L&T Finance reported a 32.7% year-on-year increase in consolidated net profit to ₹975 crore for the second quarter of FY27, compared with ₹735 crore in the year-ago period, as growth in its retail lending business boosted earnings.
Net interest income (NII), the difference between interest earned and interest paid, rose 43.7% to ₹3,187 crore in Q2 FY27 from ₹2,403 crore a year earlier.
Retail loan disbursements increased 27% year-on-year to ₹24,027 crore during the quarter, while the retail loan book expanded 29% to ₹1,34,600 crore from ₹1,04,607 crore in the corresponding quarter last year.
The company attributed growth to business segments across rural and urban markets, with a focus on higher-yielding loan products.
Gold finance and personal loans drive growth
L&T Finance’s gold loan book grew 242% year-on-year to ₹5,043 crore in Q2 FY27 from ₹1,475 crore in Q2 FY26. Disbursements in the segment rose 229% to ₹3,237 crore from ₹983 crore.
The company ended the quarter with 502 gold finance branches, having added 372 since acquiring the business in June 2025.
Its personal loan book expanded 72% to ₹18,664 crore from ₹10,878 crore, while disbursements increased 45% to ₹4,233 crore from ₹2,918 crore.
Two-wheeler finance disbursements rose 26% to ₹3,170 crore from ₹2,512 crore, and the loan book grew 24% to ₹16,158 crore from ₹13,013 crore.
The housing loans and loan against property (LAP) book increased 20% to ₹32,846 crore, while disbursements rose 8% to ₹2,926 crore. The small and medium enterprise (SME) finance book expanded 27% to ₹9,495 crore, with disbursements up 24% at ₹1,820 crore.
Growth was weaker in some rural lending segments. Rural business finance disbursements were broadly flat at ₹6,356 crore against ₹6,316 crore a year earlier. Farmer finance disbursements fell 1% to ₹1,643 crore from ₹1,654 crore.
Credit costs ease from previous quarter
Consolidated credit costs stood at 2.46% in Q2 FY27, down from 2.54% in the previous quarter.
Return on equity (RoE), a measure of profitability relative to shareholders’ funds, rose to 13.56% from 11.33% in Q2 FY26. Return on assets (RoA) increased to 2.60% from 2.41% a year earlier.
Managing Director and CEO Sudipta Roy said L&T Finance remained focused on disciplined lending, portfolio monitoring and collections while expanding its gold finance, micro LAP, personal loan and two-wheeler finance businesses.
He added that investments in artificial intelligence, particularly in credit administration and portfolio management, were expected to improve credit decisions, identify early warning signs and enhance operational efficiency.
L&T Finance shares rose 1.24% to ₹262 on October 15, ahead of the announcement of its Q2 FY27 results.
Also Read: Analysis-Market selloff, rising rates test AI data centre deal boom