Please find enclosed
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L&T Finance (LTF) submitted its Q4FY25 and FY25 investor presentation detailing performance against its Lakshya 2026 strategy. FY25 saw highest-ever annual RoA of 2.44% and PAT of ₹2,644 Cr (+14% YoY), with retail book growing 19% YoY to ₹95,180 Cr and retailisation at 97%. Q4FY25 PAT was ₹636 Cr (+15% YoY) with RoA of 2.22%, though NIMs+Fees compressed to 10.15% (from 10.33% in Q3) due to book mix change. The company utilized ₹400 Cr of macro-prudential provisions during the year against heatwave, floods, and election-related rural stress, leaving ₹575 Cr unutilized. Wholesale book shrank 53% YoY to ₹2,582 Cr. WACB remained well-managed at 7.84% despite rising rate environment. The presentation outlines a Gold Loan acquisition (Paul Merchants Finance, ₹1,254 Cr book) expected to close by Q2FY26, plus ongoing digital initiatives (Project Cyclops 2.0, Nostradamus).
Lakshya 2026 targets on track for retail growth (>25% CAGR achieved at 28%) and retailisation (>95% achieved at 97%), but consolidated RoA (2.22% Q4) still trails the 2.8-3% target — management guides opex and credit cost reduction to bridge this gap. Asset quality stable with GS3 at 3.29%, and the Gold Loan entry diversifies revenue mix for shareholders.