Bajaj Finance Q3FY26 results: Net profit declines 6% to ₹4,066 crore

Accelerated credit provisions and a one-time labour code charge weighed on Bajaj Finance's Q3FY26 profit, even as income growth and asset quality stayed healthy

Bajaj Finance, the country’s largest private sector shadow lender, reported a 6 per cent year-on-year (Y-o-Y) decline in consolidated net profit at ₹4,066 crore for the quarter ended December 31, 2025 (Q3FY26). It was weighed down by accelerated credit provisions and a one-time charge related to implementation of the new labour codes.

 

During the quarter, the lender made an accelerated expected credit loss (ECL) provision of ₹1,406 crore after strengthening its provisioning framework by introducing a minimum loss-given-default floor across businesses.

 

It also took a one-time exceptional charge of ₹265 crore towards higher gratuity liabilities arising from the new labour codes.

 

Excluding these one-off items and related tax impact, consolidated net profit rose 23 per cent Y-o-Y to ₹5,317 crore, aided by robust income growth, despite 9 per cent increase in loan-loss provisions. 

 

Net interest income (NII) of the lender surged 21 per cent to ₹11,317 crore, while net total income increased 19 per cent to ₹13,875 crore.

 

Loan loss provisions, on a consolidated basis, increased to ₹2,219 crore in Q3FY26, compared to ₹2,043 crore in the same period a year ago. 

 

In Q3, cost of funds was 7.45 per cent, an improvement of 7 basis points (bps) over Q2 FY26. Cost of funds is expected to be 7.55-7.6 per cent in FY26.

 

Consolidated assets under management (AUM) increased 22 per cent Y-o-Y to ₹4.86 trillion at the end of December quarter. 

 

The company booked 13.9 million new loans during the quarter, up 15 per cent from a year earlier, while its customer franchise expanded 19 per cent to 115.4 million.

 

Asset quality remained stable despite the higher provisioning. Gross non-performing assets (GNPAs) stood at 1.21 per cent and net NPAs were at 0.47 per cent as of December 31, 2025.

 

The capital adequacy ratio was 21.45 per cent, with Tier-I capital at 20.60 per cent.

 

The deposit book of the lender stood at ₹71,037 crore as of December 2025. Deposits contributed to 17 per cent of consolidated borrowings as of December 2025.

 

Bajaj Housing Finance, the company’s housing finance subsidiary, reported a 23 per cent Y-o-Y increase in AUM to ₹1.33 trillion. Net profit rose 21 per cent to ₹665 crore during the quarter, supported by strong loan growth and stable asset quality.