LFT AGM 2026 Transcript

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TRANSCRIPT OF THE EIGHTEENTH ANNUAL GENERAL MEETING OF L&T FINANCE

LIMITED HELD ON FRIDAY, MAY 29, 2026 AT 03:30 P.M. (IST) THROUGH

ELECTRONIC MODE (VIDEO CONFERENCE OR OTHER AUDIO-VISUAL MEANS) AND

CONCLUDED AT 05:20 P.M. (IST).

Mr. S.N. Subrahmanyan, Chairman:

Dear Members,

Good afternoon, all of you, dear shareholders, Board Members, and everybody else present, my colleagues. Good afternoon and a warm welcome to the Eighteenth Annual

General Meeting of L&T Finance Limited, which is held through video conference in accordance with the circulars issued by MCA and SEBI. I thank you for taking time off to join us today.

I am attending the AGM from the registered office of the Company at Mumbai. My fellow

Directors who are attending the AGM from the registered office are:

 Mr. Sudipta Roy, Managing Director and Chief Executive Officer of the Company.

 Mr. R. Shankar Raman, Non-Executive Director of the Company.

 Dr. Rajani R. Gupte, Independent Director and Chairperson of the Nomination and

Remuneration Committee and CSR and Sustainability Committee of the Company is attending the AGM from Pune.

 Ms. Nishi Vasudeva, Independent Director and Chairperson of Stakeholders

Relationship and Customer Protection Committee and Risk Management Committee of the Company is attending the AGM from Mumbai.

 Dr. R. Seetharaman, Independent Director and Chairman of the Audit Committee and

Special Committee for Monitoring and Follow-up of Cases of Frauds of the Company is attending the AGM from Dubai.

 Mr. Dhananjaya Tambe, Independent Director and Chairman of the IT Strategy

Committee of the Company is attending the AGM from Navi Mumbai.

Along with the Directors, we also have the members of the Management Committee of your

Company including Mr. Sachinn Joshi, by the way Mr. Sachinn Joshi has been recommended to be a member of the Board of the Company, subject to regulatory approvals he will be a member of the Board, he is the Chief Financial Officer of the Company, Mr.

Raju Dodti, Chief Operating Officer has also been recommended to become a member of the Board of L&T Finance subject to regulatory approvals he’ll become that, and Ms. Apurva

Rathod, Company Secretary attending the AGM over video conference from Mumbai.

Members who are participating in the AGM over video conference are being reckoned for the purpose of quorum as per regulatory requirements.

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The Company has taken all feasible efforts in accordance with the regulatory requirements, to enable Members to participate through video conference and to vote at the AGM.

Representatives of the Statutory Auditors and Secretarial Auditor of the Company have joined the AGM from their respective locations.

As the requisite quorum to conduct the proceedings of the AGM is present through video conference; I call this AGM to order.

The Integrated Annual Report, the Notice convening the AGM, the unqualified Statutory

Auditors report and the unqualified Secretarial Auditor report have been sent / made available through electronic mode and the same be taken as read.

I am pleased to report that L&T Finance has successfully completed its strategic evolution into a premier, customer-centric retail finance powerhouse, transforming lending through digital intelligence. This transformation marks a defining chapter in your Company’s journey, as it pivots its strengths toward the heart of the Indian economy.

The Annual Report highlights your Company’s steady growth trajectory and core ‘Risk-First,

Tech-First’ philosophy. Marking a pivotal milestone, it celebrates the successful conclusion of Lakshya 2026 while confidently embarking on its next strategic chapter: Lakshya 2031.

Today, my dear shareholders the financial ecosystem in India is setting the global benchmark for access, innovation, and customer engagement. The widespread penetration of UPI, Aadhaar-enabled payment system, and a full range of digital solutions have established a robust interoperative financial network. The sector is also witnessing a paradigm shift as AI and GenAI have become pivotal in driving innovation. I am pleased to note that your Company is at the forefront of leveraging cutting-edge technologies, including

AI applications and data analytics, for enhancing decision-making processes and optimizing customer experience.

Before we move to FY26 performance, as we have concluded Lakshya 2026 and now embarking on Lakshya 2031, let’s see the performance of your Company against the

Lakshya 2026 metrics.

 Your Company successfully transformed to a retail franchise by re-orienting itself to achieve Retailisation of 98% in Q4FY26 against the target of

>95% with the retail book crossing the Rs. 1 lakh crore milestone. This is very significant.

 Against the goal of achieving a retail asset book growth of >25% CAGR over the four-year plan period, your Company has achieved a CAGR of 28%.

 Despite a challenging macroeconomic environment, your Company maintained the consolidated asset quality within the set goals of GS3 <3% and NS3 < 1% by FY26.

Your Company achieved a GS3 of 2.88% and NS3 of 0.96% in Q4FY26.

 Against the target of achieving a consolidated RoA of 2.8% to 3.0% by FY26, despite the prevailing headwinds, your Company reported a RoA of 2.4% in Q4FY26 and

2.37% in FY26. Your Company remains firmly on track and fully committed to achieving a consolidated target of 2.8%–3% in the medium term.

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Let me now cover the highlights of FY26:

Today, your Company stands as one of the market leaders, a top financier in its fulcrum businesses, built carefully and strategically over the years, while rapidly making its mark in new business segments.

