Bajaj Finance (BAJFINANCE) investor relations material

Executive summary

• Q1 FY27 delivered 28% profit growth to ₹6,081 crore, AUM up 24% to ₹546,944 crore, and 5.10 million new customers added, with record AUM addition and improved asset quality.

• 16.13 million new loans booked (up 20% YoY), customer franchise reached 124.43 million, and net interest income rose 23% to ₹12,571 crore.

• ROE at 20.4% and ROA at 4.7%, both higher YoY, with broad-based growth across all business segments.

• Credit quality improved: GNPA at 0.96%, NNPA at 0.39%, and provisioning coverage ratio at 60%.

• Significant investments in AI and digital transformation, with 27 bots live and 400 AI unit employees.

Financial highlights

• Net interest income grew 23% YoY to ₹12,571 crore; net total income up 22% to ₹15,224 crore.

• AUM addition of INR 37,000 crore in Q1; deposit book at ₹68,534 crore, now 15% of consolidated borrowings.

• OPEX to NTI at 33.1%-33.4%, marginally higher YoY, reflecting investments and labor code impact.

• Loan losses and provisions at ₹1,993 crore, including a prudent macro provision of ₹296 crore.

• Capital adequacy ratio at 20.90%, Tier-1 at 20.01%.

Outlook and guidance

• Management remains optimistic but will wait another quarter before revising FY27 guidance; current AUM growth guidance is 22%-25%.

• FY27 guidance: 60–62 million new loans, 18–20 million new customers, 150–175 new locations, and 2,700–2,800 Gold Loan branches.

• OPEX to NTI expected to improve by 25–40 bps for FY27.

• Credit cost guidance may be revised lower if current trends persist.

• MSME segment expected to return to growth by Q3.