Bajaj Finance (BAJFINANCE) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 saw strong AUM growth of 26% year-over-year to ₹416,661 crore, with 10.7 million loans booked and 4.7 million new customers added in Q4, bringing the customer franchise to 101.82 million.

• Consolidated profit after tax for FY25 reached ₹16,779 crore, up 16% year-over-year, with Q4 PAT up 19% to ₹4,546 crore.

• Digital platforms matured, with 70.57 million app users and ₹38,642 crore business delivered digitally in FY25.

• The company is advancing its FinAI transformation and AI deployment, with significant senior management appointments to support growth.

• Board recommended a 4:1 bonus share issue, share split, and final and special dividends, reflecting strong reserves and growth outlook.

Financial highlights

• Net interest income for FY25 rose 23% to ₹36,393 crore; net total income increased 24% to ₹44,954 crore.

• Q4 PAT grew 19% year-over-year to ₹4,546 crore; PBT grew 11% to ₹5,647 crore, impacted by one-time ECL provision.

• Opex to net total income improved to 33.1% in Q4 FY25; cost of funds at 7.99%, expected to decline further.

• Loan losses and provisions in FY25 were ₹7,966 crore, including a ₹359 crore additional ECL provision.

• Capital adequacy ratio at 21.93% as of March 31, 2025; liquidity buffer at ₹18,754 crore.

Outlook and guidance

• FY26 guidance: AUM growth of 24–25%, customer additions of 14–16 million, stable NIM, opex/NTI to improve by 40–50 bps, and credit cost corridor of 1.85–1.95%.

• ROA expected at 4.4–4.6%, ROE at 19–20% for FY26; long-term ROA guidance widened to 4.3–4.7%, ROE to 19–21%.

• Over 100 AI applications to be deployed in FY26 to drive productivity and efficiency.

• Bonus issue and share split intended to enhance retail participation and reflect confidence in future growth.

• Management remains optimistic, supported by robust reserves and strong financial performance.