Bajaj Finance (BAJFINANCE) investor relations material

Executive summary

• AUM grew 25% year-over-year to ₹441,450 crore, with record 13.5 million loans booked and 4.7 million new customers added in Q1 FY26.

• Consolidated profit after tax rose 22% year-over-year to ₹4,765 crore; customer franchise reached 106.51 million.

• Credit costs remained elevated, especially in MSME and 2 & 3-wheeler segments, prompting restructuring and slower growth in these areas.

• Leadership transition ongoing: resignation of MD, with Rajeev Jain appointed as Vice Chairman and MD until March 2028.

• Digital transformation (FINAI) initiatives began to go live, expected to drive productivity and customer acquisition.

Financial highlights

• Net interest income grew 22% year-over-year to ₹10,227 crore; net total income up 21% to ₹12,610 crore.

• Pre-provisioning operating profit increased 22% to ₹8,487 crore; profit before tax up 21%, profit after tax up 22%.

• Opex to net total income at 32.7%; loan losses and provisions rose 26% to ₹2,120 crore.

• ROE at 19%, ROA at 4.5%; Tier 1 capital at 21.19%, capital adequacy ratio at 21.96%.

• Net NPA at 0.5%, GNPA at 1.03% (up from 0.86% last year).

Outlook and guidance

• FY26 cost of funds expected between 7.60% and 7.65%; deposit contribution to balance sheet may decline to 15–16%.

• NIM expected to expand by 10 bps for the year, with fee income growth guidance at 13–15%.

• Credit cost guidance maintained at 185–195 bps for FY26, with improvement expected from Q3 onwards.

• AUM growth assessment for FY26 held at 20–24%, with more clarity expected after Q2.

• Long-term guidance: AUM growth 25–27%, profit growth 23–24%, GNPA 1.2–1.4%, NNPA 0.4–0.5%, ROA 4.3–4.7%, ROE 19–21%.