Bajaj Finance tumbles after cutting FY26 AUM guidance; Q2 PAT jumps 22% YoY

Bajaj Finance slumped 6.72% to Rs 1,012.50 despite reporting a strong Q2 profit after tax (PAT), as the management revised its full-year Assets Under Management (AUM) growth guidance to 22%-23% from the earlier projection of 24%-25%.

Bajaj Finance cut its AUM growth guidance owing to slower growth in the mortgage and SME segments. The company now expects SME growth to range between 10% and 12%, while MSME growth is projected to bottom out in the first quarter of the next financial year. The management also expects credit costs to remain at the higher end of the 1.85%1.95% guidance range, with improvement anticipated from the next financial year. Elevated credit costs have led Bajaj Finance to reduce its unsecured MSME volumes by 25%.

Bajaj Finance reported a 21.89% jump in consolidated net profit to Rs 4,875.36 crore on an 18.04% rise in total income to Rs 20,180.76 crore in Q2 FY26 over Q2 FY25.

The consolidated results of Bajaj Finance include the results of its wholly owned subsidiaries, Bajaj Housing Finance (BHFL) and Bajaj Financial Securities (BFinsec), and its associate companies, Snapwork Technologies and Pennant Technologies.

The companys operating expenses rose 18% to Rs 4,296 crore in Q2 FY26 as compared to Rs 3,639 crore posted in the corresponding quarter last year.

Net interest income (NII) increased 22% to Rs 10,785 crore for Q2 FY26 from Rs 8,838 crore reported in Q2 FY25. The operating expenses to net total income ratio for Q2 FY26 stood at 32.6%, as against 33.2% in Q2 FY25.

Loan losses and provisions rose 19% in Q2 FY26 to Rs 2,269 crore from Rs 1,909 crore in Q2 FY25.

Profit before tax (PBT) stood at Rs 6,608 crore, up 22% from Rs 5,401 crore reported in Q2 FY25.

The number of new loans booked during the quarter grew 26% to 12.17 million, compared to 9.69 million in Q2 FY25.

Customer franchise stood at 110.64 million as of 30 September 2025, as compared to 92.09 million as of 30 September 2024, up 20% YoY.

The NBFCs consolidated deposits book grew 5% YoY to Rs 69,766 crore as of 30 September 2025.

Assets under management (AUM) increased 24% to Rs 4,62,261 crore as of 30 September 2025 from Rs 3,73,924 crore a year earlier. AUM grew by Rs 20,811 crore during Q2 FY26.

On the asset quality front, Gross NPA and Net NPA as of 30 September 2025 stood at 1.24% and 0.60%, respectively, compared to 1.06% and 0.46% as of 30 September 2024. The company maintained a provision coverage ratio of 52% on Stage 3 assets.

The NBFCs annualized return on average assets (ROA) stood at 4.5% in Q2 FY26, unchanged from Q2 FY25. The return on average equity (ROE) also remained stable at 19.1% during the same period.

The capital adequacy ratio (CRAR), including Tier-II capital, stood at 21.23% as of 30 September 2025, while the Tier-I capital ratio was 20.54%.

Meanwhile, the companys board approved the re-appointment of Neelesh Sarda as chief compliance officer, effective 1 February 2026.

Further, the board approved the elevation of Manish Jain, Senior President Capital Markets, as Deputy CEO. In addition to his current role as Managing Director of BFSL, Manish will also oversee the companys Loan Against Securities, Commercial Lending, and Deposits businesses.

Additionally, the board approved the elevation of Jennifer Fernandes, Deputy Chief Human Resources Officer, as the Chief Human Resources Officer of the company.

Bajaj Finance is one of Indias leading and most diversified financial services companies. The company is mainly engaged in the business of lending. BFL has a diversified lending portfolio across retail, SME, and commercial customers with a significant presence.

Powered by Capital Market - Live News