Bajaj Finance (BAJFINANCE) Q2 24/25 earnings summary

Executive summary

• AUM grew 29% year-over-year to ₹3,73,924 crore, with 9.7 million loans booked and nearly 4 million new customers added in Q2 FY25; customer franchise reached 92.1 million.

• Profit after tax rose 13% to ₹4,014 crore; ROE at 19.1% and ROA at 4.48%, both impacted by elevated loan losses.

• Bajaj Housing Finance completed a ₹6,560 crore IPO, reducing the parent’s stake to 88.75%.

• Bajaj Finserv App reached 61.67 million net users as of September 2024.

• Loan losses and provisions remained elevated, impacting profit growth and return on assets.

Financial highlights

• Net interest income grew 23% to ₹8,838 crore; net total income up 24% to ₹10,946 crore.

• Opex to net total income improved to 33.2% from 34% year-over-year.

• Pre-provision operating profit grew 25%; profit before tax up 14% to ₹5,401 crore.

• Loan losses and provisions rose 77% year-over-year to ₹1,909 crore; net loan loss to average assets at 2.13%.

• Capital adequacy ratio at 21.69%; Tier 1 capital at 20.90%.

Outlook and guidance

• FY25 net loan loss to average assets now guided at 2.00–2.05%, higher than previous 1.75–1.85% estimate.

• New customer additions for FY25 expected at 15–16 million, slightly above last year.

• AUM growth for FY25 forecast at 27–28%, with 2–3% from new business lines.

• Management expects loan loss to average AUM to decline to 2% by Q4.

• Long-term guidance: AUM growth 25–27%, profit growth 23–24%, GNPA 1.2–1.4%, ROA 4.6–4.8%, ROE 21–23%.