HDFC Bank Limited
NSE: HDFCBANK
Financial Services · Banks - Regional
₹707.25 last close on 9 Oct 2026 +2.17%
Research updated
L&T Finance Ltd.
NSE: LTFFinancial ServicesCredit Services
- Last close
- ₹261.20
- Day change
- +₹3.80 (+1.48%)vs
- Market cap
- ₹65,843 crIndian rupees
- Research updated
- 1 report
About L&T Finance
L&T Finance Ltd. is a prominent non-banking financial company in India, providing a diverse range of financial products and services. It primarily focuses on retail and wholesale lending, catering to the financial needs across various sectors such as agriculture, microloans, real estate, and infrastructure development. The company offers loans for home purchases, construction financing, and project funding, playing a crucial role in facilitating capital flow in the economy. L&T Finance Ltd. is a subsidiary of the engineering conglomerate Larsen & Toubro Limited, lending it a strong corporate backing and operational synergies. It serves individual customers, small enterprises, and large corporations, thus integrating deeply within India's economic landscape. The company's operations are pivotal in supporting agricultural efficiencies, enhancing the infrastructure sector, and promoting financial inclusion by reaching underserved or rural markets. This makes L&T Finance Ltd. an integral component of the broader financial ecosystem in India, addressing capital requirements through structured finance solutions while also contributing to the nation's development goals.
- Sector
- Financial Services
- Industry
- Credit Services
- Listing
- NSE: LTF
- Chief executive
- Mr. Sudipta Roy
- Employees
- 41,301
- Headquarters
- Mumbai, India
- ISIN
- INE498L01015
- Website
- ltfinance.com
Public research · Report of
Business model & financial foundation
L&T Finance (NSE: LTF), Non-banking financial company - diversified retail lending: revenue of ₹11,200 crore in FY26 (+14.4% on FY25) and net profit of ₹2,981 crore.
- Revenue, FY26 (₹ crore)
- 11,200
- consolidated
- Revenue growth, FY26
- +14.4%
- on FY25
- Net profit, FY26 (₹ crore)
- 2,981
- to owners
- Return on equity, FY26
- 11.1%
- on average equity
- Market capitalisation (₹ crore)
- 76,419
- at the close of 12 Oct 2026
Company profile
L&T Finance is a Larsen & Toubro-promoted, AAA-rated NBFC that has transformed from a wholesale/infrastructure lender into a 98-99% retail franchise. Its Rs 1.30 lakh crore book (June 2026) spans rural group loans and microfinance, farm equipment, two-wheeler, personal, home loans and LAP, SME and a fast-growing gold-loan business. It earns NIM plus fees of about 10.5% of average book, against operating costs of about 4% and credit cost of about 2.5%.
| Item | Value |
|---|---|
| Legal name | L&T Finance Limited (formerly L&T Finance Holdings Limited) |
| Exchange and ticker | NSE: LTF; BSE: 533519 |
| ISIN | INE498L01015 |
| CIN | L67120MH2008PLC181833 |
| Sector | Financial Services |
| Industry | Non-banking financial company - diversified retail lending |
| Headquarters | Mumbai, India |
| Fiscal year end | March |
| Reporting basis and unit | consolidated, in ₹ crore |
| Auditor | T R Chadha & Co LLP and Brahmayya & Co (joint statutory auditors) (since 2024) |
| Market capitalisation | ₹76,419 crore (12 Oct 2026) |
| Shares outstanding | 250.03 crore shares (FY26) |
| Price | ₹261.2 (close, 12 Oct 2026) |
| 52-week range | ₹234.9 - ₹338.6 (to 12 Oct 2026) |
| Website | https://www.ltfs.com |
Corporate structure and shareholding
Parent: Larsen & Toubro Limited (65.93% at 30 Sep 2026).
| Entity | Holding | Business |
|---|---|---|
| L&T Financial Consultants Limited | 100% | Advisory / non-lending |
| L&T Infra Investment Partners Advisory Private Limited | 100% | Investment manager of infra AIF |
| L&T Infra Investment Partners Trustee Private Limited | 100% | Trustee of infra AIF |
| L&T Infra Investment Partners (AIF) | 55% | Alternative investment fund, consolidated (unaudited in FY26) |
| Grameen Capital India Private Limited | 26% | Associate |
Gold-loan business of Paul Merchants Finance acquired 9 Jun 2025 for Rs 711.93 cr (~130 branches, ~Rs 1,350 cr book).
