Q1 2026 L&T Finance Ltd Earnings Call Transcript
Key Points
- L&T Finance Ltd (BOM:533519) achieved a quarterly PAT of INR701 crores, marking a 10% increase QoQ and 2% YoY.
- The company reported a robust retail book growth of 18% YoY, reflecting strong execution and early dividends from technology investments.
- Project Cyclops, an AI/ML-based credit underwriting engine, has shown promising results, reducing net non-starters significantly in the two-wheeler finance business.
- L&T Finance Ltd (BOM:533519) has been assigned its first-ever international investment-grade ratings by S&P Global Ratings and Fitch Ratings, opening pathways for global market diversification.
- The company is expanding its gold loan business, planning to establish 300-plus branches by the end of FY26, enhancing cross-sell opportunities with its existing customer base.
- Collection efficiencies in Karnataka have been slower to recover than anticipated, impacting overall performance.
- The company utilized INR300 crores of macro prudential provisions due to challenges in Karnataka, indicating ongoing regional issues.
- There is a potential impact on yields as the company shifts focus towards prime customers, which may affect overall profitability.
- The repeat disbursement share in microfinance has increased, raising concerns about over-reliance on existing customers.
- The implementation of Project Cyclops in the Farm Equipment Finance business has led to a temporary dip in approval rates, affecting disbursement volumes.
Ladies and gentlemen, good day, and welcome to the L&T Finance Limited Q1 FY26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded. We have with us today Mr. Sudipta Roy, Managing Director and CEO; Mr. Sachinn Joshi, CFO; and Mr. Raju Dodti, COO and other members of the senior management team.
Before we proceed, as a standard disclaimer, no unpublished price-sensitive information will be shared during the call. Only publicly available documents will be referred to for discussions during the interaction in the call. While all efforts would be made to ensure that no unpublished price-sensitive information will be shared.
In case of any inadvertent disclosure, the same would, in any case, form part of the recording of the call. Further, some of the statements made on today's call may be forward-looking in nature. A note to this effect is provided in the Q1 results presentation sent out to all of you earlier.
I would now like to invite Mr. Sudipta Roy to share his thoughts on the company's performance and the strategy of the
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