• Credit costs: L&T Finance remains committed to reducing credit costs to 2% to 2.2% by Q4 FY27, from 2.64% in Q4 to 2.54% in Q1 and 2.46% now. Management said asset quality is stable, collections efficiency is 99.8% to 99.7%, and it is prioritising underwriting quality over disbursement growth.
• Loan growth: Management expects full-year FY27 growth of 20% plus, probably a little higher than 20%, while stressing it will not trade risk for growth. It expects farm finance and tractor performance to improve in Q3 after a strong October start.
• Gold loan expansion: Gold loans are a focus as a high-yield secured balance to unsecured lending. The book is about ₹5,000 crore now, expected to reach about ₹8,000 crore by year-end and 14% to 15% of overall loan distribution in 2 to 3 years; branches are expected to rise from 500-plus to about 800 by year-end.
• Margins and returns: NIMs and fees guidance remains 10% to 10.5%; the figure was 10.47% last quarter and 10.48% this quarter, with management expecting stability for the next two quarters. Falling credit costs and expense control support its 2.8% to 3% ROA trajectory by Q4 FY27.
• Funding and rates: The residential mortgage book of roughly ₹25,000 crore is primarily floating rate, while the remaining book is fixed. Lower-cost funding actions reduced weighted average borrowing costs by almost 25 basis points this quarter, with possible upward rate transmission into borrowing costs beginning in FY28.