| Shareholding (% of shares) | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|
| Promoter | 66.03% | 65.99% | 65.96% | 65.93% |
| Promoter holding pledged | 0.00% | 0.00% | 0.00% | 0.00% |
| Foreign institutions | 6.66% | 7.63% | 7.71% | 7.38% |
| Domestic institutions | 15.33% | 14.90% | 14.90% | 15.79% |
| of which mutual funds | 11.86% | 11.54% | 11.56% | 12.65% |
| Retail | 11.98% | 11.48% | 11.44% | 10.89% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
L&T Finance (NSE: LTF) is a Larsen & Toubro-promoted (65.93% at Sep-26) AAA-rated NBFC whose book is now 98-99% retail. The consolidated book was Rs1,29,634 cr at Jun-26 (+27% YoY), spread across urban finance (2W, personal loans, home loans and LAP; Rs63,615 cr), rural business finance (rural group loans/MFI and micro LAP; Rs32,493 cr), farm equipment (Rs17,514 cr), SME (Rs8,884 cr), gold (Rs3,829 cr, up 182% after the Paul Merchants acquisition) and a run-off wholesale book (Rs2,098 cr). It earns NIM plus fees of about 10.5% of average book, spends about 4.0% on opex and about 2.5% on credit cost, giving ROA of about 2.4-2.5% and ROE of 11-13% on 4x leverage. It funds itself wholesale: bank loans, NCDs, CP and ECBs at a WACB of 7.20%. It controls underwriting, its distribution footprint and its tech stack. It does not control funding costs (repo, bond yields), rural cash flows (monsoon) or regulation of the insurance cross-sell that makes up a meaningful part of its fees.
| Peer | Why the dossier compares them |
|---|---|
| Bajaj Finance (BAJFINANCE) | Largest diversified retail NBFC; consumer, personal, 2W, gold and mortgage overlap |
| Shriram Finance (SHRIRAMFIN) | Large retail NBFC with rural, 2W, MSME and gold lending |
| Cholamandalam Investment and Finance (CHOLAFIN) | Diversified vehicle, home and LAP lender of similar scale |
| Mahindra & Mahindra Financial Services (M&MFIN) | Rural tractor and vehicle finance, parent-backed like LTF |
| Sundaram Finance (SUNDARMFIN) | AAA-rated diversified vehicle and SME lender |
| Poonawalla Fincorp (POONAWALLA) | Retail NBFC pivoting to personal, gold and SME loans; similar ROE |
Financial databook
| Profit and loss (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Total income, net (NII + fee & other income) | n.r. | n.r. | 8,724 | 9,787 | 11,200 |
| Other operating costs (vendor classification) * | 1,043 | 1,284 | 1,533 | 1,580 | 1,674 |
| Profit before tax | 1,223 | -556.5 | 3,032 | 3,492 | 3,997 |
| Tax (PBT less PAT before exceptional) | 373.6 | 172.4 | 712.0 | 848.0 | 994.0 |
| Profit after tax (consolidated, after exceptional items) | 1,049 | 1,536 | 2,320 | 2,644 | 2,981 |
| Diluted EPS (₹) * | 4.32 | 6.54 | 9.30 | 10.57 | 11.88 |
| Interest income | 12,492 | 14,044 | 15,948 | ||
| Interest expense | 5,377 | 5,997 | 6,720 | ||
| Net interest income (NIM, Rs cr) | 7,115 | 8,048 | 9,228 | ||
| Fee & other income | 1,609 | 1,740 | 1,973 | ||
| Operating expense | 3,511 | 3,984 | 4,453 | ||
| Earnings before credit cost (PPOP) | 5,212 | 5,803 | 6,747 | ||
| Credit cost before macro-prudential utilisation | 2,006 | 2,711 | 3,201 | ||
| Macro-prudential provisions utilised | 0.00 | 400.0 | 450.0 | ||
| Credit cost after macro-prudential utilisation | 2,181 | 2,311 | 2,751 | ||
| Exceptional items, post-tax (labour code) | 0.00 | 0.00 | -21.3 |
| Balance sheet (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Total equity * | 20,128 | 21,618 | 23,528 | 25,631 | 28,034 |
| Borrowings * | 84,851 | 83,105 | 76,603 | 92,372 | 1,10,298 |
| Cash and cash equivalents * | 6,088 | 8,904 | 3,654 | 6,042 | 5,878 |
| Trade payables * | 432.6 | 806.4 | 1,222 | 1,372 | 1,770 |
| Net property, plant and equipment * | 80.8 | 106.5 | 115.8 | 174.5 | 458.3 |
| Total assets * | 1,02,718 | 1,20,409 | 1,42,205 | ||
| Capital work in progress * | 0.92 | 2.10 | 3.08 |
| Cash flow (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Cash from operations * | 1,825 | 4,345 | 2,392 | -5,164 | -14,189 |
| Free cash flow (vendor definition) * | 6,001 | 6,590 | 554.7 | -16,783 | -14,429 |
| Dividends paid (the provider's sign: an outflow is negative) * | -123.8 | -496.6 | -622.5 | -686.8 | |
