L&T Finance reported its highest-ever annual profit after tax of ₹3,003 crore for FY2026, marking a 14% year-on-year growth. The company concluded its ‘Lakshya 2026’ strategic plan with a robust 98% retailisation rate. Driven by record retail disbursements of ₹24,107 crore in Q4, the firm has now launched its ‘Lakshya 2031’ roadmap, aiming for 20%+ book growth and a return on assets of 3.0% to 3.2% over the next five years.
Record-Breaking Financial Performance
L&T Finance achieved a milestone in FY2026, recording its highest-ever annual profit after tax of ₹3,003 crore. The quarterly profit for Q4FY26 reached ₹807 crore, reflecting a 27% year-on-year increase. This success was powered by record retail disbursements of ₹24,107 crore in the final quarter, contributing to a total retail book size of ₹1,19,508 crore, a 26% growth compared to the previous year.
Strategic Milestones and Tech Integration
The company successfully concluded its ‘Lakshya 2026’ strategic plan, achieving a 98% retailisation level and outperforming its retail book growth target with a 28% CAGR. A significant driver of this performance has been the ‘Project Cyclops’ credit administration framework, which has effectively moderated credit costs to 2.64%. Furthermore, the company’s AI-driven portfolio engine, ‘Project Nostradamus’, is now fully operational in the two-wheeler business and is set for expansion across personal loans and rural business finance in FY2027.
Future Roadmap: Lakshya 2031
Looking ahead, L&T Finance has launched its ‘Lakshya 2031’ strategic plan. The vision is to establish the organization as India’s premier AI-enabled, tech-first retail financier. The ambitious goals for this five-year period include maintaining a book growth CAGR of 20%+, driving credit costs down to 2% or less, and achieving a Return on Assets (RoA) of 3.0% to 3.2%. The management also announced the upcoming launch of a new digital payments platform by Q2FY27 to further diversify revenue and enhance customer acquisition.
Segment Highlights
The company’s diverse portfolio showed strong growth across key segments. Personal Loans saw a remarkable 98% year-on-year growth in quarterly disbursements, while Gold Finance disbursements surged by 97% quarter-on-quarter. With a target to expand its branch network, including the deployment of 400+ new gold loan branches in FY2027, L&T Finance remains committed to sustaining its high-growth trajectory while maintaining a quality-led, risk-calibrated approach.
Source: BSE
