Bajaj Finance (BAJFINANCE) Q3 25/26 earnings summary

Executive summary

• Core operating performance was strong, with AUM growth of ₹23,622 crore (22% YoY) and 23% YoY PAT growth before exceptional items; customer franchise expanded by 4.76 million in Q3 to 115.4 million, with 13.9 million new loans booked.

• Two significant one-time charges: a permanent increase in ECL provisioning (₹1,406 crore) and a gratuity liability adjustment (₹265 crore) due to new labor code, resulting in a 6% YoY decline in reported PAT.

• Gain on sale of BHFL shares (₹1,416 crore) recognized as an exceptional item in standalone financials.

Financial highlights

• AUM up 22% YoY to ₹485,883 crore; new loans booked up 15% YoY to a record 14 million in Q3; deposits at ₹71,037 crore, contributing 17% to borrowings.

• Net interest income grew 21% YoY to ₹11,317 crore; net total income up 19% YoY to ₹13,875 crore; OPEX to NTI improved to 32.8%.

• Pre-provision profit up 19% YoY; PBT up 23% YoY; ROA at 4.6% and ROE at 19.6% (core level).

• GNPA at 1.21%, NNPA at 0.47%; provisioning coverage ratio on stage 3 assets at 61%.

• Capital adequacy at 21.45%; Tier-1 capital at 20.60%; liquidity coverage ratio at 248%.

Outlook and guidance

• FY26 AUM growth expected at 22%, with MSME business growth to recover to 20%+ in 2-3 quarters; 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%.

• Credit cost guidance for next year at 165-175 bps, reflecting permanent ECL changes.

• Fee income growth expected to normalize to 17-20% YoY.

• FY26 customer addition expected at 17–18 million; cost of funds projected at 7.55–7.60%.

• Guidance for FY27 to be provided with Q4 results.