| Capital expenditure (the provider's sign: an outflow is negative) * | -76.6 | -96.1 | -118.1 | -189.4 |
| Other reported lines (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Shares outstanding * | 247.26 | 247.69 | 248.43 | 249.26 | 250.03 |
| Quarterly profit and loss (₹ crore) | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|---|---|---|---|
| Other operating costs (vendor classification) * | 375.7 | 442.3 | 393.3 | 455.7 | 398.9 | 481.2 | 506.5 | |
| Diluted EPS (₹) * | 2.78 | 2.50 | 2.54 | 2.80 | 2.94 | 3.21 | 3.59 | |
| Interest income | 3,527 | 3,610 | 3,535 | 3,690 | 3,852 | 4,110 | 4,296 | 4,654 |
| Interest expense | 1,476 | 1,569 | 1,600 | 1,636 | 1,634 | 1,703 | 1,747 | 1,970 |
| Net interest income (NIM, Rs cr) | 2,051 | 2,041 | 1,936 | 2,054 | 2,218 | 2,407 | 2,549 | 2,684 |
| Fee & other income | 440.0 | 439.0 | 477.0 | 493.0 | 474.0 | 513.0 | 492.0 | 605.0 |
| Operating expense | 958.0 | 1,058 | 1,004 | 1,049 | 1,068 | 1,135 | 1,201 | 1,267 |
| Earnings before credit cost (PPOP) | 1,534 | 1,423 | 1,409 | 1,499 | 1,624 | 1,785 | 1,839 | 2,023 |
| Credit cost after macro-prudential utilisation | 595.0 | 598.0 | 603.0 | 556.0 | 635.0 | 792.0 | 768.0 | 800.0 |
| Credit cost before macro-prudential utilisation | 595.0 | 698.0 | 903.0 | 856.0 | 785.0 | 792.0 | 768.0 | 800.0 |
| Macro-prudential provisions utilised | 0.00 | 100.0 | 300.0 | 300.0 | 150.0 | 0.00 | 0.00 | 0.00 |
| Total income, net (NII + fee & other income) | 2,491 | 2,480 | 2,412 | 2,548 | 2,692 | 2,920 | 3,041 | 3,289 |
| Profit before tax | 939.0 | 825.0 | 806.0 | 943.0 | 989.0 | 993.0 | 1,072 | 1,223 |
| Exceptional items, post-tax (labour code) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -21.3 | 0.00 | 0.00 |
| Tax (PBT less PAT before exceptional) | 243.0 | 199.0 | 170.0 | 242.0 | 254.0 | 233.0 | 265.0 | 321.0 |
| Profit after tax (consolidated, after exceptional items) | 696.0 | 626.0 | 636.0 | 701.0 | 735.0 | 739.0 | 807.0 | 902.0 |
Consolidated, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue growth | 12.2% | 14.4% | |||
| Net margin | 26.6% | 27.0% | 26.6% | ||
| Return on equity | 5.4% | 7.4% | 10.3% | 10.8% | 11.1% |
| Return on assets | 2.3% | 2.4% | 2.3% | ||
| Dividend payout | 8.1% | 21.4% | 23.5% | 23.0% | |
| EPS, diluted (₹) | 4.32 | 6.54 | 9.30 | 10.57 | 11.88 |
| Book value per share (₹) | 81.40 | 87.28 | 94.71 | 102.8 | 112.1 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on assets: net profit to owners / average total assets.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Diluted EPS).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 1, information to 12 Oct 2026); market data at the close of 12 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
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What the full research on L&T Finance includes
Every piece of Mool’s research is built the same way: a researched evidence base, analyses that build on each other, a research model and a report with the call. This page shows the first analysis.
The report and Mool’s call
- The 12-month rating and target
- The 3-month view
- Mool's estimates beside the street's
- The claims the view rests on, and what would change it
The analyses, among them
- Business model & financial foundationOn this pageWhat the company does and how it makes money, its structure, five years of financials and the metrics that matter for it.
- Future earnings & financial modelForecasts built from the drivers that move the business, by scenario, beside the street's.
- Fundamental valuation & 12-month thesisWhat the business is worth on several methods, what the market already prices in and the 12-month thesis that follows.
The research model
The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
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Report history
Reports on L&T Finance
- Research reportLatest
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Prices are the last close on the NSE, 9 Oct 2026. Research from Mool’s report of 12 Oct 2026; page updated 12 Oct 2026.
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