For your Company, this past year was not just about weathering uncertain and volatile business environment; it was about seizing opportunities, achieving groundbreaking milestones like highest ever annual retail disbursements, highest ever consolidated annual profit after tax and crossing the Rs. 1.20 lakh crore consolidated book. This was achieved through unwavering commitment, disciplined execution, and by implementing advanced proprietary AI tech stacks built in-house. This includes AI engines like ‘Project Cyclops’ for credit underwriting and ‘Project Nostradamus’ for risk assessment, early warning signals, and portfolio monitoring, thereby helping your Company to reduce credit costs and improve portfolio quality.

Your Company has also worked upon Tech Modernization and Resilience with focus on building operational resilience through observability, hybrid/multi-cloud deployment, and always-on architecture.

Above all, your Company remains a deeply customer-focused NBFC, serving a growing franchise of 2.8 crore+ customer base by enriching the digital customer experience, which is reflected in the strong Net Promoter Scores.

As you are aware and might have read in the newspaper and otherwise, your Company

L&T Finance has recently expanded into gold finance, which we believe is a strategic opportunity. To diversify the product offerings and balance the secured, unsecured asset ratio favorably, your Company completed the acquisition of Paul Merchants' Gold Finance business in June 2025. Within 8 months of acquisition, the Company has added over 200 new branches, doubling its Gold Finance branch network to over 330 branches nationwide.

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Use of Advanced Data and Digital Analytics

Your Company continues to drive sustainable profitability through a strong thrust on productivity enhancement and cost optimization, underpinned by advanced data and digital analytics. It has broadened its customer acquisition funnel and enhanced cross-selling capabilities by deploying futuristic digital architecture and innovations like the 'Loan Offer

Pod'.

The implementation of Project Cyclops and Project Nostradamus has delivered a profound business impact, through superior credit performance and highly resilient credit indicators.

In the Two-Wheeler segment, the Project Cyclops portfolio significantly outperformed industry peers by maintaining a delinquency of 2.8% vis-à-vis 7.1% for the industry, calculated as percentage of 30+ DPD portfolio over a 10 month observation window.

Beyond credit quality, these AI interventions have also driven substantial gains in operational efficiency. Within SME Finance, the combined power of Project Cyclops and the

Project Helios co-pilot drastically reduced underwriting Turnaround Time. Specifically, TAT for Self- Employed Professionals dropped from 21 hours to 14 hours, while the processing time for Self-Employed Non-Professionals was cut from 37 hours to 25 hours, enabling a more agile and responsive lending environment.

Additionally, the digital ecosystem of your Company is designed to simplify customer journeys while leveraging AI to enhance service efficiency and personalization.

PLANET app has been emerging as a powerful digital channel with 2.4 crore+ downloads facilitating end-to-end digital loan journeys and providing free access to credit scores.

The new addition this year was launch of Partner PLANET to offer a complete service suite for the dealer partners, enabling seamless, end-to-end digital journeys, real-time servicing, and enhanced transparency, significantly accelerating digital adoption across segments.

Your Company significantly amplified its brand presence through high-impact integrated marketing campaigns with brand ambassador, Jasprit Bumrah for two businesses. In Two-

Wheeler Finance, a reach of 80% in campaign markets was achieved, resulting in a total spontaneous awareness increase to 38% from 15%. Business Loans achieved a reach of 80% in campaign markets, resulting in a total spontaneous awareness increase to 31% from 12%. The brand association scores for Retail, Digital, and Sustainable were 32% in

FY26.

Your Company’s flagship AI event, ‘RAISE,’ saw record success with 4,500+ attendees and

40+ expert speakers. Furthermore, the ‘Pitch Point’ launch solidified your Company’s commitment to the fintech AI ecosystem.

Further, your Company actively participated in the prestigious India AI Impact Summit 2026.

Its presence at this global forum underscores a commitment to positioning the Company at the vanguard of financial technology.

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Your Company has been successfully certified as a ‘Great Place To Work®’ for the second consecutive year.

It significantly prioritized its Human Capital agenda, focusing on enhancing employee well- being and capability. It is actively building a specialized talent pool in areas like AI, ML,

Credit & Risk, and Engineering. Your Company drove significant capability building initiatives, achieving an average of 38.5 training hours per employee, alongside rolling out strategic programs on agile ways of working, and next-gen leadership grooming.

Driven by a Diversity, Equity & Inclusion focus, women-friendly policies increased female representation from 5.4% in FY25 to 7.4% in FY26.

Your Company has built a powerful and stable team by combining homegrown leaders as well as expertise from outside that has led to the creation of this powerful, steady team.

Further, to strengthen our Board and in recognition of consistent performance and leadership capability, we are pleased to appoint two of our senior executive leaders — Mr.

Sachinn Joshi (CFO) and Mr. Raju Dodti (COO) as the Whole-Time Directors of the

Company, subject to necessary regulatory approvals.

Sustainability and social responsibility remain central to your Company’s long-term value creation and strategic direction. Since embarking on its sustainability journey in FY19, your

Company has steadily strengthened its commitment to responsible growth. In FY26, this commitment was recognized with your Company being rated as the Most Sustainable NBFC by BusinessWorld, while continuing to maintain best-in-class ESG ratings. As a signatory to the UNGC and a member of PCAF, your Company aligns its strategies with globally accepted principles of responsible business conduct and strengthened measuring and management of financed emissions.

