L&T Finance reported a record Q1 FY27 performance, with consolidated net profit rising 29% year-on-year to ₹902 crore, driven by strong retail loan growth, higher disbursements, and improved asset quality. The company also strengthened its AI-led lending strategy, supporting operational efficiency and reinforcing its long-term retail-focused growth plans.
L&T Finance Ltd reported a strong performance for the first quarter of FY27, with consolidated net profit rising 28.7% year-on-year to a record high of ₹902 crore compared with ₹701 crore in the same quarter last year. The growth was driven by robust retail business expansion, higher loan disbursements, improvement in asset quality and disciplined execution across segments.
The company’s consolidated total income increased 23% year-on-year to ₹5,243 crore from ₹4,260 crore in Q1 FY26. Net Interest Income (NII) grew 28.4% to ₹2,924.8 crore, supported by strong retail loan growth and improved business momentum.
Strong Growth In Retail Lending Business
L&T Finance continued to strengthen its retail-focused lending strategy, with retail disbursements rising 36% year-on-year to ₹23,852 crore compared with ₹17,522 crore in the corresponding quarter of the previous fiscal year.
The company’s consolidated loan book expanded 27% to ₹1,29,634 crore from ₹1,02,314 crore a year ago. The retail loan book also increased 28% year-on-year to ₹1.28 lakh crore, exceeding the company’s Lakshya 2031 target of achieving more than 20% growth.
Growth remained broad-based across key retail segments. Personal loan disbursements more than doubled, increasing 126% year-on-year to ₹4,380 crore. Gold loan assets surged 182% to ₹3,829 crore following the acquisition of the business last year. Two-wheeler finance disbursements grew 41%, while rural business finance disbursements increased 24% during the quarter.
Improvement In Asset Quality And Profitability
The company reported continued improvement in asset quality during the quarter. Gross Stage 3 assets declined to 2.86% from 3.31% in the year-ago period, while Net Stage 3 assets improved to 0.90% from 0.99%.
Credit cost also moderated to 2.54%, reflecting stronger underwriting standards, improved collections and increased use of artificial intelligence-driven risk management systems.
Return on Assets (RoA) improved to 2.48% in Q1 FY27 compared with 2.37% in Q1 FY26, highlighting better profitability and operational efficiency.
Focus On AI-Driven Transformation
L&T Finance is accelerating its transition towards becoming an AI-native financial institution by integrating technology and analytics across its lending operations.
The company has deployed its proprietary AI ecosystem across the lending lifecycle, including AI-based credit assessment through “Project Cyclops”, portfolio monitoring through “Project Nostradamus” and a growing suite of AI copilots and agents designed to improve efficiency and customer experience.
Commenting on the results, Sudipta Roy, Managing Director and CEO of L&T Finance, said that Q1 FY27 was another quarter of disciplined execution despite challenges such as geopolitical uncertainties, inflationary pressures and elevated borrowing costs.
He added that the company’s diversified retail franchise continued to demonstrate resilience, delivering strong business momentum and healthy book growth in line with the Lakshya 31 strategic plan.
With record quarterly profitability, expanding retail operations, improving asset quality and increased adoption of AI-based lending solutions, L&T Finance continues to strengthen its position as a technology-focused retail financial services company.
