Key Highlights L&T Finance unveiled its long-term strategy, Lakshya 2031, targeting sustainable growth, improved profitability, and stronger asset quality. Growth Targets • Targets 20%+ loan book growth, credit cost below 2%, and higher Return on Assets (RoA) and Return on Equity (RoE) by 2031. Business Performance • Loan book stood at ₹1,29,634 Crore, up 27% YoY. • Disbursements increased to ₹23,852 Crore, up 36% YoY. • Profit After Tax (PAT) rose 29% YoY to ₹902 Crore. • RoA improved to 2.48%, while RoE increased to 12.71%. • Credit cost declined to 2.54%, with a long-term target of below 2%. Business & Technology • Rural business contributes 39% of the loan book, while urban finance accounts for 61%. • The company operates through 2,800+ sourcing points and 666+ branches across India. • Maintains AAA domestic credit rating along with BBB/BBB- international ratings. • Proprietary AI platforms CYCLOPS and NOSTRADAMUS support underwriting, credit assessment, and risk management. Market Impact Impact: Positive The long-term growth roadmap, strong loan growth, improving profitability, and AI-driven risk management reinforce L&T Finance's confidence in delivering sustainable growth over the coming years. Learning Outcome A clear long-term strategy supported by healthy loan growth, improving profitability, disciplined credit costs, and technology-led underwriting can strengthen an NBFC's competitive position and enhance long-term shareholder value.

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