Your Company remains firmly on track to achieve carbon neutrality by 2035 and maintain water positive / surplus status. Focused environmental initiatives including rooftop solar pilots across branches, energy audits, enhanced efficiency measures, and green infrastructure adoption reflect a disciplined approach to climate action.

Your Company’s CSR efforts span Digital and Financial Inclusion, Climate Impact

Management, Disaster Management, and Social Inclusion. The flagship ‘Digital Sakhi’ programme has empowered 15 lakh+ community members and nurtured more than 17,500 women entrepreneurs. Through social convergence, linkages exceeding Rs. 240 crore have been facilitated, impacting over 1.1 lakh beneficiaries. During times of crisis, your Company extended relief support to over 1 lakh individuals affected by floods.

As part of the next phase of sustained growth, your Company will continue accelerating transformation. It has chartered its growth plan with focus on:

 Positioning as the ‘Premier AI-enabled retail BFSI institution in India’ by accelerating innovation velocity

 Building and maintaining cycle-resilient portfolios with predictable risk amplitude variation through credit cycles

 Achieving and maintaining market leadership across various products

 Building and leveraging cross-sell momentum through AI-enabled cross-sell and service platform

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 Unlocking opex and productivity gains by leveraging technology and operational streamlining

Lakshya 2031 goals:

 Loan book growth of 20%+

 Credit costs down to a level of 2% or less

 RoA in the range of 3%–3.2%

 RoE in the range of 16%-18%

Before I end, my dear shareholders I wish to express my deepest gratitude to our board members for their visionary guidance and to our stakeholders, especially employees, for your steadfast support.

As your Company navigates the road ahead, it remains deeply committed to its fiduciary duty of generating sustainable value and securing long-term growth for all who have invested their confidence in us.

I will now request the Company Secretary to brief the Members on certain points relating to the AGM proceedings.

Ms. Apurva Rathod, Company Secretary:

Thank you, Sir.

 The statement annexed to the Notice in connection with the special business contains the objectives for which the resolutions are proposed to be passed. The floor will be opened for any questions by Members after all the resolutions are tabled.

 All speaker Members joining the AGM will by default be placed on the mute mode and during the question-answer session, upon announcement of the name by the Chairman, the speaker Member will be put on the unmute mode. If a speaker is unable to speak due to connectivity issues, the name of such speaker Member shall be announced once again at the end i.e., once all the other Members who have registered to speak have finished speaking.

 For inspection of documents/ registers required to be made available during the AGM,

Members are requested to write to the Company at [email protected] and the documents/ registers will be made available electronically.

 As the AGM is held through video conference, the requirement for appointment of proxies is not applicable and therefore the proxy register is not available for inspection.

 In accordance with the regulatory requirements, the facility to vote on the business items to be transacted at the AGM by electronic means was provided through remote e-voting, from Tuesday, May 26, 2026 from 9:30 a.m. (IST) to Thursday, May 28, 2026 until 5:00 p.m. (IST).

 Members who have not voted through remote e-voting can vote using the e-voting option, made available by CDSL.

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 The Company has appointed Mr. S. N. Ananthasubramanian, Practicing Company

Secretary, as the scrutinizer for scrutinizing the e-voting process.

 The results of the voting on resolutions will be declared within 2 working days based on the scrutinizer’s report and the same will also be displayed on the website of the

Company and CDSL post intimation to the stock exchanges.

 For any technical support in connection with the AGM, Members may contact the helpline number mentioned in the Notice of the AGM.

Now, I handover the proceedings to the Chairman.

Mr. S.N. Subrahmanyan, Chairman:

With the permission of the Members, I will now commence transacting the business contained in the Notice dated April 24, 2026 by calling the brief description of the resolutions.

Resolution No. 1:

To consider and adopt the audited standalone financial statements of the Company together with the report of the Board of Directors and the Auditors thereon for the financial year ended March 31, 2026 and the audited consolidated financial statements of the Company together with the report of the Auditors thereon for the financial year ended March 31, 2026.

Resolution No. 2:

To declare a dividend of Rs. 2.75 per share on the equity shares of face value of Rs.10 each.

The next resolution pertains to my re-appointment on retirement by rotation as per requirements under the Companies Act 2013 and therefore, I request Mr. R. Shankar

Raman to chair the Meeting for the next resolution.

Mr. R. Shankar Raman, Non-Executive Director:

Thank you Chairman and good afternoon shareholders.

Resolution No. 3:

To appoint a director in place of Mr. S. N. Subrahmanyan, who retires by rotation, and being eligible, offers himself for re-appointment.

I, now request Mr. S. N. Subrahmanyan to chair the Meeting.

Mr. S.N. Subrahmanyan, Chairman:

Thank you, Mr. Shankar Raman

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Resolution No. 4:

Amendment to the authorised preference share capital in the Memorandum of Association of the Company.

In order to meet the long-term growth plans of the Company and in line with the Lakshya

2031 strategy, the Company would require equity capital and Tier I or Tier II capital infusion.

As a means of bridge financing and also as an additional fund-raising avenue, the Company may consider raising funds through issuance of instruments falling under Tier II capital which may be raised inter-alia either in the form of subordinated bonds or preference shares.

In light of the aforesaid and to align with the SEBI guidelines with respect to issuance on private placement basis, the face value of the authorized preference share capital is proposed to be amended.

