Bajaj Finance on Monday, October 19, reported a 28.8% year-on-year rise in consolidated net profit to ₹6,367 crore for the September quarter, driven by strong growth in net interest income (NII) and assets under management.
The NII, or the core income of the consumer finance major, rose 23.6% year-on-year to ₹13,335 crore in the second quarter, compared with ₹10,785 crore a year earlier. Net total income increased 23% to ₹15,974 crore.
Assets under management (AUM) grew 26% year-on-year to ₹5.85 lakh crore as of September 30, 2026. The company added ₹37,680 crore to its AUM during the quarter.
Bajaj Finance booked 13.45 million new loans in Q2 FY27, an 11% increase from 12.17 million in the year-ago period. The company added 4.42 million customers during the quarter, taking its customer franchise to 128.85 million, up 16% year-on-year.
Asset quality and credit costs
Bajaj Finance’s asset quality remained strong, although it weakened slightly on a sequential basis. Gross non-performing assets (NPAs) stood at 1.06% as of September 30, compared with 0.96% in the June quarter. Net NPAs rose to 0.42% from 0.39% quarter-on-quarter. Both ratios were lower than their year-ago levels of 1.24% and 0.60%, respectively.
Loan losses and provisions increased 4% year-on-year to ₹2,166 crore. This included a ₹337 crore provision for management and macroeconomic risks. Excluding this additional provision, loan losses and provisions declined 12% year-on-year to ₹1,829 crore.
The company’s loan loss ratio, measured against average assets under finance, improved to 1.56% in Q2 FY27 from 1.88% a year earlier. Excluding the additional provision, the ratio stood at 1.32%.
Bajaj Finance business outlook and profitability
Bajaj Finance’s profit before tax rose 29% year-on-year to ₹8,537 crore, while pre-provisioning operating profit increased 23% to ₹10,699 crore. Annualised return on assets improved to 4.6% from 4.5% a year earlier, while return on equity rose to 20.6% from 19.1%.
The company expects to disburse 60-62 million new loans and add 18-20 million customers in FY27. It also plans to open 150-175 new locations during the financial year.
The cost of funds declined by nine basis points sequentially to 7.31% in Q2 FY27. The company expects its operating expenses as a proportion of net total income to improve by 25-40 basis points in FY27.
Shares of the NBFC had ended 2.5% lower at ₹957.35 ahead of the results announcement on Monday. The day’s losses put the stock in a negative territory for the calendar year, down 1.6% year-to-date. It has fallen more than 11% in the trailing 12 months.
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