L&T Finance stock gained 7 percent over two trading days. This surge followed S&P Global Ratings’ upgrade. The agency improved the NBFC’s standalone credit rating by one notch. S&P Global expects LT Finance to keep strong capital levels. These levels should hold for the next 12 to 24 months. The company’s shares reached a new high of ₹216.75.
This marks a 3 percent rise on the BSE. Heavy trading volumes accompanied the increase. The stock surpassed its July 23 high of ₹214.80. The rating upgrade stems from expected improvements in risk-adjusted capital ratios. S&P Global cited fresh capital raising and lower risk weights. These benefits come from reduced economic risk and India’s sovereign upgrade.
The NBFC’s market price has jumped 60 percent in six months. S&P Global predicts India’s economy will grow well. This growth is expected for the next two to three years. India’s monetary policy is also favorable. It helps manage inflation expectations. The agency upgraded India’s rating. L&T Finance’s risk-adjusted capital ratio was 19.7 percent on March 31, 2025. S&P forecasts this ratio at 15 percent to 20 percent. This projection is for the next two years. Improved economic conditions in India will aid LTF. The stable outlook reflects L&T Finance’s group affiliation.
Its ties to Larsen & Toubro support its market standing. This connection also provides better funding access. It helps maintain good capital levels. Analysts expect L&T Finance to lower credit costs. They also anticipate better asset quality in microfinance. New credit systems target prime customer segments. This should improve portfolio quality and lower costs. The company plans for 20 percent loan growth. This could rise to about 25 percent. L&T Finance aims for specific profitability goals.