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Informist, Monday, Apr. 27, 2026

 

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--L&T Finance: Will continue to invest in latest AI tools 
--CONTEXT: Comments by L&T Finance mgmt in conference call with analysts 
--L&T Finance: Expect to maintain growth momentum of FY26 in FY27 
--L&T Finance: Intend to set up over 400 gold loan branches in FY27 
--L&T Finance: Hope to maintain upward momentum, risk calibrated growth FY27 
--L&T Finance:Don't see major impact from West Asia war in any segment so far 
--L&T Finance: Remain watchful, cautious of West Asia war impact 
--L&T Finance: Expect AUM to grow over 20% in FY27 
--L&T Finance: Will build macro-prudential provisions when possible in FY27 
--L&T Finance: Plan to set up about 150 micro loan branches 
--L&T Finance: Co-lending always remains on the table for us 
--L&T Finance: Confident of credit cost falling below 2% in FY28 

 

By Pratiksha and Diksha Tripathy

 

MUMBAI/NEW DELHI – L&T Finance Ltd. does not see a significant impact on any of its portfolios from the war in West Asia so far, the non-banking financial company's senior management officials said Monday. However, it remains cautious of the evolving development. 

 

"As of now, we really do not see any significant worsening from the West Asia crisis on any of our portfolios, whether it be SME (small and medium enterprises) or any other portfolio like rural businesses and particular factors or two-wheelers," the management said in a post-earnings conference call. However, the company is looking at being cautious in its approach to the urban and secure lending, especially in the small and medium enterprises business as well as in the personal business.

 

The war in West Asia started when the US and Israel attacked Iran on Feb. 28, leading to the closure of the Strait of Hormuz and oil supplies transiting the key waterway to come to a standstill. "As we go forward in FY27 with the backdrop of the West Asia geopolitical tensions and the possibility of well-known conditions later during the monsoon season, we are hopeful that we can maintain the upward momentum in risk-calibrated growth and profitability in FY27 and beyond...," the company said.

 

L&T Finance's consolidated net profit for the March quarter was INR 8.07 billion, up almost 27% on year and 10% on quarter. Its consolidated revenue for the quarter was INR 47.71 billion, up almost 19% on year and 4% on quarter.

 

The company has guided for an over 20% on year growth in assets under management in FY27. "...as of now, we remain committed to that 20% plus growth guidance (in AUM). However, if there are unseen geopolitical events that might happen later during the year, those are not factored into the guidance," it said. 

 

In the March quarter, the non-bank financier's consolidated book grew almost 25% on year to INR 1.22 trillion. Of this, the retail book was at INR 1.20 trillion, up 26% on year. 

 

The management has also guided for the credit cost to come down to a range of 2.0-2.2% in FY27, and is confident of it falling below 2% in FY28. In the March quarter, credit cost was at 2.64%, down from 2.83% in Oct-Dec. 

 

In the March quarter, the company undertook its annual expected credit loss model refresh, resulting in a provision realignment across stages with no impact on the profit and loss statement. The management said the company will continue building macro-prudential provision in FY27 whenever there is a possibility and a requirement, which will take care of the future events.

 

Further, the non-bank lender intends to set up over 400 gold loan branches and 150 micro loan branches in FY27. "So, the rate of deployment of gold loan branches will be at a rate of almost 1 to 1.2 a day," it said. 

 

Recently, L&T Finance made a strategic shift towards becoming an artificial intelligence-powered lender, positioning it for ambitious future goals. The management said it will continue to invest in latest AI tools. "We will continue to invest in the latest AI tools, both hardware and software, and make intent to acquire market-leading talent to retain our execution lead," it said. 

 

Further, the financier said that co-lending always remains on the table for the company and it remains open to co-lending opprtunities. "We remain open to doing co-lending frameworks but obviously at terms which we think are favourable to our business philosophy," it said. At 1440 IST, the company's shares were down 0.2% at INR 289.45 on the National Stock Exchange. End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Vandana Hingorani

 

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