Bajaj Finance consolidated net profit up 23% to ₹4,948 crore in Q2

Bajaj Finance's standalone profit fell 24% to Rs 4,251 crore due to higher loan loss provisions and a high base last year, even as consolidated profit rose 23% on robust loan growth

Bajaj Finance on Monday reported a 24 per cent year-on-year (YoY) decline in standalone net profit to Rs 4,251 crore in July - September quarter (Q2FY26) due to higher loan loss provisions and absence of exceptional gain accrued during the same period of last year.

 

In the corresponding period last year (Q2FY25), the finance company had reported an exceptional gain of Rs 2,544 crore on account of sale of equity shares of Bajaj Housing Finance pursuant to the initial public offering of the company. 

 

On a consolidated basis, Bajaj Finance’s net profit was up 23 per cent Y-o-Y to ₹4,948 crore in Q2FY26.

 

Its net interest income (NII) was up 21 per cent Y-o-Y at ₹9,275 crore in the quarter as new loans booked by the lender grew 26 per cent Y-o-Y to over 12 million in Q2FY26, compared to 9.59 million in the same period last year.

 

Loan loss provisions of the lender increased 17 per cent Y-o-Y in Q2FY26 to ₹2,218 crore.

 

“Consumer leverage remains an area of concern. The company continues to take ongoing actions to reduce contribution of customers,” it said, adding that credit cost remained elevated in captive 2- and 3-wheeler, and MSME businesses. MSME stands for micro, small, and medium enterprises.

 

“The company has cut 25 per cent of its unsecured MSME volumes and thus, assets under management (AUM) growth for MSME lending will be 10-12 per cent in FY26,” it said.

 

On a consolidated level, Bajaj Finance’s customer franchise topped 110.64 million, up 20 per cent Y-o-Y at 92.09 million.

 

“Structural reforms in income tax (I-T) and goods and services tax (GST) by the government lifted up consumer sentiment and spurred consumption. These initiatives led to a strong festive season performance for consumption loans for the company,” said the company, adding that it has seen a strong momentum in consumption finance during the festive season (Navratri to Diwali), disbursing a record 6.3 million consumer loans, recording a growth of 27 per cent in volume and 29 per cent in value as compared to the same period last year.

 

“The company not only saw a surge in loan disbursements, but also a premiumisation trend, with customers shifting to higher quality products (mainly TVs and ACs) for better lifestyle,” the company said.

 

It reported gross non-performing assets (NPAs) of 1.59 per cent, and a net NPA of 1.33 per cent as of September.