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L&T Finance Ltd (IN:LTF)
:LTF
India Market
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L&T Finance Ltd (LTF) AI Stock Analysis

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IN:LTF

L&T Finance Ltd

(LTF)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
₹340.00
▲(12.43% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by improving profitability but tempered by high leverage and volatile cash flow consistency. Technicals are supportive with a clear uptrend and positive momentum, while valuation is only average given a ~24.5 P/E and low dividend yield.
Positive Factors
Improved profitability and margins
Sustained operating and net margins around 23% and 17% signal structural improvement in pricing, credit performance and cost control. Higher margins support internal cash generation, build buffer for provisions and bolster long‑term return on equity, making earnings more resilient across cycles.
Negative Factors
High leverage
A debt‑to‑equity near 4x constrains balance sheet flexibility and magnifies earnings volatility if funding costs rise or asset quality weakens. Elevated leverage increases refinancing and regulatory risk for an NBFC, limiting capacity to absorb credit shocks and invest without raising new external funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability and margins
Sustained operating and net margins around 23% and 17% signal structural improvement in pricing, credit performance and cost control. Higher margins support internal cash generation, build buffer for provisions and bolster long‑term return on equity, making earnings more resilient across cycles.
Read all positive factors

L&T Finance Ltd (LTF) vs. iShares MSCI India ETF (INDA)

L&T Finance Ltd Business Overview & Revenue Model

Company Description
L&T Finance Limited, an Indian non-banking financial company (NBFC), provides a comprehensive suite of financial products and services throughout the country. Its business operations are strategically divided into four primary segments: Retail Fin...
How the Company Makes Money
LTF primarily makes money by originating loans and earning interest income over the life of those loans. Its core revenue model is typical of an NBFC: it borrows funds (through instruments such as bank borrowings, market borrowings, and securitisa...

L&T Finance Ltd Financial Statement Overview

Summary
Profitability has improved materially with steady revenue growth (2026 up ~5.3% YoY) and strong margins (2026 operating margin ~23%, net margin ~17%). Offsetting this, the balance sheet remains highly leveraged (debt-to-equity ~3.9x in 2026) and cash flows have been very volatile (large outflow in 2025 followed by strong inflow in 2026), which raises risk and lowers confidence in consistency.
Income Statement
74
Positive
Balance Sheet
56
Neutral
Cash Flow
48
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue182.41B173.55B156.66B132.36B123.19B113.44B
Gross Profit109.52B102.16B96.69B78.59B65.21B55.90B
EBITDA49.66B42.08B36.30B31.44B-4.45B13.25B
Net Income31.83B29.81B26.44B23.20B16.23B10.70B
Balance Sheet
Total Assets0.001.42T1.20T1.03T1.06T1.07T
Cash, Cash Equivalents and Short-Term Investments0.0079.59B108.33B36.48B89.04B60.88B
Total Debt0.001.10T923.72B766.03B831.05B848.51B
Total Liabilities-280.34B1.14T947.78B791.90B847.44B867.75B
Stockholders Equity280.34B279.84B255.64B234.38B215.28B199.48B
Cash Flow
Free Cash Flow-42.20B107.26B-167.82B5.67B65.90B60.01B
Operating Cash Flow-41.41B109.66B-165.86B6.86B67.18B60.75B
Investing Cash Flow-2.51B-248.06B4.71B8.49B-3.35B-50.84B
Financing Cash Flow36.07B154.33B154.19B-70.37B-16.64B-30.23B

L&T Finance Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
₹2.46T18.471.07%10.38%9.95%
66
Neutral
₹7.11T34.940.59%17.80%16.10%
63
Neutral
₹779.89B24.490.91%12.56%19.25%
63
Neutral
₹1.58T27.270.12%19.87%28.06%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
₹536.31B16.462.47%13.60%30.32%
55
Neutral
₹517.93B19.260.71%15.34%9.54%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:LTF
L&T Finance Ltd
318.80
119.26
59.76%
IN:BAJFINANCE
Bajaj Finance Limited
1,150.05
278.85
32.01%
IN:CHOLAFIN
Cholamandalam Investment and Finance Co. Ltd.
1,886.00
432.76
29.78%
IN:M&MFIN
Mahindra & Mahindra Financial Services Ltd.
398.10
150.33
60.67%
IN:SHRIRAMFIN
Shriram Finance Limited
1,117.00
493.60
79.18%
IN:SUNDARMFIN
Sundaram Finance Limited
4,679.95
233.84
5.26%

L&T Finance Ltd Corporate Events

L&T Finance files Q1FY27 investor presentation with stock exchanges
Jul 10, 2026
LT Finance Limited has submitted its latest investor and analyst presentation for Q1FY27 to the National Stock Exchange of India and BSE in compliance with SEBI’s Listing Regulations. The company has also made the presentation available on i...
L&T Finance Schedules Virtual Meets with Global Institutional Investors
Jun 3, 2026
LT Finance Limited has announced its participation in upcoming institutional investor and analyst interactions, underscoring its ongoing engagement with the global investment community. The company will attend the Nuvama India Conference 2026 (UK ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 06, 2026