With Lakshya 2026 done and dusted, L&T Finance is looking forward to Lakhshya 2031, having already outlined an ambitious five-year roadmap for the company, one that will be centered around acceleration, AI-driven underwriting and credit costs below 2%.
Speaking to NDTV Profit after the company's fourth quarter earnings, L&T Finance's MD & CEO Sudipta Roy explained that Lakhshya 2031 sets four measurable targets: 20%-plus CAGR book growth, credit costs below 2%, ROA of 3 to 3.2%, and ROE of 16 to 18%.
"The franchise which is currently about Rs 1.21 lakh crore, we expect it to get close to Rs 3 lakh crore at the end of the Lakshya 31 franchise," Roy said.
However, the conflict in the Middle East serves as a potential near-term stress for the company, though Roy hasn't witnessed any palpable signs.
"April is going well. The microfinance industry has reasonably mended, two-wheeler momentum is holding strong, tractor sales are quite okay. As of now I do not see any palpable signs," he said, before reaffirming 20%-plus book growth guidance.
Roy went on to add that the company's AI underwriting engine Cyclops is delivering standout results. For a Rs 3,000 crore book acquired between April and July 2025, the 30-days-past-due rate stood at just 2.71% at the 10-month mark, against an industry average of 7.1%. Companion tool Nostradamus monitors live portfolio risk.
"Two districts in India are in yellow and one is in red. The rest are all in green as of now," Roy said.
The L&T Finance MD & CEO talked about credit costs, which are currently at 2.64%. The company's target is to enter the 2 to 2.2% corridor by Q4FY27, with sub 2% coming in FY28-29.
Finally, Roy touched upon AI's cost impact, pointing to collections bot calls at Rs 10-12 per call versus Rs 300 for a human call. "We're looking at about a Rs 30 to 40 crore cost save just in collections this year," he said.
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