LTF Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
Pending
verified against source
Revenue YoY
18%
reported change
EBITDA
Pending
latest reported figure
Source
screener in partial
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
L&T Finance delivered a strong Q3 FY26 with core PAT of ₹760 crores (up 21% YoY), the highest ever quarterly PAT. Retail disbursements surged 49% YoY to ₹22,700+ crores, driving retail book to ₹1,11,990 crores (up 21% YoY). NIM plus fees expanded 19bps sequentially to 10.41%, while credit cost moderated to 2.83% (down 15bps QoQ). The rural business finance and microfinance verticals have normalized, with collection efficiency at 99.7%. Cyclops underwriting engine continues to show results with two-wheeler net non-starter dropping from 2.36% to 0.41% YoY. Gold loan business scaled rapidly with ₹1,448 crores quarterly disbursements (up 43% QoQ). Management targets credit cost of 2-2.2% by Q4 FY27 and ROA of 2.8-3% by same period. Key risks include slower-than-expected MFI growth (guided at 15-20% vs. prior 25%) and unsecured exposure at 44% of AUM. Laksha 2026 milestones remain on track.
Colored figures show movement against the previous available record.
Guidance to track
- Trajectory of 3.8% → 3.43% → 2.98% → 2.83% demonstrates sustained improvement. Management confident of achieving guided corridor, potentially earlier if tailwinds persist.
- Current ROA of 2.31% (excluding exceptional items: 2.37%) expected to improve on back of credit cost normalization, operating leverage, and improved business momentum.
- Currently at 10.41%, management will maintain within this range through product mix optimization (gold loan, micro LAP growth) and continued funding cost efficiencies.
- 64 new branches added in Q3; focus on high cross-sell potential areas with SAMB (multi-product) integration. 200+ additional branches planned for FY27.
Risks flagged
- Regulatory guardrails on JLG lending constrain growth. Previously guided at 20-25%, management now targets 15-20%. This impacts a portfolio representing ~25% of total book and high-yield business.
- Management explicitly cautioned that credit cost trajectory may not move in 'metronomic regularity' and depends on quarterly collection efficiency. Some quarters may show less improvement than others.
- Analyst questioned whether company will resort to individual lending in MFI markets to compensate for lower MFI growth. Management indicated pilots possible in FY28, not FY27, signaling slower compensation timeline.
- Analyst raised question on whether Q4 FY26 ECL refresh would be positive or negative impact on credit cost. Management response focused on FY27 Q4 benefits, deflecting near-term guidance.
Key quotes
- The normalization of the RBF business augurs well for our business momentum and we expect to make gains in the same.
- Credit cost trajectory will continue to improve now some quarter it might be a significant improvement some quarter it might be less than significant improvement because this also depends upon the collection efficiencies in that particular quarter.
- We are very, very confident that as we move from quarter to quarter, the benefits of Cyclops will start flowing in and once the benefits start flowing in the models will also look at a lower PD-LGD coming into play because of a better performing book.
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