L&T Finance Ltd (LTF)
🎯 Key Takeaways
- L&T Finance Ltd is in a stable growth phase, leveraging its strong promoter backing and consistent capital-raising through NCDs to expand its financial services footprint. The company maintains healthy profitability metrics with improving operational efficiency, though its ROCE remains modest at 8.
- Revenue grew 9.3% QoQ to ₹5,213 in Q1FY27.
- ⚠️ High debt-to-equity ratio of 3.93 raises concerns about financial leverage and interest burden, especially in a rising rate environment.
- Market Cap
- ₹66,371
- P/E Ratio
- 20.8
- P/B Ratio
- 2.37
- ROE
- 11.4%
- ROCE
- 8.2%
- Debt/Equity
- 3.93
- Div Yield
- 1.04%
- Promoter
- 66.0%
📖 The Story
L&T Finance Ltd is in a stable growth phase, leveraging its strong promoter backing and consistent capital-raising through NCDs to expand its financial services footprint. The company maintains healthy profitability metrics with improving operational efficiency, though its ROCE remains modest at 8.2%, indicating capital intensity. Management is focused on incremental asset base growth and debt issuance to fund operations without diluting equity.
📰 What's Happening
In September 2026, L&T Finance raised Rs 650 crores through the allotment of 65,000 non-convertible debentures with a 7.8384% coupon and maturity in September 2029, backed by hypothecation over fixed deposits and receivables. Earlier, on September 29, 2026, it raised Rs 52 crores via another NCD issuance with an 8.20% coupon and 2036 maturity. These private placements are part of a strategic capital augmentation plan to strengthen Tier II capital without equity dilution. Management confirmed no new financial guidance will be shared during upcoming investor forums, including the Citi India Financials Investor Forum on September 25, 2026.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 4,260 | 4,336 | 4,578 | 4,771 | 5,213 |
| Operating Profit | 943 | 989 | 1,017 | 1,074 | 1,206 |
| OPM % | 22.1% | 22.8% | 22.2% | 22.5% | 23.1% |
| Net Profit | 701 | 735 | 738 | 809 | 916 |
| EPS | ₹2.81 | ₹2.94 | ₹2.95 | ₹3.22 | ₹3.60 |
The company has demonstrated consistent top-line growth, with revenue rising from ₹4,260 crores in June 2025 to ₹5,213 crores in June 2026, accompanied by stable operating margins around 22-23%. Net profit and EPS have followed an upward trend, increasing from ₹701 crores and ₹2.81 EPS in June 2025 to ₹916 crores and ₹3.60 EPS in June 2026. This growth appears to be driven by expanding loan book and fee-based income, though the pace of improvement has moderated slightly in the most recent quarter, suggesting market saturation or margin pressure in core segments.
🔮 Management Outlook & What's Next
Management has not provided explicit forward guidance on revenue or profitability in the latest filings. However, the continued issuance of secured NCDs and active engagement in investor forums suggest confidence in funding capacity and a focus on maintaining liquidity. There is no indication of strategic pivot or aggressive expansion plans, implying a conservative approach to capital deployment and risk management.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 2,495 | 2,493 | 2,504 | 2,500 |
| Reserves | 23,069 | 21,775 | 25,479 | 23,858 |
| Borrowings | 92,372 | 84,985 | 1.10 L Cr | 97,970 |
| Total Liabilities | 1.20 L Cr | 1.12 L Cr | 1.42 L Cr | 1.27 L Cr |
| Fixed Assets | 514 | 425 | 1,370 | 620 |
| Investments | 11,876 | 12,471 | 10,564 | 11,389 |
| Total Assets | 1.20 L Cr | 1.12 L Cr | 1.42 L Cr | 1.27 L Cr |
The balance sheet shows a steady increase in total assets from ₹1.20 L Cr in March 2025 to ₹1.42 L Cr in March 2026, driven by growth in loan and investment portfolios. Borrowings rose to ₹1.10 L Cr from ₹97,970 crores, indicating higher reliance on external funding to support asset expansion. Equity and reserves have remained relatively stable, suggesting that growth is being financed primarily through debt rather than equity issuance, which may increase financial leverage risks over time.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | -14,189 |
| Investing | +367 |
| Financing | +15,415 |
| Net Cash Flow | +1,593 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 66.1% | 66.0% | 66.0% | 66.0% |
| FII | 6.4% | 6.7% | 7.6% | 7.7% |
| DII | 14.3% | 15.3% | 14.9% | 14.9% |
| Public | 10.2% | 10.0% | 9.4% | 9.2% |
| # Shareholders | 7,77,432 | 7,75,728 | 7,48,865 | 7,32,902 |
Promoter holding has remained stable around 66% over the past year, indicating confidence in long-term prospects. Institutional ownership (FII and DII) has shown mixed trends: FII shareholding declined slightly from 7.71% in Q1FY27 to 6.66% in Q3FY26, while DII increased from 14.33% to 15.33%. The growing number of retail shareholders (7.75 lakh to 7.33 lakh) reflects broadening retail interest. No significant promoter pledging or exit signals have been disclosed.
