF), PLANET App (digital platform).

New Products/Services

Launched Warehouse Receipt Financing (WRF) which saw 55% growth. Also expanding into Gold Loans via the acquisition of Paul Merchants Finance's business in June 2025.

Market Expansion

Acquired 130 branches and ~700 employees from Paul Merchants Finance to rapidly scale the gold loan portfolio in new geographies.

Market Share & Ranking

LTF is a leading retail NBFC with a strong market position in tractor and two-wheeler financing, though specific market share percentages are not provided.

Strategic Alliances

Strategic linkage with parent L&T, which provides brand equity, management oversight, and a line of credit for contingencies.

🌍 External Factors

Industry Trends

The industry is seeing a slowdown in unsecured retail segments. LTF is positioning itself by shifting toward 'risk-resilient' customer segments (Prime and Super Prime) which now make up a significant portion of their onboarding distribution.

Competitive Landscape

Competes with other large NBFCs and private banks. LTF differentiates through its 'tech-first' approach and deep rural distribution.

Competitive Moat

The primary moat is the 'L&T' brand and parentage, which ensures a steady capital supply and lower borrowing costs (6.9%). This is sustainable as long as L&T maintains its 66.2% majority stake and strategic interest.

Macro Economic Sensitivity

Highly sensitive to rural consumption trends, as 45% of the portfolio (Farmer and Rural Business Finance) depends on rural economic health.

Consumer Behavior

Increasing shift toward digital borrowing; LTF's PLANET App and digital integration in sourcing and servicing address this trend.

Geopolitical Risks

Minimal direct impact, but global inflationary pressures could influence domestic interest rates and borrowing costs.

⚖️ Regulatory & Governance

Industry Regulations

Operates under the NBFC-ICC license (received August 2024) and must comply with RBI's scale-based regulations for NBFCs. The company successfully completed a merger of its subsidiaries in Dec 2023 to simplify its regulatory structure.

Environmental Compliance

LTF has committed to carbon neutrality by 2035. In FY25, it avoided ~12,675.67 tCO2e by financing over 64,000 Two-Wheeler EVs.

⚠️ Risk Analysis

Key Uncertainties

Asset quality remains a monitorable risk; Gross Stage 3 (GS-3) assets stood at 3.31% in June 2025. A deterioration in asset quality leading to higher credit costs could impact the 2.4% RoMA.