L&T Finance projects loan growth to exceed 20%, driven by aggressive personal loan expansion and AI-based cost control. The company’s management, led by CEO Sudipta Roy, is integrating artificial intelligence into underwriting and collection systems to lower credit costs, aiming to improve its operating expense ratio by 30 to 40 basis points over the next three to four years. Digital partnerships with Google Pay, PhonePe, CRED, and Amazon have accelerated loan disbursements, with management expecting strong retail growth momentum for at least the next two quarters. However, in the recent April-June quarter, higher borrowing costs caused a 25 basis point compression in net interest margins, offset by non-interest income from insurance distribution, SME collections, and liquidity management. Risks include unpredictable monsoon patterns and geopolitical tensions in West Asia that could affect demand and credit quality. With a market capitalization of approximately ₹81,534 crore, the stock has risen more than 58% over the past year.