L&T Finance Q2 Profit Jumps 33% to Record Rs 975 Crore

L&T Finance has posted its highest-ever quarterly profit, with consolidated net profit surging 33 per cent to Rs 975 crore in the September quarter of FY27 as strong retail lending growth and improving margins powered the non-banking lender's best quarter on record. The L&T Finance Q2 results, announced on Thursday, showed total income rising 26.5 per cent year on year to Rs 5,484 crore, while profit before tax climbed 33.4 per cent to Rs 1,319 crore, underscoring the breadth of the earnings beat. The L&T Finance Q2 performance was driven by broad-based growth across urban lending segments. Net interest income rose 43.7 per cent to Rs 3,187 crore, while the retail loan book expanded 29 per cent to about Rs 1.35 lakh crore. NIM plus fees improved to 10.48 per cent from 10.22 per cent a year ago, return on assets stood at 2.60 per cent against 2.41 per cent, and return on equity came in at 13.56 per cent. The consolidated loan book grew 28 per cent to Rs 1.366 lakh crore. The L&T Finance results also confirmed retail disbursements of Rs 24,027 crore, up 27 per cent year on year. ## L&T Finance Q2: Gold and Personal Loans Lead the Charge Gold finance was the standout performer in the L&T Finance Q2 numbers. Disbursements in the segment jumped 229 per cent year on year to Rs 3,237 crore, taking the gold loan book to Rs 5,043 crore. The company now operates 502 gold finance branches, having added 372 since acquiring the business in June 2025, and plans to expand the network to 800 branches by the end of FY27, signalling an aggressive push into secured retail lending. Personal loans were another engine of growth, with disbursements rising 45 per cent to Rs 4,233 crore and the personal loan book expanding 72 per cent to Rs 18,664 crore. Two-wheeler finance disbursements grew 26 per cent to Rs 3,170 crore, while the housing and loan-against-property book rose 20 per cent to Rs 32,846 crore. Growth was slower in rural segments, with rural business finance disbursements broadly flat at Rs 6,356 crore and farmer finance disbursements dipping 1 per cent. ## Lakshya 2031: The Roadmap Beyond L&T Finance Q2 The results mark early progress on Lakshya 2031, the strategic plan unveiled in April 2026 that targets loan-book growth above 20 per cent, credit costs below 2 per cent, return on assets of 3.0 to 3.2 per cent and return on equity of 16 to 18 per cent. Management commentary accompanying the L&T Finance Q2 results said the goals remain unchanged, with the retail loan book expected to keep growing above 20 per cent annually and NIM plus fees guided in the 10 to 10.5 per cent range. The plan represents a shift from balance-sheet repair to profitable, technology-led expansion. ## AI Bets and Steady Asset Quality After L&T Finance Q2 Technology sits at the centre of the Lakshya 2031 strategy driving the L&T Finance Q2 performance. Project CYCLOPS, the company's next-generation artificial intelligence underwriting engine, has already lifted the prime customer mix in two-wheeler finance to 92 per cent from 52 per cent earlier, while cutting net non-starters to 0.3 per cent. Project HERCULES, an agentic AI platform for cross-selling, is targeted for customer launch in December 2026, with a significant scale-up in disbursements expected by the fourth quarter of FY27. Asset quality held steady through the quarter: consolidated gross stage-3 assets eased to 2.75 per cent from 3.29 per cent a year ago, the provision coverage ratio stood at 70 per cent, and borrowing costs fell to 6.95 per cent from 7.32 per cent. Investors will now watch whether the momentum seen in the L&T Finance results can be sustained into the festive quarter and whether credit costs converge towards the stated target of under 2 per cent.