Resolution No. 5:

Issuance of Cumulative Compulsorily Redeemable Non-Convertible Preference Shares by way of public offer or on a private placement basis.

To facilitate fund raising, it is proposed to issue preference shares either by the way of a public offer or on a private placement basis in one or more tranches.

The e-voting window shall now be activated for Members to vote during the AGM. Members are requested to vote in accordance with instructions specified in the notice of the AGM.

Members who have registered themselves as speakers may now ask questions concerning the Integrated Annual Report. I request the speaker not to repeat the questions which have already been asked and to confine the speech to matters relating to the Integrated Annual

Report up to a maximum period of three minutes.

Before I go to the questions and request the respective shareholders to ask their questions,

I would like to once again reiterate the good performance of L&T finance.

I would like to give you some broad data. The AUM over the last five years had moved from

Rs. 88,000 crores to Rs. 1,21,728 crores resulting in a CAGR of 8%. In FY2025-26 it has moved from Rs. 97,762 crores to Rs. 1,21,728 crores, which is a growth of 25%. This is in spite of winding down the wholesale finance business.

The retail AUM has moved from Rs. 45,086 crores to Rs. 1,19,508 crores, which is a CAGR of 28% during the last five years and in FY2025-26 from Rs. 95,180 crores to Rs. 1,19,508 crores which is a growth of 26 %.

The total net income of the Company has moved from Rs. 6,896 crores to Rs. 11,201 crores, which is a CAGR of 13%. In FY2025-26, it has moved from Rs. 9,787 crores to Rs. 11,201 crores which is a growth of 14%. The profit after tax has moved from Rs. 1,073 crores to

Rs. 3,003 crores, which is a CAGR of 29% during the last five years. From FY2025-26 it has moved from Rs. 2,644 crores to Rs. 3,003 crores, which is a growth of 14 % and this is

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without the impact of labour code. The net interest margin plus fees, which is an important measure of any finance company has moved from 7.84% to 10.33%. The return on assets has moved from 1.04% to 2.39% and the return on equity has moved from 5.54% to nearly

11.25%. The management led by Sudipta, our Managing Director and CEO, has done a phenomenal job over the last two years and before the shareholders ask their questions, I just wanted to place it on record the excellent work done by Sudipta and his team.

Now my dear shareholders we’ll go on to the question answer session:

Speaker No. 1: Lekha Satish Shah

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Mr. S.N. Subrahmanyan, Chairman:

Lekha ji, to answer your question, you are very thorough, very detailed as usual, but just to answer your question, because of the war, we don't see any immediate credit impact. As much as we can see, we don't see any immediate worsening of the credit parameters or portfolio deterioration across our business. However, war is a war, and it is not very far away from us. As you are aware, the crude prices have gone up. The gas and crude prices are pretty high today, and if the war does not end soon, it will definitely affect the economy, number one.

Number two, India imports a lot of urea for its crop growing purposes and the urea predominantly comes from Middle East, and right now the ships are not allowed to pass through the Strait of Hormuz, so if the fertilizer supply gets affected, with the monsoon approaching and all the crops to be sown, there will be some rural issues coming up if that is the case. Therefore, it is better to be cautious at this stage. So at the moment, keeping the situation in view, across the group and soon in L&T finance also we have embarked on a cost conservation measures as we have given guidance to all the staff through the management to be careful on travel, to use video, to spend less and we are cutting expenditure on consultants and other measures, as it is required to be a little prudent and careful during this particular season. The Company's balance sheet is very strong, P/L is very good, but at the same time, when things are not sounding very good it is better to be cautious and that's what we are wanting to do.

Lekha ji to answer your second question on the strategic plan, as I already mentioned, we hope to grow loan book by ~20%. We hope to bring down our credit cost to less than 2%.

Our return on assets will be in the region of 3 to 3.2% by 2031, and our return on equity should be in the region of 16 to 18% by 2031. That is what we are planning with every effort and with the blessings of God and great shareholders like you, hopefully that will be possible.

Thank you.

Speaker No. 2: Kaushik Narendra Shahukar

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appropriate, and if there's any doubt, we'll come back to you and take more suggestions and take it forward. Thank you very, very much, really nice of you.

Next shareholder Manoj Kumar Gupta.

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Mr. S.N. Subrahmanyan, Chairman:

Manoj ji, we will definitely meet.

To answer your questions, we entered the gold loan business because it is a secured lending business considering that a significant portion of the Company’s portfolio consisted of unsecured lending. As we transitioned from wholesale lending to a more retail-focused model, we felt it was important to maintain a balanced portfolio rather than being overly dependent on unsecured loans.

The Company already has experience in secured lending through its home loan business, and therefore entering the gold loan segment was a logical and strategic step. The

Company is not expanding blindly in the gold loan business. Our approach is measured, calibrated, and to ensure the accuracy and authenticity of gold valuation, we employ scientific methods based on specific gravity and density testing, supported by advanced technology and AI-enabled tools. Shareholders can be assured that we will grow this

Company and business responsibly and prudently, just as cautiously L&T has grown.

As far as education loans are concerned, the Company will take a step-by-step approach.

The Company evaluates every new business opportunity carefully before entering it as each segment requires specialized expertise and dedicated management focus.

