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Q1: 2026-04-23 Earnings Summary

EPS of $1.68 beats by $0.18

 | Revenue of $275.30M (7.49% Y/Y) beats by $7.09M

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Non-bank lender L&T Finance on Friday reported a 27 per cent rise in the March quarter’s consolidated profit after tax (PAT) to Rs 807 crore on sharp rise in interest income and retail disbursements.

On a sequential basis, net profit rose 6 per cent.

Its core net interest increased to Rs 4,424.03 crore in the reporting quarter from Rs 4,240.07 crore a quarter ago and Rs 3.749.88 crore in the year-ago period.

“Through the course of the year, we remained steadfast in our approach, tightening credit and risk administration frameworks, strengthening collections infrastructure, accelerating our AI-led technology transformation and continuously focusing on growth across all our business lines,” Sudipta Roy, Managing Director and Chief Executive Officer at L&T Finance, said.

In the microfinance business, the focus was on navigating the cycle with prudence and the efforts have yielded results, Roy said, adding that business parameters across disbursements and collection efficiencies are now reverting to near pre-crisis levels.

The company is confident that FY27 will be a stable and productive year for this segment.
The total revenue from operations increased to Rs 4,771.03 crore in Q4 FY26 compared to Rs 4,578.27 crore in Q3 FY26 and Rs 4,022.92 crore in Q4 FY25, according to its financial results.In the reporting quarter, retail disbursements grew 62 per cent to Rs 24,107 crore in Q4 FY26 from Rs 14,899 crore in Q4 FY25.

The growth in secured disbursements led by two-wheeler finance at Rs 2,930 crore, a rise of 58 per cent year-on-year.

Personal loan disbursements rose 98 per cent to Rs 3,786 crore, rural business finance disbursements increased 41 per cent to Rs 7,208 crore, investor presentation showed.

Its retail book rose 26 per cent year-on-year to Rs 1,19,508 crore, and consolidated stood at was Rs 1,21,728 crore.

The wholesale book of the company declined 14 per cent to Rs 2,220 crore as of March 31, 2026, from Rs 2,582 crore a year back.

The company has seen an improvement of 0.06 per cent in net interest margins (NIM) plus fees. It stood at 10.47 per cent in Q4 FY26 compared to 10.41 per cent in Q3 FY26.

Credit costs improved in the reporting quarter at 2.64 per cent from 2.83 per cent in the preceding December quarter.

The L&T Finance scrip closed 0.56 per cent down at Rs 290.45 a piece on the BSE against a 1.29 per cent correction on the benchmark.

In today’s stock market environment—marked by volatility, geopolitical uncertainty, fluctuating interest rates, and shifting global capital flows—investors are increasingly rediscovering a timeless truth that great businesses are often a reflection of great leadership.

As markets swing between optimism and caution in 2026, the ability to identify exceptional CEOs has become a critical edge for long-term investors. While short-term trades may be driven by sentiment, long-term wealth creation still depends on leadership quality and capital allocation discipline.

The Core Principle: Measure What Truly Matters

According to the insights of renowned author and investor William Thorndike, evaluating a CEO does not require overly complex metrics. Instead, it boils down to a simple but powerful framework:Shareholder returns during the CEO’s tenure
Comparison with peer companies

Performance relative to the broader marketThis relative performance approach is crucial in today’s environment. With benchmark indices experiencing cycles of rapid rallies and corrections, outperformance—not just absolute returns—is the real signal of leadership strength.

Capital Allocation: The Defining Skill

Modern investing increasingly recognises that a CEO’s most important role is not just running operations—but allocating capital wisely.
Research and market commentary consistently show that CEOs who think like investors—deploying cash into high-return opportunities, avoiding wasteful expansion, and maintaining financial discipline—tend to outperform over time.

