Bajaj Finance (BAJFINANCE) Q3 25/26 earnings summary

Executive summary

• Core operating performance was strong, with AUM growth of ₹23,622 crore (up 22% YoY) and 23% YoY PAT growth before exceptional items; 13.9–14 million new loans booked and customer franchise expanded to 115.4 million.

• After accelerated ECL provision and a one-time gratuity charge due to new labor codes, PAT declined 6% YoY; annualized ROA and ROE were 4.3–4.6% and 18.5–19.6%, respectively.

• Proactive, permanent changes to provisioning (LGD floors) and a one-time gratuity charge were taken to enhance balance sheet resilience amid global volatility.

• AI implementation and digital transformation are being scaled across the business, delivering measurable operational benefits and improved customer engagement.

Financial highlights

• AUM up 22% YoY to ₹484,477–485,883 crore; new loans booked up 15% YoY; deposits at ₹71,037 crore, contributing 17% to borrowings.

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

• OPEX to NTI improved to 32.8%; pre-provision profit up 19% YoY.

• 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%.

Outlook and guidance

• FY 2026 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%.

• Fee income growth to normalize to 17–20% in FY 2027; credit cost guidance for next year at 165–175 bps, including permanent provisioning changes.

• FY 2026 customer addition expected at 17–18 million; cost of funds projected at 7.55–7.60%.

• Guidance for FY 2027 to be provided with Q4 results.