L&T Finance
L&T Finance
Financial Services F&OKey Fundamentals
MidcapInvestment CompanyFinancial ServicesTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
2- Company has delivered good profit growth of 32.4% CAGR over last 5 years
- Company has been maintaining a healthy dividend payout of 25.3%
Weaknesses
5- Stock is trading at 2.77 times its book value
- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of 6.05% over past five years.
- Company has a low return on equity of 10.8% over last 3 years.
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 2d agoL&T Finance Ltd trades at a market cap of ₹75,967 Cr with a P/E of 24.4x and P/B of 2.79x. The company has delivered strong profit growth of 32% CAGR over five years alongside TTM revenue growth of 15%, though its five-year sales CAGR of 6% and ROE of around 11% remain modest for a financial services firm.
- Strong 5-year compounded profit CAGR of 32%, indicating significant improvement in earnings trajectory
- TTM revenue growth of 15% shows acceleration from the 5-year sales CAGR of 6%, suggesting improving business momentum
- 3-year profit CAGR of 256% reflects a sharp turnaround from a low base, demonstrating operational leverage
- Consistent dividend payout ratio of 25.3% signals management confidence in sustaining earnings and returning capital to shareholders
- ROE has improved to 11% (last year and 3-year average) from 8% over the 5-year period, showing a positive trend in capital efficiency
- Stock CAGR of 33% over 1 year and 35% over 3 years reflects strong market re-rating driven by improving fundamentals
- 10-year compounded profit growth of 13% and sales growth of 9% demonstrate long-term survivability through multiple credit cycles
- Five-year sales CAGR of only 6.05% is underwhelming for a financial services company in a high-growth economy
- Low interest coverage ratio raises concerns about the company's ability to comfortably service debt obligations from operating income
- Potential capitalization of interest costs may be flattering reported profitability and understating true operating expenses
- P/B ratio of 2.79x is elevated given ROE of only 10.8% over 3 years, implying the stock may be pricing in optimistic future returns
- ROE of 10.8% over 3 years is below the cost of equity for most financial services firms, indicating subpar value creation
- P/E of 24.4x is premium for an NBFC with single-digit historical sales growth, leaving limited margin of safety
- The 256% 3-year profit CAGR is distorted by a very low or negative base, making the growth figure less meaningful on a normalized basis
- Dividend yield of 0.88% offers limited income cushion relative to the valuation premium investors are paying
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 2h ago- Macquarie initiates with ₹400 target Aug 19
Macquarie initiated coverage with an 'outperform' rating and ₹400 price target (23% upside), the highest on the street among 24 analysts, projecting 28% EPS CAGR over FY26-29.
- Aggressive gold loan branch expansion Sep 2
L&T Finance plans to add 500+ gold loan branches annually, scaling from 343 active branches to 2,500-3,000 by 2029. Gold loan book grew 182% YoY to ₹3,829 crore in Q1 FY27, with 50%+ annual growth expected.
- Gold loans to exceed 10% by 2031 Aug 18
COO Raju Dodti expects gold loans to surpass 10% of total loan book by 2031 (currently ~3%), supported by 180% growth since the ₹537 crore Paul Merchants acquisition and a shift to 60:40 secured-unsecured mix.
- Motilal Oswal top pick at ₹380 Aug 31
Motilal Oswal recommends L&T Finance at ₹322 with ₹380 target (18% upside), projecting ~30% PAT CAGR over FY26-28E with RoA and RoE reaching 2.6% and 15% by FY28E.
- Strong Q1 FY27 earnings momentum Aug 19
Q1 FY27 net profit rose 28.7% to ₹902 crore, NII up 28.4% to ₹2,925 crore, and loan book hit a record ₹1.29 lakh crore (up 27% YoY) with gross Stage 3 declining to 2.86% from 3.31%.
- Seeks approval for PPI business Sep 3
L&T Finance issued a postal ballot seeking shareholder approval to appoint three directors and amend its MOA to enter the prepaid payment instrument business.
- Permanent IRDAI corporate agent license Sep 2
L&T Finance received a perpetual IRDAI certificate as Composite Corporate Agent, enabling permanent distribution of both life and non-life insurance products.
- Investor meets scheduled in Mumbai Sep 2
L&T Finance scheduled institutional investor meetings including a site visit on Sep 9 and a UBS conference on Sep 10-11, 2026, following earlier meetings from Aug 26 to Sep 2.
