L&T Finance

“we have successfully scaled our network to a total of 151 Sampoorna branches across the country in a short timeline of ~18 months since this concept was launched in FY25.”

“We want to set up 500 branches for Gold. We want to set up 200 branches for Micro LAP.”

“And as the last year, whatever branches were rolled out, the top line is getting beefed up with the branches getting into the breakeven zone. So yes, this will continue for at least a couple of more years.”

“Now that we have reasonable clarity on the monsoon outcome, we will carefully increase our risk-calibrated rural disbursement momentum.”

“However, you will see a little upward bias in our rural disbursement in Q3, which is primarily the festive quarter.”

“We registered a robust quarterly disbursement of ₹3,237 Cr, representing a 229% YoY growth, with our closing book reaching ₹5,043 Cr, up 242% YoY.”

“We have branches attaining critical size on an average of 6 months is what the branches are attaining critical size.”

“However, yes, on a sequential basis, the disbursement is flattish. You will see this growing in Q3 as well as Q4 again.”

“Our rabi crop, the overall reservoir levels are at about 71% pan-India. I think that's sufficient to support rabi crop, right. And I also foresee that the rabi crop should also be near normal.”

“And I expect the business momentum to pick up during Navratri as Navratri is currently going on and during the Diwali period. So, I see a reasonably strong Q3 as well.”

“Economic momentum thus remains broad based and is expected to sustain strong demand through the current fiscal year.”

“In view of the postponed rainfall, we found that the customer demand is also muted.”

“the 2026 Southwest monsoon concluded with cumulative rainfall at approximately 87% of the Long Period Average, with considerable regional variations.”

“I am pleased to inform you that consequently, credit cost has moderated to 2.46% this quarter, reflecting a further sequential improvement of 8 bps from 2.54% in Q1FY27”

“So as far as repricing is concerned, only our Mortgages, the Home Loan book is one which is variable in nature, which is about ₹25,000 Cr odd.”

“So, we really don't see any major movement of this opex to book in the near term.”

“Our NIMs + Fees, which is another focus area for us, stood stable at 10.48% against 10.47% in Q1FY27, well within our guided corridor of 10% to 10.5%.”

“Opex remained range-bound at 4.08% during the quarter despite continued investments in branch-rollouts as well as technology investments.”

“which would naturally lead to increased overall rates, the yields have already started firming up. But the base has been brought down to 6.95%”

“Yes, this quarter, as you mentioned, we have actually given a very good result in terms of 25 bps reduction in the overall weighted average cost.”

“This has actually placed us in an advantageous position because we would have at least taken care of next 3 to 4 quarters.”

“No, I will -- see, it has -- the yields have gone up anywhere between 30 to 50 basis points.”

“We have enough room to raise further short term, like I mentioned in my earlier calls also, our ALM permits us to go right up to 14%-15%”

“Our UPI stack is live and currently undergoing closed user group testing. We are implementing the agentic commerce payments stack in partnership with Pine Labs and we will unveil this effort at RAISE 2026.”

“We have also applied for a Prepaid Issuer license, and we expect to bring a host of AI enabled prepaid payment products in FY28, subject to the receipt of the PPI license from RBI.”

“During this quarter we launched Aarambh Loans, L&T Finance’s offering for the economical housing segment in non-metro and peripheral urban geographies”

“Now we're starting to accelerate that build-out also. And H2 will see an accelerated build-out of that.”

“The fact that our Rural Group Loans and MFI customers, Tractor customers and Two-Wheeler customers have borrowed more than 50,000 Cr worth of gold loans prompted our entry into the gold loan business.”

“It is born out of an experiment and it is nothing structural. In fact, we are back to similar collection efficiencies exactly in the month of October.”

“because now I know our self-cure is almost close to 43% in the Two Wheeler business. So, we wanted to check whether we can push the self-cure to 50%-55%.”

“we expect L&T Finance to navigate the IRDAI consultation paper related impact with minimal disruption to our Lakshya 2031 goals.”

“The paper proposes to rationalise the commission payouts across the board with significant cuts in credit-linked insurance and motor insurance.”

“It is to be noted that out of all the Credit Life insurance policies sold in the country, approximately 90%-95% are sold by Banks & NBFCs distribution channels.”

“I would like to point out that our collection efficiencies in Rural Business Finance remain in the corridor of 99.7% to 99.8%, which is in line with the best ever collection efficiency that we have ever seen.”

“We are being careful, and we are doing calibrated disbursements, but I do not foresee any sort of risk accentuation in the coming quarters, right?”

“Consol PAT for the quarter at ₹975 Cr, up 33% YoY”

“Retail book stands at ₹1,34,600 Cr, up 29% YoY.”

“Quarterly Retail disbursements stood at ₹24,027 Cr, up by 27% YoY”

“For example, the conversion of gold loan cross-sell leads generated by other businesses is running at 14%+ as of the first week of October’26.”

“The full complement of Hercules with the agentic AI workflows will be implemented by early December’26”