L&T Finance share price rises 4% after Q1 results 2026. Should you buy, sell or hold?

L&T Finance share price rose as much as 3.8% on Monday, July 13, after the company reported its highest-ever consolidated quarterly profit for the June quarter.

L&T shares opened at ₹321.25 today on NSE, same as the previous close on Friday. The stock touched an intraday high of ₹333.50 per share on 13 July.

L&T Finance reported a 28.7% year-on-year (YoY) rise in consolidated net profit to ₹902.47 crore for the quarter ended June 30, 2026 (Q1 FY27), compared with ₹701.10 crore in the same period last year.

The company's total revenue from operations increased 22.4% YoY to ₹5,212.92 crore during the quarter, while profit before tax (PBT) grew 31.1% to ₹943.22 crore.

Its consolidated loan book expanded 27% YoY to ₹1,29,634 crore as of June 30, 2026, from ₹1,02,314 crore a year ago. The retail loan book rose 28% to ₹1,27,535 crore from ₹99,816 crore, driven by growth across rural and urban markets, with a continued focus on high-yield loan products.

Retail disbursements climbed 36% YoY to ₹23,852 crore in Q1 FY27 from ₹17,522 crore in the year-ago quarter. Personal loan disbursements more than doubled, surging 126% to ₹4,380 crore, while farmer finance disbursements increased 11% to ₹2,453 crore.

L&T Finance also reported an improvement in asset quality during the quarter. Gross Stage 3 (GS3) assets declined to 2.86% as of June 30, 2026, from 3.31% a year earlier, while Net Stage 3 (NS3) assets improved to 0.90% from 0.99%, indicating continued strengthening of the company's loan portfolio and overall asset quality.

“Q1FY27 was another quarter where we remained focused on disciplined execution amidst an evolving macroeconomic environment marked by geopolitical uncertainties, inflationary pressures and elevated borrowing costs. Despite these external factors, our diversified retail franchise continued to demonstrate resilience, delivering strong business momentum and healthy book growth in line with the goals of our Lakshya 31 strategic plan,” said Sudipta Roy, Managing Director & CEO, LTF.

Brokerage firm JM Financial has maintained its ‘add’ rating to the L&T Finance stock, with a target price of ₹305, saying that the company has reported stronger-than-expected non-interest income drove a 4% beat in PPOP (35% YoY/10% QoQ) with reported NIM+fees stable at 10.47% (flat QoQ), in line with management guidance of 10–10.5%.

“Asset quality continued to improve with retail Stage-2/-3 declining 13bps/5bps QoQ, credit costs moderating to 2.55% (-6bps QoQ) and Stage-3 ECL coverage improving 200bps to 69%,” it said.

Meanwhile, brokerage firm Motilal Oswal said that LTF's 1QFY27 earnings were broadly in line, supported by strong disbursements, leading to healthy retail loan growth. Asset quality remained broadly stable, leading to a sequential moderation in credit costs. Despite an uncertain geopolitical environment and elevated bond yields during the quarter, CoF and NIMs + fees remained largely stable.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.

Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.

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