Bajaj Finance (BAJFINANCE) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 AUM rose 26.5% to ₹584,624 crore; PAT increased 29% to ₹6,367 crore.

• Added 4.42 million customers and booked 13.45 million new loans; customer franchise reached 128.85 million.

• Q2 included ₹337 crore of prudent management and macro-economic provisions; excluding this, loan losses and provisions declined 12% YoY.

Financial highlights

• Consolidated NII rose 24% to ₹13,335 crore and net total income rose 23% to ₹15,974 crore; pre-provisioning operating profit grew 23% to ₹10,699 crore.

• PBT increased 29% to ₹8,537 crore; excluding the ₹337 crore provision, PBT was ₹8,874 crore, up 34%.

• Consolidated PAT grew 29% to ₹6,367 crore; H1 FY27 PAT was ₹12,447 crore, up 28% YoY.

• New loans booked rose 11% to 13.45 million; comparison with Q2 FY26 was affected by the earlier festival season.

Outlook and guidance

• FY27 AUM growth expectation is 26%-27%; medium-term AUM growth guidance is 23%-25% annually.

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

• FY27 operating expenses to net total income are expected to improve 25–40 bps; longer-term corridors include 19%-21% ROE and 4.3%-4.7% ROA.

• Credit-cost outlook was optimistic, supported by improving 3MOB, 6MOB and 9MOB vintage performance; management expected a similar credit-cost corridor for the rest of FY27.

• Medium-term plan targets a ₹11 lakh crore balance sheet by FY30; longer-term profit growth target is 20%-25%.