⚖️ Peer Comparison — Finance
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| BAJFINANCE | 5.98 L Cr | 29.4 | 10.4% | — | 3.82 |
| BAJAJFINSV | 2.77 L Cr | 27.3 | 11.4% | — | 5.50 |
| SHRIRAMFIN | 2.32 L Cr | 17.4 | 11.5% | — | 3.80 |
| ICICIAMC | 1.55 L Cr | 31.0 | 111.5% | — | 0.00 |
| JIOFIN | 1.43 L Cr | 67.3 | 2.3% | — | 0.17 |
| TATACAP | 1.39 L Cr | 25.4 | 8.4% | — | 5.28 |
| CHOLAFIN | 1.38 L Cr | 23.8 | 9.3% | — | 6.93 |
| BAJAJHLDNG | 1.20 L Cr | 13.6 | 12.4% | — | 0.00 |
| MUTHOOTFIN | 1.10 L Cr | 9.7 | 14.4% | — | 3.88 |
| PFC | 1.08 L Cr | 4.1 | 9.8% | — | 7.62 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. High debt-to-equity ratio of 3.93 raises concerns about financial leverage and interest burden, especially in a rising rate environment. 2. Operating cash flow turned negative at ₹-14,189 crores in March 2026, despite strong net income, suggesting working capital strain or capital expenditure pressures. 3. ROCE of 8.2% lags sector peers, indicating suboptimal capital efficiency. 4. Reliance on private debt issuance for funding may become costly if market conditions deteriorate.
📋 Recent Filings
- 🔴 Corporate Action2026-10-01L&T Finance Limited announced on October 1, 2026, the allotment of 49,250 equity shares under its Employee Stock Option Scheme – 2013, allotted throug…
- 🟡 Board Meeting2026-10-01L&T Finance announced a board meeting on October 15, 2026 to approve unaudited financial results for the quarter and half-year ended September 30, 202…
- 🔴 Corporate Action2026-09-29L&T Finance Limited allotted 52 non-convertible debentures on September 29, 2026, raising Rs. 52 crores through private placement. The instruments car…
- Announcement2026-09-28L&T Finance Ltd announces a trading window closure from October 1, 2026, until 48 hours after board approval of unaudited September 30, 2026 quarter r…
- 🔴 Announcement2026-09-18L&T Finance announced its schedule for upcoming investor meetings, including a virtual Citi India Financials Investor Forum on September 25, 2026. The…
- 🔴 Corporate Action2026-09-18L&T Finance allotted 65,000 non-convertible debentures at Rs 1 lakh face value each, raising Rs 650 crores nominal value via private placement on Sept…
- 🔴 Announcement2026-09-18L&T Finance Limited announced it received an ESG rating of 79.15, classified as 'leader', from Niche Ninety Nine Capability and Certifications Private…
- 🔴 Announcement2026-09-16L&T Finance Limited announced its schedule of upcoming investor meetings, including a JP Morgan conference on September 21 and a Nuvama CEO roundtable…
- 🔴 Announcement2026-09-16L&T Finance Limited announced its schedule of upcoming investor meetings, including a JP Morgan conference on September 21 and a Nuvama CEO roundtable…
- 🟡 voting results2026-09-03L&T Finance Ltd announced a postal ballot for four shareholder resolutions, including the appointment of three new directors and an amendment to its M…
🧠 Analyst's Read
L&T Finance is executing a steady capital-recycling strategy with consistent profitability and stable promoter control, but lacks a clear catalyst for accelerated growth. Investors should monitor future NCD issuances, credit quality of the loan book, and any shift in leverage or cash flow trends. The company remains a yield-oriented play with limited upside unless operational efficiency improves meaningfully.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-10-01.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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