L&T Finance Ltd. share price target

In Q1FY26, LTF's interest income grew 13.37% YoY to Rs. 3,915 cr, driven by momentum in the retail segmentpersonal, SME, urban finance, and gold loans. However, interest expenses surged 21.03% YoY to Rs. 1,636 cr, resulting in a...

LTF reported a steady Q1FY26, with overall AUM crossing the Rs1trn mark and registering a 15% YoY (~13.8% excluding Gold Loans) growth, resulting from strong disbursements across the retail segment (including MFI and GL).

L&T Finance (LTF)’s 1QFY26 PAT grew 2% YoY to INR7b (in line). NII grew ~8% YoY to INR22.8b (~5% beat). Opex grew ~9% YoY to ~INR10.5b (~6% higher than MOFSLe).

LTFH remains assertive on reduction in credit cost and improvement in Asset quality in the MFI space from H2FY26. The MFIN Guardrails 2.0 will help build quality portfolios in the long term, also has limited impact in the short term.

Sustained loan book growth, a slight decline in asset quality, higher credit costs and contracting net interest margin, characterized LTF's performance in Q4FY25. Looking ahead, with the successful implementation of Project Cyclops, a comprehensive credit administration framework overhaul, and the introduction of Project Nostradamus, LTF is poised to boost disbursement in FY26, particularly in its urban and rural businesses. Continued investments in digital transformation...

L&T Finance (LTF) reported PAT of INR 6.3bn, up 2% QoQ/15% YoY in Q4FY25, translating into RoA of 2.2% and RoE of 10%. In line with guidance, LTF utilised macro prudential buffer of INR 3bn (INR 1bn utilised in Q3FY25) for its rural business finance (RBF) portfolio.

L&T Finance (LTF) reported a weaker than estimated set of numbers, with changing asset composition and interest-rate cuts in MFI causing NIM compression (35bps QoQ).

L&T Finance’s (LTF) reported 4QFY25 PAT grew 15% YoY to INR6.4b (in line). FY25 PAT grew ~14% YoY to INR26.4b. Consol. credit costs stood at INR6.2b (in line), translating into annualized credit costs of ~2.55% (PQ: 2.5% and PY: 3.2%).

L&T Finance (LTF), much like its MFI industry peers, is also navigating a tough period in microfinance but has admittedly exhibited much better asset quality performance (or lower credit costs) in the current MFI credit cycle.

L&T Finance’s (LTF) 3QFY25 PAT declined 2% YoY to INR6.3b (~6% beat). PPoP grew ~11% YoY to ~INR14.8b (in line).

LTF delivered an in-line performance in Q3FY25, in terms of AUM growth, PAT, and credit cost. However, ongoing stress in the MFI segment is expected to keep near-term asset growth below the targeted growth of 25%.

LTF launched its beta version for project Cyclops in Jun’24, which is an AI driven multi-dimensional underwriting engine. It uses alternate data sources, namely trust signals, geo signals and account aggregator data apart from traditional bureau data from multiple bureaus.

LTF reported a mixed Q2FY25 result with PAT of Rs6.96bn broadly in line with our estimates, whereas it was ~3% above Consensus estimates.

L&T Finance (LTF) reported 17% YoY growth in PAT to INR7b (in line) in 2QFY25. PPoP grew ~23% YoY to ~INR15.9b (in line).

Net earnings were almost in line due to a better performance by retail segment except MFI, higher other income, lower opex and credit cost. It also kept RoA steady.

L&T Finance (LTF) posted ~29% YoY PAT growth to INR6.9b (in line) in 1QFY25. PPoP grew ~19% YoY to ~INR14.7b (in line), while credit costs stood at INR5.4b

With its shift to a retail franchise ahead of its Lakshya 2026 target, L&T Finance’s Q1 consolidated net profit surged ~29.2% y/y to Rs6.85bn.