With regard to the appointment of a brand ambassador, the Company’s decision to engage

Jasprit Bumrah, one of India’s leading fast bowlers, has proven to be highly beneficial. His association with the brand has significantly enhanced the Company’s visibility, strengthened brand recognition, and contributed positively to the growth of the business. At the same time, your suggestion of engaging Para Olympic medallists is a valuable one. Such an association could help support these outstanding athletes while also reflecting the

Company’s commitment to inclusion and social responsibility. We will certainly keep this in mind. While branding plays an important role, the Company through other ways also contributes to society through several other initiatives that create a positive impact on people’s lives.

Finance company giving bonus is not the right thing currently. As you are aware, the financial services industry went through a challenging phase following the IL&FS crisis, and our wholesale lending portfolio was significantly impacted. The Company took the necessary decision to exit the wholesale lending business and transform itself into a retail- focused financial institution. Today, the Company is stable and growing steadily. At this stage, expanding the business and delivering on our strategic objectives is the right priority.

The continued support of committed shareholders like you gives us confidence as we move forward. Let us first see how the Company performs and progresses towards achieving the goals of Lakshya 2031. As the business matures and creates sustained value, we can certainly evaluate a bonus issue at the appropriate time.

Competition is inevitable in a large and dynamic economy like India. Rather than being concerned about competition, our focus is on staying ahead through innovation, technology, and superior execution. This is precisely why we have invested significantly in digital transformation. As I mentioned in my speech, platforms such as Cyclops, Nostradamus, and the PLANET App are helping us enhance efficiency, customer engagement, strengthen

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transparency, and make better business decisions. The Company uses many digital tools and stays ahead in the competition. We are already among the leading players in our key segments, and our aspiration is to be at the forefront of every business we operate in over the next five years.

As a long-term shareholder, I would encourage you to continue believing in the Company's journey. The Company's share price has appreciated significantly with Rs. 60 in the beginning to Rs. 290 and it will keep rising. Have faith in the Company we will take the

Company ahead under the leadership of Mr. Sudipta Roy. Everything will be great and let us be positive about it. We look forward to expanding our presence in West Bengal as new opportunities emerge.

Thank you, sir.

Mr. Asok Subrahmanyam

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your last AGM that happened on June 03, 2025. One of the shareholders requested for a rights issue and you have made a small statement that why you want rights, you go into market and buy. So today also I was requesting for similar statement from you, but before that you already said. As the saying in Sanskrit Kalo Subramanaiya and you are

Subramanaiya, whatever you say, the market takes it in a very spiralling effect. That's why we are on a 65% profit in comparison to the last AGM and today. Congratulations.

I had an opportunity to speak to your Company Secretary also and so I will just touch upon little efforts by L&T Finance on the CSR front. As a CSR qualified professional, I am more interested to know, so I am glad to see that you have been associated with climate impact management, disaster management, social inclusion and the digital Sakhi and other aspects. I would like to know much more details into it so that I can also contribute. I've already had a detailed discussion with her and with your permission I'll be approaching her.

In the same aspect, I find that the Rs. 31 crores has been shown as the spend in a CSR, but the list when you make the aspirational district wise, the maximum what I saw was around Rs. 1 crore in West Bengal which is in Murshidabad.

Okay, now that the earliest shareholder has spoken that the West Bengal has opened up, so I think you can approach there through a strategic CSR for a better business. Similarly, maybe or may be not the fruit is not ripe and still you can try for Tamil Nadu also because there is a regime change here also from the age-old concepts. Another business strategic opportunity which I was looking at is, considering the fuel prices and the demand for energy and the energy escalations, the conversion of two-wheelers into e-vehicles especially in rural area and other areas is going to be a big business.

So, my thought process was that why doesn’t L&T Finance give a small kind of a discounted offer for people who convert from conventional fuel into two-wheeler or into e-vehicle, maybe through a campaign, with the scale probably we can offshoot that particular discount.

That's my thought process and maybe your team will work further on it.

Then I look at considering the energy facts as you rightly said. There are two- three alarming trends which I observed while reading this Annual Report. In page 370, considering the principle six of BRSR. The total energy consumption is on a higher trend. It is going from

28,302 GJ in FY2025-26 to 18,242 GJ in FY2024-25 with an increase of GJ/ FTE going from 0.79 to 0.92. This is one area probably you can look at it and also the non-hazardous waste has gone up from 242 metric tonne to 763 metric tonne which also could be looked at it.

Now coming to look page number 373, the scope one emissions, I observed that the scope one emission for last year, FY2024-25 was 386 fractional metrics of CO2 equivalent and this year it is reported as 63.78. If so, it's a significant reduction and if that is true, it has not been greatly highlighted in an Annual Report, so this gives me an iota of doubt to me whether the figure has been wrong or something. You may please check it out.

Another thing what I would like to say is that last year in the AGM, I raised two points. That is about internal carbon pricing. I am glad to see that you have said that there you have planned to incorporate ICP into your strategic decision making as stated in page 301.

Another observation I gave was about giving some QR code particular for CSR project so that we can scan on it and get into much details. So, there is enough scope for to give more

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aspects of CSR activities which you are doing in the organization by way of covering in the

Annual Report. Once again, I thank you very much sir, for giving me an opportunity to speak in this AGM. Thanks for your valuable time and specific thanks to the entire Secretarial department for accommodating me and all for the interactions. Looking forward to any service I can give to the organization, I am ready at your service. Thank you very much.

