Bajaj Finance (BAJFINANCE) Q3 24/25 earnings summary

Executive summary

• Achieved highest-ever AUM growth of 28% to ₹398,043 crore, with consolidated profit after tax rising 18% year-over-year to ₹4,308 crore and ROA steady; booked 12.06 million new loans and added 5.03 million new customers in Q3 FY25, expanding the customer franchise to 97.12 million.

• Launched BFL 3.0 FinAI strategy, marking a new phase of digital and AI-driven transformation.

• Bajaj Finserv App net users reached 66.57 million.

• Standalone profit after tax for Q3 FY25 was ₹3,706 crore, up 17% year-over-year; standalone AUM grew 26% to ₹293,370 crore.

Financial highlights

• Net interest income grew 23% year-over-year to ₹9,382 crore; net total income up 26% to ₹11,673 crore in Q3 FY25.

• Pre-provisioning operating profit rose 27% to ₹7,805 crore; opex to net total income improved to 33.1% (vs. 33.9% YoY); cost of funds at 7.96%.

• Loan losses and provisions at ₹2,043 crore; GNPA/NNPA at 1.12%/0.48% (among industry lowest); provisioning coverage ratio on stage 3 assets was 57%.

• Capital adequacy at 21.57%; Tier-1 capital at 20.79%.

• Deposits grew by 19% to ₹68,797 crore; liquidity buffer at ₹13,656 crore.

Outlook and guidance

• Full-year loan loss to average AUM expected in the 2%-2.05% range for Q4, with a target of sub-2% for FY26 if macro conditions remain stable.

• Long-term guidance: AUM growth 25–27%, profit growth 22–24%, GNPA 1.2–1.4%, NNPA 0.4–0.5%, ROA 4.6–4.8%, ROE 21–23%.

• LRS 2025-29 targets: customer franchise 190–210 million, cross-sell franchise 115–125 million, ROE 20–22%, AUM per cross-sell franchise ₹80–85K by FY29.

• Focus remains on maintaining credit costs below 2% and protecting NIMs, with margin prioritized over growth.

• Emphasis on digital transformation, AI adoption, and green finance (targeting ₹2,000 crore in FY26).