L&T Finance is leveraging technology and AI to drive business growth and improve efficiency. Key achievements include a 42% jump in Rural Business Finance disbursements, the deployment of Project Cyclops and Project Nostradamus, and the acquisition of a Gold Loans business. The company aims for 20-25% risk-calibrated AUM growth and a RoA of 2.8-3% by Q4FY27. These initiatives demonstrate L&T Finance’s commitment to becoming a tech-first, multi-product retail financier.
Key Business Highlights
L&T Finance reported strong performance driven by technology initiatives and strategic acquisitions:
- Rural Business Finance disbursements increased by 42% year-over-year in October 2025.
- Overall disbursements reached a record ₹8,000 crores in October 2025.
- Urban Finance disbursements grew by 49% year-over-year.
- Gold Loan business stabilized with disbursements of ₹457 crores.
Technological Advancements
L&T Finance has made significant strides in deploying AI-powered solutions:
- Project Cyclops, an AI-based credit engine, is now fully operational for Two-Wheeler, Tractor, and SME businesses.
- Project Nostradamus, an automated portfolio management engine, launched in beta mode in August 2025.
Strategic Initiatives
The company is focused on expanding its reach and enhancing customer experience:
- Scaling up partnerships for disbursements, reaching ₹1,138 crores in the recent quarter.
- Acquiring the Gold Loans business, adding 130 branches and 700 employees.
- Planning to deploy 200 new branches by March 2026.
Cultural Transformation
L&T Finance is fostering a tech-first, execution-oriented culture:
- Implementing technology workshops for non-technology managers.
- Focusing on innovation and failure tolerance.
- Improving diversity ratios.
Future Imperatives
L&T Finance outlined its goals for the next 12-18 months:
- Announcing Lakshya-31 goals in Q1FY27.
- Driving 20-25% risk-calibrated AUM growth.
- Achieving RoA of 2.8-3% by Q4FY27.
- Building a service intelligence layer.
- Developing an AI-based next-generation collection stack.
- Driving credit costs down towards a 2% threshold.
New Product Launches
L&T Finance is expanding its product offerings:
- Gold Loans
- Embedded Finance
- Micro LAP for RBF
- Supply Chain Finance
Enhanced Customer Experience
The company is leveraging technology to improve customer interactions:
- AI-based voice bot integrated into the PLANET app for multilingual support and personalized assistance.
- Partner PLANET app for dealers with personalized dashboards and real-time information.
Improved Credit Underwriting
L&T Finance is using AI to enhance credit decision-making:
- AI-based outbound calling for pre-qualified leads.
- Loan offer pod for maximizing customer lifetime value.
- Advanced credit decisioning engine with 50+ validations.
Collection Efficiency
The company is implementing AI-based solutions to improve collections:
- AI-based full-stack collections engine.
- Enhanced PLANET app with cost-efficient collection channels.
Source: BSE