Mr. S.N. Subrahmanyan, Chairman:

Asok, thank you very much for some of your suggestions, it is very interesting that you have taken time to go through the Annual Report and be very specific about certain things. For your kind information Apurva who is the Company Secretary is also in charge of CSR. Since you are already in communication with her, you can continue to communicate with her to understand more about our CSR activities. She does a wonderful job there and she will fill you up with every detail that we are on to, and we will see how to take that forward. For

West Bengal and Tami Nadu, your comments are noted sir.

Fuel prices, especially EV vehicles, we have started giving specific loans into EV two- wheelers. We do give a special rate there. I don't want to call it a discount or incentive fee, but we have to be careful about the market competition, but we are there and we look at your views in a serious manner.

Energy consumption has gone up due to the huge increase in branches. That is the reason why energy consumption has gone up especially after acquiring the gold loan business. We have expanded the business as you saw in nearly 350 branches, and that means more lights, more fans, more ACs, etc. and that's why energy consumption has gone up, but it will stabilize after some time.

QR code is an interesting idea sir, let’s see how to implement that and if it is something feasible, we will do that.

Thank you very much, Mr. Asok.

Santosh Kumar Saraf

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Mr. S.N. Subrahmanyan, Chairman:

Very nice to see you. The shirt is of a beautiful color.

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special surveys and whatever the Company can do. Necessary actions are taken by the

Company and hopefully such thing should not happen in the organisation.

Thank you very much, Sir.

Next Speaker Mr. K Bharat Raj

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Sir, what will the impact in the first quarter be due to the geopolitics and the war? and I don't know if this monsoon season will also support us, so what do you think how will the business perform sir?

Finally, Mr. Roy don't misunderstand me. In India, in the banks a lot of fraud is happening and in gold loan business employees are doing fraud by taking personal loans and misusing the employee’s data. What are the precautions you are taking Mr. Roy? Subrahmanyan Sir, how do you tackle this issue sir? Are you using the AI tool? Recently some companies are using the AI tools. How are we benefiting through the AI tools sir? That is only my question sir.

Subrahmanyan sir, we met in Bangalore sir. When you were taking over LTI Mindtree, I was there to support you sir. I met you personally sir. So, after a long way journey, you become a Chairman of my Company. I hope that God gives you good health and you should live a hundred years. Last year, in Diwali also I did not get dry fruits. This year think about it Sir and send Diwali sweets sir with love and affection sir. Once again, my best wishes, take care. God bless you all. I am Bharat K, signing off from Hyderabad.

Mr. S.N. Subrahmanyan, Chairman:

Okay, thank you Bharat Raj ji, when you said states are missing, I got worried whether in the map we have missed the states. We have shown all the states correctly and to the extent possible, properly. Now, we have to expand as you know, the Company is still a young Company and more so in the retail is a very, very young Company, just three years old, in that sense. So, we will expand cautiously and carefully. Let us first stabilize in the states that we are in as whenever there's elections and other major occasions, there are problems we have to do it carefully. We are already in 18 states and many union territories.

Our idea is to cover full India, but we will do it over a period of time. The Company is growing well, let us support the management and let us leave it to their decision to see how to go about with which state.

Gold loans sir, it was shareholders like you and particularly like you who encourage us to go for the gold loan business. I really appreciate. Thank you very, very much for that. If there's any other good ideas sir, please do let us know and we will look at it very, very seriously.

Your idea on Bumrah and woman cricketers is noted sir. We have got a star cricketer for the first time, and this has gone well. If the idea is good, we'll take it forward sir.

As I mentioned, sir, quarter one appears to be ok, but we have to wait and watch and see.

There is one more month left, so far so good. If the war comes to an end and hopefully monsoon is sort of decent, we should be ok. There are news in the television channels and then internet media that some kind of memorandum of understanding has been arrived at between the warring parties and if that gets concluded it is good news for all of us, so let us hope for the best and pray to God that better sensible situations prevail and things are for the better.

On the fraud issue, I told you that we have extensively invested in digital tools like Cyclops,

Nostradamus, Planet app and such. The management is fully aware of it. There's a separate

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division of a Chief Risk Officer and with very, very highly trained people such as data scientists who are available to look at such matters within the Company. If there is any issue like, we act on that very, veryp fast. So far so good sir, and we will continue to maintain a vigil on the same. Rest assured you sir, Apurva will send you good dry fruits as any time possible before the festival season and hope you and your family enjoy that and feel satisfied being a great shareholder of L&T Finance.

Thank you, sir.

Prakashini Ganesh Shenoy

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Mr. Sudipta Roy, Managing Director and Chief Executive Officer:

Second thing about the question relating to credit cost i.e. bad loans, the Net Stage 3 assets were approximately about 0.96% and total Net Stage 3 was Rs. 1,148 crores and during the Lakshya period this has come down,

About the physical shareholders, the Company is trying to help the physical shareholders to the maximum. The Company has only 8 physical shareholders who hold shares in physical and non dematted form. The Corporate Secretarial team is in touch with them, some of the shareholders have dematted the shares and if any shareholder is facing any problem they can contact the Secretarial team. We will help in any possible way to make sure that the interactions with us and conduct of affairs related to us is very, very smooth.