- ₹235 cr NCD allotment at 7.79% Aug 20
L&T Finance allotted ₹235 crore of senior secured NCDs on private placement at a 7.7942% coupon, maturing June 2031.
TL;DR: L&T Finance is executing well on its retail transformation, with strong Q1 FY27 earnings (28.7% profit growth, record ₹1.29 lakh crore loan book) and aggressive gold loan expansion as the standout growth lever. Multiple brokerages are bullish, with Macquarie's ₹400 target being the highest on the street and Motilal Oswal projecting ~30% PAT CAGR through FY28E. No material headwinds are visible in recent news, though the stock trades at a 35-50% discount to larger peers and remains slightly negative YTD. The trend is clearly improving, with gold loan scaling, diversification into PPI and insurance distribution, and rising analyst conviction pointing to a potential re-rating if earnings delivery continues.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 3,223 | 3,214 | 3,534 | 3,670 | 3,784 | 4,019 | 4,098 | 4,023 | 4,260 | 4,336 | 4,578 | 4,771 | 5,213 |
| Expenses | 1,270 | 1,331 | 1,375 | 1,619 | 1,482 | 1,575 | 1,676 | 1,581 | 1,640 | 1,662 | 1,800 | 1,890 | 1,974 |
| Financing Profit | 590 | 557 | 806 | 716 | 950 | 968 | 853 | 842 | 984 | 1,040 | 1,075 | 1,134 | 1,269 |
| Fin. Margin % | 18% | 17% | 23% | 20% | 25% | 24% | 21% | 21% | 23% | 24% | 23% | 24% | 24% |
| Other Income | 153 | 268 | 47 | 6 | 0 | 5 | 8 | 4 | 0 | 0 | -25 | 0 | 30 |
| Interest | 1,364 | 1,325 | 1,353 | 1,335 | 1,351 | 1,476 | 1,569 | 1,600 | 1,636 | 1,634 | 1,703 | 1,747 | 1,970 |
| Depreciation | 30 | 28 | 29 | 28 | 28 | 33 | 36 | 41 | 41 | 51 | 58 | 60 | 63 |
| PBT | 714 | 797 | 824 | 694 | 922 | 940 | 824 | 806 | 943 | 989 | 992 | 1,074 | 1,236 |
| Tax % | 26% | 25% | 22% | 20% | 26% | 26% | 24% | 21% | 26% | 26% | 26% | 25% | 26% |
| Net Profit | 531 | 594 | 639 | 553 | 685 | 697 | 626 | 636 | 701 | 735 | 738 | 809 | 916 |
| EPS in Rs | 2.14 | 2.4 | 2.57 | 2.23 | 2.75 | 2.79 | 2.51 | 2.55 | 2.81 | 2.94 | 2.95 | 3.22 | 3.6 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 6,456 | 7,440 | 8,532 | 10,215 | 13,365 | 14,104 | 13,353 | 11,930 | 12,775 | 14,252 | 15,924 | 17,914 | 18,898 |
| Expenses | 1,625 | 1,979 | 2,776 | 3,308 | 3,377 | 4,160 | 5,401 | 5,233 | 7,935 | 6,195 | 6,304 | 6,946 | 7,326 |
| Financing Profit | 1,254 | 1,328 | 1,120 | 1,449 | 3,105 | 2,392 | 722 | 932 | -972 | 2,670 | 3,614 | 4,234 | 4,518 |
| Fin. Margin % | 19% | 18% | 13% | 14% | 23% | 17% | 5% | 8% | -8% | 19% | 23% | 24% | 24% |
| Other Income | 16 | 8 | 26 | 49 | -4 | 370 | 836 | 594 | 2,792 | 474 | 16 | -26 | 5 |
| Interest | 3,577 | 4,133 | 4,635 | 5,458 | 6,882 | 7,552 | 7,230 | 5,765 | 5,812 | 5,387 | 6,007 | 6,734 | 7,054 |
| Depreciation | 96 | 83 | 67 | 52 | 50 | 82 | 86 | 103 | 111 | 115 | 139 | 210 | 232 |
| PBT | 1,175 | 1,253 | 1,079 | 1,446 | 3,052 | 2,680 | 1,472 | 1,423 | 1,709 | 3,029 | 3,491 | 3,998 | 4,291 |
