L&T Finance rallies 9% in weak market; why NBFC stock hit new high?

Share price of L&T Finance today

 

Shares of L&T Finance (LTF) hit a new high of ₹300.60, as they rallied 9 per cent on the BSE in Friday’s intra-day amid heavy volumes in an otherwise weak market after the company said it recorded its highest-ever monthly retail disbursement in October 2025.

 

The stock price of the L&T group non-banking finance company (NBFC) surpassed its previous high of ₹284.35 touched on November 4, 2025. In comparison, the BSE Sensex was down 0.59 per cent at 82,824 at 10:55 AM.

 

Thus far in the calendar year 2025, the stock price of L&T Finance has zoomed 122 per cent, as compared to 5.5 per cent rise in the BSE Sensex. 

 

What’s driving L&T Finance stock price?

 

LTF is one of the leading national players in rural business, two-wheelers, and farm equipment finance. The company has a granular and diversified loan book, of which 97 per cent is towards the retail segment. Its biggest lending exposures are in rural and microfinance finance, farmer finance and two-wheeler finance, which accounts for about 55 per cent of its total lending.

 

In the investor presentation/analyst presentation, LTF on Thursday, November 6, 2025, said the company reported its highest-ever monthly retail disbursement in October 2025. Retail finance disbursement grew 39 per cent year-on-year (YoY) at ₹8,009 crore. Urban finance (₹3,697 crore) and Rural finance business (₹2,169 crore) up 49 per cent and 42 per cent, respectively.

 

LTF started gold loans to introduce a high-yield low-risk product. The company launched the first new Sampoorna Gold Loan branch in Ujjain on October 30, 2025. LTF’s strategy is to expand into high-yield secured gold loans, a market growing at CAGR of 20 per cent plus. The company said ₹ ~17K crore of gold loans borrowed by existing micro loans customers, potential to enable cross-selling.  ALSO READ | Nifty may crash 1,000 pts if it closes below 25,372 today; check strategy 

On the Investor Digital Day 2025, LTF showcased the progress of its digital lending model, AI-driven underwriting platform Cyclops, automated portfolio management engine Nostradamus, Planet 3.0 and Helios (AI underwriting co-pilot). 

 

The central theme was LTF's drive to become a "risk first, tech first, multi-product, retail financier of choice". The event highlighted significant achievements in core business acceleration, the scale-up of proprietary AI systems, cultural transformation, and key financial metrics, particularly strong disbursement growth and improved asset quality indicators, Motilal Oswal Financial Services (MOFSL) said.

 

LTF has invested in process automation and customer journeys. This, along with large partnerships with digital behemoths, should lead to a stronger and more sustainable retail loan growth. While there is industry-wide stress in non-MFI retail segments like unsecured business loans and micro-LAP, the brokerage firm expects the stress to subside within the next few quarters. MOFSL reiterated its BUY rating on the stock with a target price of ₹330 (based on 2.5x Sep’27E P/BV).  ALSO READ | Cummins India share hits all-time high as Q2 profit zooms 42% YoY; details 

Meanwhile, LTF reported a steady performance in the second quarter (July to September) of financial year 2025-26 (Q2FY26). Retail disbursements stood at ₹18,884 crore (up ~25 per cent YoY, 7.8 per cent QoQ), primarily led by personal loans and rural business finance. Retail book expanded 18 per cent YoY to ₹1.04 trillion, while consolidated asset under management (AUM) increased 15 per cent YoY to ₹1.07 trillion.

 

Superior navigation amid volatility in microfinance institution (MFI) cycle imbibes confidence. Strategy to grow in a risk calibrated manner with focus on gold loans and anticipated revival in MFI bodes well for business momentum as well as margins. Increased adoption of technology is expected to aid efficiency and structural improvement in credit cost resulting in improvement in RoA, ICICI Securities said in the Q2 result update.  Anticipating improvement in H2FY26, the brokerage firm revised its target price on LTF to ₹310, valuing the stock at ~2.5 FY27E BV.