L&T Finance Ltd (LTF) AI Stock Analysis

• Market Cap: ₹668.82B
• Dividend Yield: 1.03%
• Average Volume (3M): 257.63K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 1.79
• Revenue Growth: 15.90%
• EPS Growth: 4.53%
• Country: IN
• Employees: 30,534
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 2.94
• Shares Outstanding: 2,501,179,700
• 10 Day Avg. Volume: 316,895
• 30 Day Avg. Volume: 257,629
• PEG Ratio: 1.05
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 2.40
• P/FCF Ratio: -2.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹260.00
• Price Target Upside: -3.33% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: ₹274.00 ▲(1.88% Upside)

L&T Finance Ltd's overall stock score is driven by strong financial performance in terms of revenue growth and profitability, but is hampered by high leverage and negative cash flows. The technical analysis indicates bullish momentum, though overbought conditions suggest caution. The valuation appears high, limiting potential upside.

L&T Finance Ltd Business Overview & Revenue Model

Company Description

L&T Finance Limited, a non-banking financial company, engages in the provision of various financial products and services in India. It operates through Retail Finance, Wholesale Finance, Defocused Business, and Others segments. The Retail Finance segment provides farmer finance services, that includes farm equipment finance and agri allied finance; rural business finance services, such as micro finance loans and rural business loans; urban finance services, that includes two-wheeler finance, consumer loans, retail housing loans, and loans against property; SME loans; and retail portfolio acquisition services. The Wholesale Finance segment offers real estate finance and infrastructure finance services. The Defocused Business segment provides structured corporate loans and debt capital market services. The Others segment offers asset management services, etc. The company was formerly known as L&T Finance Holdings Limited and changed its name to L&T Finance Limited in March 2024. L&T Finance Limited was incorporated in 1994 and is headquartered in Mumbai, India. L&T Finance Limited operates as a subsidiary of Larsen & Toubro Limited.

How the Company Makes Money

L&T Finance Ltd generates revenue primarily through interest income from its lending activities. The company earns money by providing loans to individuals and businesses, charging interest on these loans, which constitutes a significant portion of its revenue. Other key revenue streams include fees and commissions from asset management and investment products, as well as income from treasury operations. Significant partnerships with banks and financial institutions also enhance its ability to provide competitive financing solutions, while its focus on expanding its retail and wholesale lending portfolios further drives earnings. The company's diversified financial services allow it to mitigate risks and stabilize revenue through various economic cycles.

L&T Finance Ltd Financial Statement Overview

Summary

L&T Finance Ltd shows strong revenue growth and profitability with a healthy gross profit margin. However, it faces challenges with high leverage and negative cash flows, indicating potential liquidity issues and financial instability.

Income Statement

L&T Finance Ltd has shown strong revenue growth of 27.29% in the latest year, indicating a robust expansion. The gross profit margin is healthy at 61.72%, and the net profit margin stands at 16.88%, reflecting solid profitability. However, the EBIT and EBITDA margins have decreased compared to previous years, which could indicate rising operational costs or other inefficiencies.

Balance Sheet

The company has a high debt-to-equity ratio of 3.61, which suggests significant leverage and potential risk if interest rates rise or cash flows decrease. The return on equity is moderate at 10.34%, indicating efficient use of equity capital. The equity ratio is relatively low, reflecting a higher reliance on debt financing.

Cash Flow

L&T Finance Ltd faces challenges in cash flow management, with negative operating and free cash flows in the latest year. The free cash flow to net income ratio is slightly above 1, indicating that cash flows are not supporting net income effectively. The negative free cash flow growth rate is concerning and suggests potential liquidity issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	146.06B	156.66B	73.56B	132.96B	118.55B	139.85B
Gross Profit	98.15B	96.69B	138.91B	59.41B	117.17B	138.25B
EBITDA	25.07B	73.95B	74.91B	0.00	0.00	0.00
Net Income	26.59B	26.44B	23.20B	16.23B	10.70B	9.71B
Balance Sheet
Total Assets	0.00	1.20T	1.03T	1.06T	1.07T	1.09T
Cash, Cash Equivalents and Short-Term Investments	0.00	108.33B	36.48B	89.04B	60.88B	72.59B
Total Debt	0.00	923.72B	766.03B	831.05B	848.51B	885.88B
Total Liabilities	-256.31B	947.78B	791.90B	847.44B	867.75B	900.01B
Stockholders Equity	256.31B	255.64B	234.38B	215.28B	199.48B	187.73B
Cash Flow
Free Cash Flow	0.00	-167.82B	5.67B	65.90B	60.01B	54.12B
Operating Cash Flow	0.00	-165.86B	6.86B	67.18B	60.75B	54.64B
Investing Cash Flow	0.00	4.71B	8.49B	-3.35B	-50.84B	-20.24B
Financing Cash Flow	0.00	154.19B	-70.37B	-16.64B	-30.23B	-20.91B

L&T Finance Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 268.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LTF, the sentiment is Positive. The current price of 268.95 is above the 20-day moving average (MA) of 262.36, above the 50-day MA of 242.89, and above the 200-day MA of 186.38, indicating a bullish trend. The MACD of 7.50 indicates Positive momentum. The RSI at 65.56 is Neutral, neither overbought nor oversold. The STOCH value of 55.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:LTF.