Mr. S.N. Subrahmanyan, Chairman:

Next speaker Mr. Sarvjeet Singh

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Mr. S.N. Subrahmanyan, Chairman:

Sir, Good afternoon, how are you, Mr. Tamal Kumar Majumder? Good to see you. How are you?

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Sir, it is unique to note that out of dividend income of Rs. 150.02 crores, it is on page 483,

L&T Financial Consultants Limited in which our Company has an investment of Rs. 162.75 crores paid Rs. 149.85 crores out of Rs. 150.02 crore. So, whether the remaining Rs. 0.17 crores received from Mutual Fund investment of Rs. 751.32 crores? and what type of business L&T Financial Consulting is doing?

It is noted from page 572 that the borrowing from banks and financial institutions increased from Rs. 51,817 crores to Rs. 65,318 crores. Ones raised from NCDs every month nearly remains a stagnant. What is the average rate of interest paid to banks and financial institutions as well as for NCDs during FY26? The Company has an external commercial borrowings balance of Rs. 7,379 crores as of March 31, 2026.

Taking into account rise of US dollar against rupee as well as increase in the cost of hedging is really a cause of concern for all of us. What steps the management has taken to safeguard the interest of the Company and its shareholders in this regard in order to check the abnormal increase? Please share your thoughts.

I have three other questions sir. The management is seeking our approval for amendment to the authorized share capital in the Memorandum of Association of the Company. Whether the management is thinking of issuing preference shares during the current year? please share your thoughts.

The Company has a massive free reserve balance of Rs. 19,734.364 crores as on March

31, 2026. If we divide it by the number of equity shares issued, then it comes to free reserve balance of Rs. 78.80 per equity share of Rs. 10 each. You already mentioned that you are not going to issue bonus shares. Whether the management has any thinking of sharing a portion of this free reserve as a special dividend to the shareholders in the coming months.

I also want to know management's thinking about sub-division of shares.

Lastly, it is noted that the Company served 2,00,000+ villages and 450+ cities and towns.

Its digital disbursements and collections were Rs. 25,906 crores and Rs. 5,750 crores respectively during FY26. What is the target during FY27 in this regard?

Thank you all and especially thank you for allowing me to complete my note. Thank you all.

Mr. S.N. Subrahmanyan, Chairman:

Mr. Tamal Kumar, wonderful! To read 745 pages and like a proper financial man to go through every page and to ask so many questions, mind boggling. I really have to say hats off to you, but most important Tamal Kumar ji take care of your health as that is more important than anything else for us.

Few questions I will answer, then I'll request my colleague Sudipta Roy, our Managing

Director to answer the rest of the questions. On gold loan, we took over a healthy business, but as you know, we are expanding the business from 130 branches to 300 branches and maybe by the end of the year 700 branches is a big expansion. Therefore, when you expand the business, you're spending money on opening branches, recruiting people, employing people, putting special equipment, safes, etc. the profit will be a little negligible, but this is a business for the future, it's a secured business. Rest assured in one or two years this

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business will be a very, very profitable business within the Company. It is showing profit even with all this, but it will be a very, very profitable business. The rest of the questions I'll request my colleague to answer, Sudipta.

Mr. Sudipta Roy, Managing Director and Chief Executive Officer:

Yes, thank you, sir.

Mr. Majumdar, on your question on brand license fee, typically the formula that we use is

0.15% of standalone assets or 5% of PAT, whichever is less is a brand license fee that is paid, for the use of the L&T brand and it is transparently disclosed in our annual profit & loss and balance sheet account.

You had a question on L&T Financial Consultants as well as on the L&T Infra Investment, I will request our CFO to take that question.

Mr. Sachinn Joshi, Chief Financial Officer:

So, for L&T Financial Consultant, you're right the 0.17 crores that you mentioned it is out of the investments in mutual fund and L&T Infra Investment Partners, basically it's a fund and the 45% is actually units which have been issued to various other financial institutions. As far as your borrowings question is concerned from Rs. 54,000 crores to Rs. 65,000 crores, this year, the whole focus was on ensuring that the mobilizations were done through PSL borrowings through banks and hence the market borrowing, being slightly at higher cost.

We avoided going back to the markets and borrowing directly through issuance of bonds.

On the ECB front, yeah, we have been procuring funds through various financial institutions, but this year sir, you would have read in the balance sheet that we have also taken an international rating which will be utilized in the next financial year going forward to raise funds through the foreign currency borrowings.

I hope we have answered all the questions.

Mr. S.N. Subrahmanyan, Chairman:

Okay, thank you. Next speaker Mr. Rishi Kesh Chopra

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Mr. S.N. Subrahmanyan, Chairman:

How are you?

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shareholders. I have few questions. While the Company has successfully achieved several

Lakshya 2026 goals, the return on assets i.e., ROA achieved during the year stands at

2.37% against the target range of 2.80% – 3.0% with a shortfall of around 0.63%. I request the management to kindly comment on this and give reason for not achieving the ROA target despite meeting other Lakshya objectives.

My next question, impairment on financial instrument is an important metric for any NBFC.

During the reporting period, the Company has charged Rs. 2,184 crores to the profit & loss account towards impairment and financial instruments, which works out to around 2.54% of average loan book and indicates moderate stress levels. I request the management to comment on the steps being taken to reduce impairment ratio or otherwise call a credit cost ratio to 2% going forward.