| Tax % | 28% | 32% | 3% | 12% | 27% | 37% | 36% | 26% | 10% | 24% | 24% | 25% | — |
| Net Profit | 855 | 857 | 1,048 | 1,278 | 2,232 | 1,700 | 949 | 1,049 | 1,536 | 2,317 | 2,643 | 2,983 | 3,198 |
| EPS in Rs | 4.04 | 3.97 | 4.83 | 5.11 | 9.06 | 6.9 | 3.93 | 4.33 | 6.55 | 9.32 | 10.6 | 11.9 | 12.71 |
| Div. Payout % | 16% | 16% | 13% | 16% | 9% | 11% | 0% | 12% | 31% | 27% | 26% | 23% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 1,720 | 1,753 | 1,756 | 1,996 | 1,999 | 2,005 | 2,469 | 2,474 | 2,480 | 2,489 | 2,495 | 2,504 |
| Reserves | 4,656 | 5,442 | 6,138 | 9,411 | 11,450 | 12,688 | 16,304 | 17,474 | 19,049 | 20,950 | 23,069 | 25,479 |
| Borrowing | 43,454 | 52,829 | 61,024 | 75,248 | 91,507 | 93,934 | 88,592 | 85,237 | 83,105 | 76,603 | 92,372 | 1,10,298 |
| Other Liabilities | 2,912 | 3,775 | 3,593 | 1,117 | 1,094 | 902 | 1,582 | 1,696 | 1,706 | 2,652 | 2,447 | 3,903 |
| Total Liabilities | 52,742 | 63,799 | 72,511 | 87,772 | 1,06,050 | 1,09,529 | 1,08,947 | 1,06,880 | 1,06,339 | 1,02,694 | 1,20,384 | 1,42,184 |
| Fixed Assets | 1,184 | 1,313 | 1,230 | 1,151 | 1,127 | 1,100 | 1,138 | 509 | 553 | 519 | 641 | 1,308 |
| CWIP | 174 | 22 | 28 | 19 | 39 | 62 | 24 | 22 | 5 | 36 | 45 | 62 |
| Investments | 2,649 | 3,563 | 6,012 | 5,301 | 8,641 | 5,979 | 8,872 | 11,917 | 14,366 | 12,385 | 11,876 | 10,564 |
| Other Assets | 48,736 | 58,901 | 65,242 | 81,301 | 96,243 | 1,02,387 | 98,912 | 94,433 | 91,415 | 89,754 | 1,07,822 | 1,30,250 |
| Total Assets | 52,742 | 63,799 | 72,511 | 87,772 | 1,06,050 | 1,09,529 | 1,08,947 | 1,06,880 | 1,06,339 | 1,02,694 | 1,20,384 | 1,42,184 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | -6,474 | -9,213 | -5,779 | -15,640 | -11,643 | 2,162 | 5,464 | 6,078 | 7,490 | 686 | -16,587 | -14,189 |
| Investing | 2 | -675 | -2,118 | 1,549 | -3,587 | 160 | -2,025 | -5,087 | -1,634 | 849 | 472 | 367 |
| Financing | 6,552 | 9,426 | 7,952 | 14,678 | 16,008 | 1,451 | -2,091 | -3,023 | -1,664 | -7,050 | 15,419 | 15,415 |
| Net Cash Flow | 81 | -461 | 55 | 587 | 777 | 3,772 | 1,349 | -2,032 | 4,193 | -5,515 | -697 | 1,593 |
| Free Cash Flow | -6,572 | -9,292 | -5,781 | -15,614 | -11,723 | 2,108 | 5,415 | 6,001 | 7,394 | 568 | -16,777 | -14,427 |
| CFO/OP | -125 | -158 | -91 | -217 | -109 | 30 | 72 | 96 | 178 | 102 | -165 | -120 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE % | 13% | 13% | 14% | 13% | 18% | 12% | 4% | 4% | 0% | 10% | 11% | 11% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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57 extracted metrics + investor summaries across FY09–FY27.
Documents
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Company Information
L&T Finance Ltd. is a NBFC, offering a range of financial products and services. [1] Company has filed requisite application for necessary registration as Systemically Important Non- Deposit Accepting Core Investment Company (NBFC-CIC)[2]
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