L&T Finance Ltd.record PAT ₹975 Cr (+33%), credit cost 2.46%

L&T Finance's Q2 FY27 call, held on 16 October 2026, reported a record consolidated profit after tax of ₹975 crore, up 33%, on a book of ₹1,36,635 crore, up 28%.

Retail disbursements rose 27% to ₹24,027 crore. Return on assets was 2.60% and return on equity 13.56%. Credit cost eased to 2.46% from 2.54%, and management reiterated a 2% to 2.2% corridor by Q4 FY27. Net interest margin plus fees was 10.48% as the weighted cost of borrowing fell 25 basis points to a base of 6.95%, the first time below 7%. The gold loan book reached ₹5,043 crore, up 242%, across 502 branches. Rural disbursement was held flat by design, and drought-declared districts are only 3.3% of the rural book.

Management called the draft IRDAI cut in insurance commissions premature to quantify and plans a retail insurance channel, payments and AI cross-sell to offset it. Personal loan disbursement was flat while AI underwriting was rolled out across partners, with a rise promised in Q3. No earlier promises were on file for comparison.