In fact, so-called “outsider CEOs” often stand out because they:

Focus on cash flows rather than accounting profits
Practice frugality and disciplined spending
Decentralise operations while retaining capital control

In a market like today’s—where liquidity conditions are tightening and capital is no longer cheap—these traits are not optional; they are essential.

Why This Matters More in 2026

Recent market trends reinforce the importance of leadership quality:

Investors are shifting toward “quality investing”, favouring companies with strong fundamentals and resilient management.

Market behaviour is increasingly influenced by uncertainty and macro shocks, making leadership decisions more impactful than ever.

Long-term compounders—companies that steadily grow over the years—are being preferred over speculative, short-term plays.

In such an environment, a mediocre CEO can destroy value quickly, while a great one can navigate turbulence and emerge stronger.

The Long-Term Lens: Thinking Beyond Market Noise

One of the biggest mistakes investors make is focusing too much on quarterly earnings or short-term stock movements. Great CEOs, by contrast, think in decades—not quarters.

Evidence shows that companies with long-term orientation tend to deliver:

Higher revenue growth
Better profitability
Stronger shareholder returns over time

This aligns closely with the philosophy of legendary investors, who emphasize understanding businesses deeply and trusting capable management over reacting to price fluctuations.

Key Traits of Great CEOs for Investors to Watch

1. Deliver Consistent Outperformance

Not just growth—but growth that beats peers and markets.

2. Excel at Capital Allocation

They treat company cash like an investor would.

3. Focus on Cash Flow Over Optics

Avoiding accounting illusions and prioritising real value creation.

4. Maintain Discipline in Tough Times

Especially critical in volatile cycles like today.

5. Think Long-Term

Resisting pressure for short-term gains at the cost of future value.

Leadership Is the Ultimate Moat

In a world where information is abundant, and markets are increasingly efficient, edge comes from judgment—not data. Identifying great CEOs offers that edge.

As the 2026 market continues to evolve, investors who focus on leadership quality—rather than chasing trends—are more likely to build sustainable wealth. Because in the end, stocks are not just numbers on a screen—they are businesses led by people. And the right people make all the difference.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Market regulator Securities and Exchange Board of India (Sebi) will work to accelerate its drive to simplify and rationalise regulations for ease of doing business by all participants in our capital market, Chairman Tuhin Kanta Pandey said on the occasion of its 38th foundation day.

“Today is an important day to ask- what is our way forward? Our collective resolve is unambiguous. We will collaborate to bring innovations for market development such that capital formation contributes to faster economic growth. We will continue to invest in technology-led supervision,” Pandey said.

The event was also attended by Finance Minister Nirmala Sitharaman.

Pandey said that Sebi will work towards strengthening governance and risk management frameworks and capabilities while emphasising the role of other market stakeholders.

“At this point, it is also important to recognise that markets are not built by regulators alone. Industry participants must move beyond compliance to a deeper commitment to fairness, integrity and innovation. Intermediaries must recognise that they are often the first point of trust for

investors. Investors themselves must remain aware and responsible in their participation,” the Sebi chief said.
Pandey said Indian markets have demonstrated strong resilience despite global uncertainties such as geopolitical tensions and rapid technological shifts, reflecting years of institution-building and robust regulation. Marking 38 years of Securities and Exchange Board of India, he highlighted Sebi’s evolution from an open outcry system to a technology-driven, transparent and globally integrated market through reforms like dematerialisation, screen-based trading and improved risk management.
He noted that India’s markets today are defined not just by scale — with over 5,900 listed companies, 140 million investors, and steady growth in market cap and mutual funds — but also by rising retail participation and digital adoption. Pandey emphasised that this growth brings added responsibility to balance innovation with investor protection and sustainable development.
Also read: Sebi plans risk-based calculation for brokers’ variable net worth
He added that recent reforms have focused on easing business, strengthening investor safeguards, and improving efficiency, while Sebi is also enhancing internal capabilities through technology, data analytics, and governance improvements to meet the evolving demands of modern financial markets.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.