L&T Finance: From Underdog to Front Runner

A few months ago, hardly anyone talked about L&T Finance (LTF). The stock was quietly trading near ₹150–160, with investors labeling it a slow mover among NBFCs. Fast forward to today — the stock has nearly doubled, touching new highs near ₹270, and the narrative has changed completely. So, what sparked the turnaround? It began with a clear shift in strategy. Under its “Lakshya 2026” plan, LTF moved from corporate lending to a focused retail finance model — expanding in personal loans, two-wheelers, and rural credit. Then came the big catalysts: A partnership with Google Pay to offer instant personal loans digitally — pushing its loan book growth by over 60%. The acquisition of Paul Merchants’ gold-loan business, adding ₹1,300 crore to its book and giving it a new secured, high-margin vertical. These moves caught the market’s attention. Revenue crossed ₹16,000 crore, profit touched ₹2,600 crore, and investors suddenly saw a scalable, tech-driven NBFC rather than a slow lender. The re-rating followed — the P/E jumped from the teens to around 25–28, shifting LTF from “undervalued” to “fairly valued.” But make no mistake — the story isn’t over. The next chapter depends on execution: maintaining asset quality, expanding digital lending profitably, and unlocking higher ROE. For now, L&T Finance has turned from an overlooked name into a symbol of smart transformation — a story of steady gears finally turning fast.