L&T Finance Limited (LTF)
Mid CapFinancial Services stocks · Mid cap · NSE
L&T Finance Limited (LTF) is an Upper Layer NBFC, part of the L&T Group, offering diverse financial products and services. It boasts a granular retail franchise with 2,800+ branches, 2.9 Cr+ customers, and a book of over ₹1,29,000 Cr, aiming to be a Risk-first, Tech-first AI-native institution.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Excellent · 75/100Rev +22% YoY · PAT +31% YoY · +9% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,213 Cr | +22.4% | +9.3% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹916 Cr | +30.7% | +13.2% |
| PAT margin | 17.6% | +111 bps | +61 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q1FY27 saw robust retail book growth (+27% YoY, +6% QoQ) and PAT (+29% YoY, +12% QoQ). RoA improved to 2.48% (+11bps YoY, +8bps QoQ) and RoE to 12.71% (+185bps YoY, +100bps QoQ), driven by strong disbursements and stable NIMs+Fees.
Management reports strong Q1FY27 performance, with book growth and profitability metrics (RoA, RoE) showing positive trends and aligning with Lakshya 2031 goals. Credit cost remains above target, but shows sequential improvement. Digital and AI initiatives are key to future delivery.
Book Mix by Geography
Latest issuer-disclosed distribution across 2 reported categories.
Deep Tech & AI Stack
positiveProprietary AI stack (Cyclops, Nostradamus, Co-pilots) is the operating system for customer lifecycle management, aiming for sustained growth and improved credit.
Retailization Strategy
positiveRetail book increased by 28% YoY to ₹1,27,535 Cr, now comprising 98% of the total book.
Granular Distribution Network
positiveExtensive network with 2,800+ branches, 2.9 Cr+ customer database, and active presence in ~2,00,000 villages and 450+ cities/towns.
Private Cloud Build-out
positivePhase 4 (Private Cloud Testing by Developers) is in progress (Jul-Aug '26), with workload migration from Public to Private Cloud planned for Aug-Dec '26.
Gold Finance Branches
positiveActive Gold Finance branches increased to 343 in Q1FY27 from 130 in Q1FY26, driving 182% YoY book growth.
New Villages Activated (Rural Group Loans & MFI)
neutralNew villages activated for Rural Group Loans & MFI increased to 23,467 in Q1FY27 from 24,430 in Q1FY26 (QoQ decline from 28,335 in Q4FY26).
Digital Adoption
positive100% digital disbursements, 99% eNach penetration (Urban), 97% digital collections (Urban), and 44% digital collections (Rural).
Improved Credit Quality Trends
positiveIndustry-leading delinquency levels reported across Rural Business Finance, Farm Equipment, Two-Wheeler, Home Loans, and LAP segments.
Diversified Liability Mix
positiveProactive Asset Liability Management and diversified liability mix anchored Q1FY27 WACB at 7.20%, supported by 'AAA' domestic ratings.
Credit Cost Above Target
negativeCredit cost of 2.54% in Q1FY27 remains above the Lakshya 2031 goal of <2%, despite sequential improvement.
Execution Risk of AI/Tech Transformation
neutralAmbitious AI-native strategy requires successful implementation and integration of complex proprietary tech stack (Cyclops, Nostradamus, Co-pilots, Canyon).
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing long-term growth and seasonal impacts in financial services, while QoQ comparison highlights sequential momentum in disbursements, asset quality, and profitability.
Book (AUM)
positiveBook increased by 27% YoY and 6% QoQ to ₹1,29,634 Cr in Q1FY27.
Disbursements
positiveDisbursements grew 36% YoY to ₹23,852 Cr in Q1FY27, though declined 1% QoQ.
NIMs + Fees
neutralNIMs + Fees remained flat QoQ at 10.47% in Q1FY27, up 25bps YoY.
Weighted Average Cost of Borrowing (WACB)
positiveWACB was 7.20% in Q1FY27, down from 7.25% in Q4FY26 and 7.68% in Q1FY26.
Lakshya 2031 Goals
positiveManagement aims for 20%+ book growth, <2% credit cost, 3.0-3.2% RoA, and 16-18% RoE by 2031.
AI as Core Operating Philosophy
positiveAI & Tech at LTF is not a means, it is a core operating philosophy to deliver sustained growth, improved credit, and reduced opex.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Book Growth | 27% YoY | Sustained growth above 20% as per Lakshya 2031 goals. |
| Credit Cost | 2.54% | Further reduction towards the Lakshya 2031 target of <2%. |
| Return on Assets (RoA) | 2.48% | Continued improvement towards the Lakshya 2031 target of 3.0-3.2%. |
| Rural Digital Collections | 44% | Increase in digital collection penetration in rural segments to enhance efficiency. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
57NeutralSMA20 +1.5% / mo · MACD −
Technical chart
LTFdaily · 1Y · AUTO+14.0%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 49. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~1.5% over last month) — short-term momentum positive.
- RSI(14) at 49 — sideways, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 7% off 52W high · 36% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 8.2% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +1.3%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 27 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 27 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 11.0%.
- Growth contributes 18/25 to the score.
- Cash flow contributes 3/10 to the score.
Main drags
- Altman Z is 0.7, in distress territory.
- Balance sheet is weaker at 0/15; verify the latest quarterly trend.
- Quality is weaker at 1/20; verify the latest quarterly trend.
NBFC valuation: P/B, ROA, borrowing cost, and asset quality
Lenders can look optically cheap before credit losses emerge, so valuation is tied to book quality.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 32nd percentile of the scored universe and 49th percentile within Financial Services. Main check: balance sheet trust is weak at 22/100.
Healthy Trust Lite: Promoter holding is 66%. Key concern: Operating cash flow is negative at ₹-14189 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Financial Services: 49th pctile, median 62 · Mid: 17th pctile, median 76
138 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 66%.
- ▸Promoter pledge is zero.
- ▸5 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸Operating cash flow is negative at ₹-14189 Cr.
- ▸Debt/equity is 3.94.
- ▸Altman Z is 0.74.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 24.60
- P/B
- 2.80
- EV/EBITDA
- 814.64
- Market Cap
- 78699.00Cr
Profitability
- ROE
- 11.20%
- ROCE
- 8.40%
- ROA
- 2.25%
- Dividend Y
- 0.88%
Growth (CAGR)
- Revenue 5Y
- 6.00%
- EPS 5Y
- 32.00%
- Revenue 3Y
- 12.00%
- EPS 3Y
- 80.00%
Balance Sheet
- Debt/Equity
- 3.94
- Interest Coverage
- —
- Altman Z
- 0.74
- Book Value
- 112.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 5/5
- OCF
- -14189.00 Cr
- EPS TTM
- 12.71
Shareholding
- Promoter Hold
- 65.96%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 77%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.