L&T Finance Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDBI	―	₹1.01T	10.88	―	2.19%	11.31%	37.17%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LTF	―	₹668.82B	24.64	―	1.03%	15.90%	4.53%
MANAPPURAM	―	₹236.96B	29.62	―	1.09%	4.83%	-64.41%
LICHSGFIN	―	₹315.46B	5.68	―	1.71%	4.57%	15.87%

L&T Finance Ltd Corporate Events

L&T Finance Schedules Investor Digital Day for November 2025

L&T Finance Limited has announced the schedule for its upcoming Investor Digital Day, set to take place on November 6, 2025, at the Jio World Convention Centre in Mumbai. This event will be held both in-person and virtually, with the virtual option specifically for overseas investors. This initiative reflects the company’s commitment to engaging with its investors and stakeholders, potentially enhancing its market presence and investor relations.

L&T Finance Reports Stable Financial Results for September 2025

L&T Finance Limited announced its unaudited financial results for the quarter and half-year ending September 30, 2025, following a board meeting. The results, which include consolidated and standalone figures, were approved by the Board of Directors and will be published in newspapers. The company also disclosed related party transactions and confirmed no deviation in the use of proceeds from non-convertible securities, indicating a stable financial position and adherence to regulatory requirements.

L&T Finance Achieves Record Profit and Growth in Q2FY26

L&T Finance Ltd reported its highest ever Profit After Tax (PAT) of Rs. 735 Crore for the quarter ended September 30, 2025, marking a 5% increase quarter-on-quarter and a 6% rise year-on-year. The company’s retail book crossed the Rs. 1 lakh Crore milestone, reflecting an 18% year-on-year growth. The quarter also saw the highest ever retail disbursements at Rs. 18,883 Crore, a 25% increase year-on-year. The company achieved an upgrade in its international issuer long-term credit ratings to ‘BBB/Stable’ by S&P Global Ratings and launched a partnership with Google Pay. These developments underscore L&T Finance’s strong business model and its strategic focus on technology and customer-centric growth, positioning it well in the competitive NBFC sector.

L&T Finance Limited Releases Investor Presentation

L&T Finance Limited has submitted an investor and analyst presentation to the National Stock Exchange of India and BSE Limited. This presentation, which is also available on the company’s website, is part of their compliance with SEBI’s Listing Obligations and Disclosure Requirements. The announcement highlights the company’s commitment to transparency and communication with its stakeholders, potentially impacting its market perception and investor relations positively.

L&T Finance Releases Unaudited Financial Results for September 2025

L&T Finance Limited announced the approval of its unaudited financial results for the quarter and half-year ending September 30, 2025, during a board meeting held on October 15, 2025. The company has released consolidated and standalone financial results, along with a review report from statutory auditors, and confirmed no deviation in the utilization of issue proceeds of non-convertible securities. These disclosures are in compliance with SEBI regulations and reflect the company’s commitment to transparency and regulatory adherence, potentially impacting its market perception and stakeholder confidence.

L&T Finance Releases Q2 2025 Financial Results

L&T Finance Limited announced the approval of its unaudited financial results for the quarter and half-year ending September 30, 2025. The board meeting also covered disclosures related to related party transactions and the utilization of issue proceeds, indicating no deviation. This announcement reflects the company’s adherence to regulatory requirements and provides stakeholders with insights into its financial performance and operational transparency.

L&T Finance Allots Over 1.3 Million Shares Under ESOP

L&T Finance Limited has announced the allotment of 1,309,789 equity shares following the exercise of employee stock options under its 2013 scheme. This move is part of the company’s ongoing efforts to incentivize and retain talent, with the newly allotted shares set to rank equally with existing shares and eligible for future dividends.

L&T Finance Announces Senior Management Change

L&T Finance Limited announced a change in its senior management, with Mr. Santosh Parab, the General Counsel, superannuating from the company effective October 1, 2025. This change is part of the company’s regulatory disclosure obligations and reflects a significant transition in its leadership structure, potentially impacting its operational dynamics and stakeholder relationships.

L&T Finance Schedules September Investor Meetings

L&T Finance Limited has announced a schedule of meetings with institutional investors and analysts, set to take place in September 2025. These meetings, which include both in-person and virtual formats, aim to engage with investors without disclosing any unpublished price-sensitive information, thereby maintaining transparency and compliance with regulatory standards.

L&T Finance Credit Rating Upgraded by S&P Global Ratings

L&T Finance Limited announced that S&P Global Ratings has upgraded its credit ratings, reflecting improved financial stability and positive economic conditions in India. This upgrade signifies a stronger credit profile for L&T Finance, aligning with the overall positive outlook for Indian financial institutions amid favorable economic fundamentals and structural improvements in the financial system.