Under the leadership of Managing Director and Chief Executive Officer Sudipta Roy, L&T Finance’s retail loan book expanded 29% YoY to approximately ₹1,34,500 crore (~₹1.345 lakh crore), compared to ₹1,04,606 crore a year earlier. With wholesale assets virtually wound down, portfolio retailisation reached 99% in Q2 FY27 (up from 98% in Q2 FY26), completing LTF’s transformation into a pure-play retail lender.
Banking & NBFCs · Daily brief
L&T Finance Q2 FY27 Update: Retail Disbursements Jump 27% to ₹24,000 Crore as Gold Loans Surge 3.3x and Retailisation Hits 99%
MUMBAI — L&T Finance Limited (LTF) has delivered a strong operational readout for the second quarter ended September 30, 2026 (Q2 FY27). Ahead of its formal Q2 earnings release scheduled for October 15, 2026, the non-banking financial company reported a 27% year-on-year (YoY) jump in retail disbursements to approximately ₹24,000 crore, up from ₹18,883 crore in Q2 FY26.
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The Segment Breakdown: Gold and Urban Offset Flat Rural Volumes
The standout takeaway from L&T Finance’s Q2 FY27 filing is its product-mix agility—using secured gold lending and urban retail to offset deliberate caution in rural microfinance:
- Gold Finance (3.28x YoY Surge): Disbursements more than tripled—rising 228.6% YoY to ₹3,230 crore from ₹983 crore in Q2 FY26. Following its acquisition of Paul Merchants Finance’s gold loan business and aggressive network expansion past 340 branches, gold loans now account for 13.5% of LTF’s quarterly disbursements (up from 5.2% a year ago).
- Urban Finance (+26.7% YoY): LTF’s largest engine—spanning two-wheeler finance, personal loans, and retail housing/LAP—grew steadily to ₹10,320 crore, up from ₹8,143 crore in Q2 FY26.
- SME Finance (+24.0% YoY): Business and professional lending climbed to ₹1,820 crore (vs. ₹1,468 crore in Q2 FY26), while Acquired Portfolio disbursements doubled to ₹640 crore (vs. ₹319 crore).
- Rural Business & Farmer Finance (Flat YoY): Reflecting strict underwriting guardrails amid broader microfinance stress, Rural Business Finance was held flat at ₹6,350 crore (vs. ₹6,316 crore in Q2 FY26), while Farmer Finance stood at ₹1,640 crore (vs. ₹1,654 crore).
Sources
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