My another question, the number of fraud cases committed against the Company has increased significantly from 25 in FY2024-25 to 165 during the reporting period. Despite the

Company having robust internal control systems and the AI driven process, I request the management to explain the reason for this increase and the corrective measures being taken to strengthen the fraud prevention and detection mechanism and my last question, how the acquisition of gold loan business was funded?

Thanks for the opportunity given and a special thanks to Mr. Mangesh from Secretarial department. Take care. Thank you very much Sir.

Mr. S.N. Subrahmanyan, Chairman:

Mr. Nachiappan, just to answer your questions, the return on assets as you very rightly pointed out is 2.39% and last year it was 2.44%. It would have been higher, but you know the new labour code was introduced by the Government of India across all the businesses in India, including all L&T businesses and we had to implement it. Therefore the profit which was about Rs. 3,100 crores got suppressed to about Rs. 2,900 crores. This is the reason why the return on assets have slightly come down, but rest assured all measures are taken to achieve better return on assets in near future to get back to what is required. If you see your strategy plan which I did read out in the beginning of this session as part of Chairman speech, our aim is to get the return on assets between 3 and 3.2% before the end of the plan that is Laksya 2031, and we'll do all that is required to make you as a shareholder very proud.

The impairment of finances is a cost of business. As you say in finance business it is sometimes requiredwhen you're doing business across two crore odd peoplethere's an wholesalee portfolio which is still little bit with us and if we are not able to succeed in this, we have to sometimes impair some of the cost for the business. We'll continue to do that as and when is required and immediately so that it does not become a burden on the balance sheet.

So, fraud cases exist. We are not able to do away with it. We introduced many many tools, many methods, many scientific ways of looking at it. We are putting people behind people, all that. At the same time, like an intelligent person does certain good things, there are some unnecessarily extremely intelligent people doing some bad things, right? This is part of life.

So, we have to keep on improving ourselves. We have to improve cyber security. We have

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to improve the methods of reducing the fraud. The full effort is that it is coming down with all the digital and AI tools that we have. We will continue to see that fraud cases come down.

Gold loan service is funded purely through internal resources. The Company has got sufficient resources; it's a well capitalized company. Its borrowings are also well under the limits prescribed by Reserve Bank of India, so the Company funded the goal loan business purely through its internal resources. Nachiappan as usual, thank you very much for being present as a shareholder and for the lovely questions that you always ask. Thank you.

Next shareholder Satish Jayantilal Shah

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Mr. S.N. Subrahmanyan, Chairman:

I am okay. Thank you very much. How are you?

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We hope that the next AGM will be conducted in a hybrid mode so that as the previous speaker mentioned, someone came all the way from Kolkata to give you a bouquet but couldn't meet you, we can definitely meet you at the AGM, Chairman Saheb. We are locals, so we too hope to meet you in person. Therefore, please make the next AGM hybrid so that the entire Board team can meet us in person, and our Apurva Madam can also meet us in person, giving us an opportunity to interact with her as well. Please keep this in mind and make the next AGM hybrid. I hope you will definitely consider this point.

Mr. Bharat Shah would also continue in the same call.

Mr. S.N. Subrahmanyan, Chairman:

Thank you. Thank you Smita ji, so lovely to hear your voice and words, so lovely of you, so nice of you. Haan ji Bharat ji.

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Company does it through virtual mode. The Prime Minister has also said to be very careful due to problems in the world and hence the Company also conducted this AGM virtually.

Thank you very much. Both of you.

Next speaker Mrs. Swaran Lata

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Mr. S.N. Subrahmanyan, Chairman:

Ms. Hansa Galada

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compliance is good. Even though I applied late, they allowed me to speak. They send me the Annual Report copy; the copy is very great.

Certainly, two points I will cover regarding the corruption policy and sexual harassment case. Some people are taking this sexual harassment policy, but 25- 30 years back when

SEBI has not regulated. So please narrate our corruption policy and sexual harassment policy, tackling that. Thank you.

Best wishes from Hiranand Kotwani. I am now in Chandrapur.

Mr. S.N. Subrahmanyan, Chairman:

So, let's be very clear about the policy of the entire group and L&T finance. If there is a case of sexual harassment or if there is a case of misappropriation and in sense or otherwise if it is known to be very much present and if it is proved, the person is immediately terminated from the services of the Company, no questions asked, nothing. That is the policy of the

Company, that will be the policy of the Company and will enforce it very, very strictly. If there are any cases like this, it will be handled through the POSH committee or the misappropriation fraud committee. An immediate action will be taken. Nobody will be spared whatever level he is, wherever he is. So, rest assured about it, the Company follows very strict governance and clear policies on such matters. I hope it reassures you that we are a

Company with a difference. We are Larsen and Toubro Finance. We are part of the Larsen and Toubro group, we have a name, we have a brand, we have created an image for ourselves, and that is what we will be. That is what we were, that's what we are, and that's what we will be. Thank you, sir.

Next speaker Mr. Dinesh Gopaldas Bhatia.

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Mr. S.N. Subrahmanyan, Chairman:

Is there any other speaker who has missed out because of connection who's now available?

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Mr. S.N. Subrahmanyan, Chairman:

Mr. Hariram Chaudhary

Mr. Hariram Chaudhary

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Mr. S.N. Subrahmanyan, Chairman:

Mr. Aspi, How are you?

Aspi Bhesania, Sir?