L&T Finance, an NBFC offering a range of financial products and services, is on track to be tagged as the best performer in 2025, as the shares have maintained a consistent uptrend through November, despite the broader market witnessing sharp volatility.
In the current year so far, the shares have surged massively by 121%, reaching ₹300 apiece, closing ten out of the last eleven months in the higher zone, also marking it as one of the most sustained rallies for the stock in recent times. The 2025 rally has also put the stock on track for its biggest annual gain since 2012 and has contributed to a 230% rally over the last five years.
The company is aggressively leveraging artificial intelligence to slash credit costs, rapidly expanding its gold loan business, and is confident about the recovery in the microfinance sector, Managing Director and Chief Executive Officer Sudipta Roy told CNBC TV18 in an interview.
Addressing the microfinance (MFI) segment, which constitutes about 26% of the loan book, Roy expressed confidence in its recovery. He noted that L&T Finance’s disbursements have been steady above ₹2,000 crore for several months and that collection efficiency is improving secularly, standing at 99.57% in the previous month.
The company is also making a major push into the gold loan market. From a current book size of ₹1,500 crore, the firm plans aggressive expansion, Roy told CNBC TV18.
Meanwhile, global brokerage firm Citi has reaffirmed its ‘Buy’ rating on L&T Finance, maintaining a target price of ₹330, indicating the brokerage’s confidence in the large-cap financial services company’s growth potential and business prospects.
L&T Finance Q2 2025 Performance
The company recorded its highest-ever profit after tax and retail disbursements in the September quarter. Retail disbursements stood at ₹18,884 crore (up 25% YoY, 7.8% QoQ), primarily led by personal loans and rural business finance. The retail book expanded 18% YoY to ₹1,04,607 crore, while consolidated AUM increased 15% YoY to ₹1,07,096 crore.
To drive growth, L&T Finance is focused on expanding its customer base by deepening penetration in existing segments and broadening its geographic presence.
Following the company’s Q2FY26 performance, domestic brokerage firms, including ICICI Direct Research and Geojit Financial Services, maintained their ‘Buy’ rating on the stock with target prices between ₹300–310 per share.
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