Bajaj Finance (BAJFINANCE) Q2 25/26 earnings summary

Executive summary

• AUM grew 24% YoY to ₹462,261 crore, driven by broad-based business expansion, new product lines, and strong festive season demand; 12.17 million new loans booked and 4.13 million new customers added in Q2 FY26.

• Customer franchise reached 110.64 million, with cross-sell franchise at 71.32 million and 242,000 active distribution points.

• Net interest income rose 22% YoY to ₹10,785 crore; net total income up 20% to ₹13,170 crore; opex to net total income improved to 32.6%.

• Consolidated profit after tax up 23% YoY to ₹4,948 crore; annualized ROA and ROE stable at 4.5% and 19.1%.

• Loan losses and provisions up 19% YoY to ₹2,269 crore; annualized loan loss to average AUM at 2.05%.

Financial highlights

• Profit before tax up 22% YoY to ₹6,608 crore; pre-provisioning operating profit up 21% to ₹8,874 crore.

• Operating expenses to net total income improved to 32.6% from 33.2% YoY.

• Cost of funds improved to 7.52% in Q2; full-year guidance at 7.5%-7.60%.

• Deposit book grew 5% YoY to ₹69,766 crore, now 18% of consolidated borrowings.

• GNPA/NNPA at 1.24%/0.60%; capital adequacy at 21.23% with Tier-1 at 20.54%.

Outlook and guidance

• FY26 AUM growth guidance revised to 22%-23% due to risk actions in MSME and subsidiary outlook.

• Credit cost for FY26 expected at 1.85%-1.95%, with improvement anticipated in FY27 as stressed portfolios run down.

• MSME AUM growth expected at 10%-12% in FY26 after 25% volume cut in unsecured MSME.

• Targeting 16-17 million new customer additions in FY26.

• 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%.