L&T Finance has unveiled its strategic roadmap under the Lakshya 2026 initiative, setting clear financial targets aimed at enhancing operational efficiency and profitability. The financial services company has established specific performance benchmarks that demonstrate its commitment to sustainable growth and improved shareholder returns.

Strategic Financial Targets

The company has outlined key performance indicators under its Lakshya 2026 strategic plan:

Return on Assets Focus

L&T Finance has set an ambitious target to achieve a return on assets between 2.80% and 3.00% by the fourth quarter of fiscal year 2027. This ROA target represents the company's strategic focus on optimizing asset utilization and generating enhanced returns from its lending portfolio. The targeted range indicates management's confidence in improving operational efficiency while maintaining prudent risk management practices.

Margin Management Strategy

The company plans to maintain its net interest margin plus fees within a disciplined range of 10.00% to 10.50%. This strategic approach reflects L&T Finance's commitment to balancing competitive pricing with sustainable profitability. The targeted margin range suggests a focus on maintaining healthy spreads while supporting business growth across various lending segments.

Lakshya 2026 Framework

The Lakshya 2026 initiative represents L&T Finance's comprehensive strategic framework designed to drive performance improvements and operational excellence. These financial targets form part of the company's broader vision to strengthen its position in the financial services sector while delivering consistent value to stakeholders through measured growth and enhanced profitability metrics.

L&T Finance Limited announced strong financial performance for the quarter and nine months ended December 31, 2025, demonstrating robust growth across key metrics. The non-banking financial company reported significant improvements in profitability and operational efficiency, with book size expanding to ₹16,671 crores during the reporting period.

Strong Quarterly Performance

The company delivered impressive results for Q3FY26, with consolidated net profit attributable to owners increasing substantially compared to the previous year. Revenue from operations also showed healthy growth, reflecting the company's expanding business operations.

Business Growth and Book Size Expansion

L&T Finance demonstrated strong business expansion with its book size growing to ₹16,671 crores, marking an 11% year-over-year increase and 5% quarter-over-quarter growth. The company benefited from positive GST collections and favorable monsoon conditions that boosted festival demand across its key business segments.

Nine-Month Financial Highlights

For the nine months ended December 31, 2025, L&T Finance maintained its growth trajectory with consistent performance improvements across all major financial parameters.

Exceptional Items Impact

The company reported exceptional items of ₹28.51 crores during the quarter and nine months ended December 31, 2025, related to the implementation of new labour codes. The Government of India consolidated 29 existing labour regulations into four Labour codes effective November 21, 2025, resulting in a one-time material increase in provision for employee benefits. The net impact after tax was ₹21.33 crores.

Earnings Per Share Performance

L&T Finance demonstrated strong earnings per share growth during the reporting period:

Business Expansion and Strategic Initiatives

During the reporting period, L&T Finance strengthened its market position through strategic acquisitions. On June 9, 2025, the company acquired the gold loan business of Paul Merchants Finance Private Limited for a total consideration of approximately ₹711 crores through a slump sale on a going concern basis. The company also continued its employee stock option programs, allotting 27,57,685 equity shares during Q3FY26 and 77,59,525 equity shares for the nine months ended December 31, 2025.