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Informist, Wednesday, Jul. 8, 2026

By Diksha Tripathy

MUMBAI – L&T Finance Ltd. is expected to report a sharp uptick in its net profit for the June quarter on the back of robust growth in its retail loan segment, according to brokerages tracking the lender.

The non-banking finance company is expected to report a consolidated net profit of INR 8.61 billion for the June quarter, up nearly 23% on year, according to an average of estimates from five brokerages. Sequentially, the net profit is expected to increase nearly 7% from INR 8.07 billion.

The highest estimate for the net profit is INR 8.71 billion from Motilal Oswal Financial Services Ltd. The brokerage cited an acceleration in loan growth and profitability trajectory for the growth in profit. L&T Finance is estimated to report year-on-year growth of about 28% in its retail loan book to INR 1.27 trillion for the June quarter, the company had said in an exchange filing. 

The company's retail disbursements were at an estimated INR 238 billion, a growth of 36% from the year-ago period. The urban finance segment formed the largest share of retail disbursements at INR 107.60 billion as of Jun. 30, L&T Finance said in an exchange filing. The acquired portfolio segment registered the sharpest rise among retail disbursements. It rose over 206% to INR 1.5 billion from INR 490 million in the year-ago period, the company had said in the filing.

The lowest estimate for the net profit was INR 8.38 billion from Nomura Financial Advisory and Securities (India) Pvt. Ltd., which cited a slight increase in the lender's credit cost for the estimate. A rise in credit cost--an expense associated with provisioning for loan losses, bad debts, and write-offs--is expected to weigh on the company's net profit, according to Nomura. However, Motilal Oswal expects the company's credit cost to decline by 10 basis points to 2.45%.

L&T Finance is expected to report a consolidated net interest income of INR 27.53 billion for the June quarter, up nearly 21% on year. Sequentially, the net interest income is expected to rise nearly 3%, according to the average of estimates. The highest estimate for net interest income was INR 28.43 billion from Nomura, while the lowest estimate was INR 26.90 billion from ICICI Securities Ltd.

Most brokerages expect the company's net interest margin, a key indicator of profitability, to remain stable. However, Motilal Oswal expects the margin to decline nearly 30 bps sequentially to nearly 10% for the June quarter.

For the March quarter, the company had reported a consolidated net profit of INR 8.07 billion on revenue of INR 47.71 billion. Wednesday, shares of L&T Financial ended at INR 314.30 apiece on the National Stock Exchange, down nearly 6% from Tuesday.

Of the 11 research estimates on the company available with Informist, 10 have a "buy" recommendation with an average target price of INR 334 per share, over 6% higher than the current market price. Only one brokerage has a "hold" call with a target price of INR 325 per share.

Following are the Apr-Jun earnings estimates, in INR billion, for L&T Finance from five brokerages, in descending order by the net profit estimate:

End

Edited by Himanshi Gupta

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