Bajaj Finance (BAJFINANCE) Q3 25/26 earnings summary

Executive summary

• Core operating performance was strong, with AUM growth of ₹23,622 crore (22% YoY) to ₹485,883 crore 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 of ₹1,406 crore and a one-time gratuity liability charge of ₹265 crore, PAT declined 6% YoY; annualized ROA and ROE were 4.3–4.6% and 18.5–19.6%, respectively.

• Proactive, permanent changes to provisioning framework and gratuity liability were implemented to enhance balance sheet resilience amid global volatility.

• AI transformation is accelerating, with significant deployment across customer lifecycle, operational processes, and measurable improvements in engagement and efficiency.

Financial highlights

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

• OPEX to NTI improved to 32.8%; loan losses and provisions before ECL were ₹2,219 crore, up 9% YoY.

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

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

• Deposits at ₹71,037 crore, representing 17% of consolidated borrowings.

Outlook and guidance

• FY 2026 AUM growth expected at 22%, with MSME segment recovery anticipated 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%.

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

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

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

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