Bajaj Finserv (BAJAJFINSV) investor relations material

Executive summary

• Consolidated total income for Q1 FY2027 rose 19% year-over-year to ₹42,037 crore, with profit after tax up 18% to ₹6,297 crore and profit attributable to owners up 12.3% to ₹3,132 crore.

• All major subsidiaries delivered strong growth, with Bajaj Finance, Bajaj Housing Finance, and Bajaj Life Insurance showing double-digit increases in revenue and profitability, though insurance segments saw profit declines due to lower capital gains and GST impact.

• Lending businesses saw robust AUM and profit growth, with improved asset quality and strong capital adequacy.

• Emerging businesses showed progress in scale and revenue, with clear break-even timelines and continued investment in technology and network.

• The Board approved unaudited financial results, an ESOP equity share issue, and plans to pursue a re-insurance business through a new subsidiary.

Financial highlights

• Bajaj Finance AUM grew 24% to ₹546,944 crore; PAT up 27.6% to ₹6,081 crore; GNPA/NNPA improved to 0.96%/0.39%.

• Bajaj Housing Finance AUM up 24.3% to ₹149,624 crore; PAT up 23% to ₹715 crore; GNPA/NNPA at 0.29%/0.12%.

• Bajaj General Insurance GWP grew 11.3% to ₹5,789 crore, with a combined ratio of 104.7%. PAT declined to ₹478 crore due to lower capital gains and higher loss ratios.

• Bajaj Life Insurance GWP surged 35.1% to ₹7,399 crore; VNB up 87% to ₹271 crore; new business margin expanded to 15.9%. PAT declined to ₹51 crore due to lower capital gains and GST impact.

• Bajaj Asset Management AUM reached ₹31,444 crore, up 26% year-over-year, with a 63% equity mix.

Outlook and guidance

• Insurance subsidiaries expect continued strong solvency and are preparing for Ind AS transition by April 2027.

• Lending businesses anticipate further improvement in operating efficiency and asset quality.

• Emerging businesses target break-even in Q3/Q4 FY2027 for Finserv Direct and FY2028 for Health, with asset management aiming for ₹1 lakh crore AUM in three years.

• The group continues to focus on sustainable and profitable growth, leveraging technology and digital platforms for customer-centricity and operational efficiency.