Shares of L&T Finance slid 6% to ₹252.55 on Friday, even as the company reported a 32.4% jump in Q2 net profit after tax to ₹972.76 crore.
Pre‑provision operating profit rose 30.3% to ₹1,947.53 crore, while net interest income climbed 32.6% to ₹3,187.36 crore. Net interest margin expanded to 8.88% from 8.54% sequentially, and the total loan book grew 28% YoY to ₹1.36 lakh crore.
Gross stage‑3 loan loss provisions fell to 2.7% from 2.86% sequentially, and credit cost reduced to 2.46% from 2.54% last quarter. Retail disbursements were up 27% at ₹24,000 crore, and the retail loan book increased 29% to ₹1.35 lakh crore.
Twenty analysts rate the stock ‘buy’, with a consensus price target of ₹320, implying a 31% upside from the current trading price. Elara Capital tops the street at ₹390, suggesting a 56% gain, while Morgan Stanley’s bearish target sits at ₹210.
With FY26 results still pending, market sentiment remains cautious after Friday’s slide. Investors will be watching for guidance on loan growth and margin expansion in the next earnings release.