L&T Finance Q4 FY26: Retail scale meets AI-led risk discipline

Q4 FY26 consolidated PAT was 807 crore (27% YoY). Retail disbursements were 24,107 crore (62% YoY). Consolidated RoA was 2.40% and RoE was 11.71%.

FY26 consolidated PAT was 2,981 crore (3,003 crore before one-time labour code impact). Retail disbursements were 83,213 crore (39% YoY). Retail book was 1,19,508 crore (26% YoY) and consolidated book was 1,21,728 crore.

Management outlined Lakshya 2031 goals of 20%+ book growth, credit cost below 2%, RoA of 3.0% to 3.2% and RoE of 16% to 18%.

Management stated it expects AUM growth of over 20%, NIMs plus fees to remain in the 10% to 10.5% range, and credit cost to trend down to 2% to 2.2% by Q4 FY27. It also targets RoA of at least 2.8% by exit Q4 FY27.

Project Cyclops is L&T Finance’s AI-driven underwriting engine. It has been implemented in Two Wheeler Finance (Jan 2025), Farm Equipment Finance (Aug 2025), SME Finance (Sep 2025) and Personal Loans (Dec 2025), with further rollout planned for Home Loans and LAP and Rural Group Loans and MFI.

Project Nostradamus is an AI-driven portfolio management engine. It is fully live in Two Wheeler Finance (Nov 2025) and is planned for Personal Loans in Q1 FY27, Rural Business Finance in Q2 FY27, SME Finance in Q3 FY27 and Farm Equipment Finance in Q4 FY27.

The board approved entering prepaid instruments (wallets and cards) and acting as a Third-Party Application Provider, subject to regulatory approvals. Management stated it expects to operationalize a payments platform by Q2 FY27.