L&T Finance accelerates digital transformation, reports strong growth

L&T Finance Limited is driving significant business acceleration through its digital transformation initiatives and strategic acquisitions, as detailed in its investor presentation dated November 6, 2025. The company reported a 39% year-on-year disbursement growth from October 2024 to October 2025, achieving its highest-ever monthly retail disbursement in October 2025. This growth is underpinned by strong performance across its various finance segments, including Retail Finance (39% growth), Rural Business Finance (42% growth), Farmer Finance (21% growth), Urban Finance (49% growth), and SME Finance (17% growth), alongside the new Gold Loan Finance business.

A key highlight is the scaling of its proprietary AI-powered risk administration stack, "Project Cyclops," which now processes over 1 million lines of code and approximately 1 million underwritten loans. The company also introduced "Project Nostradamus (Beta)" with 13+ algorithms and 200+ banking variables. Digital partnerships have seen substantial growth, with disbursements reaching ₹1,138 Cr in Q2 FY26, leveraging AI/ML-based offer models and 100+ APIs for real-time verification across platforms like PhonePe, CRED, Amazon Pay, and GPay.

The acquisition of a gold loan business introduced a high-yield, low-risk product, expanding the company's footprint with approximately 700 employees and 130 branches, and aiming for 200+ new branches by March 2026. L&T Finance also reported a 19% year-on-year growth in its Retail book, exceeding ₹1 lac Cr, and sustained Return on Assets (RoA) at 2.4% despite market headwinds. The company's customer franchise grew to 27 Mn with a 2 Mn addition over the last 12 months.