Bajaj Finance Consolidated Net Profit Up by 22% in June Quarter

Pune, July 24, 2025: Bajaj Finance Limited’s (NSE: BAJFINANCE, BSE: 500034)  consolidated net profit in Q1FY26 rose by 22% year-on-year (YoY) to ₹4,765 crore. The company’s consolidated Assets Under Management (AUM) stood at ₹4,41,450 crore as of 30th June 2025, marking a 25% YoY increase.

Despite the positive financials, the shares of Bajaj Finance closed 0.97% or ₹9.35 lower at ₹958.95.

Consolidated Financial Highlights (₹ in crore)

 For the first quarter of fiscal year 2026, Bajaj Finance displayed a strong consolidated financial performance. The Total Income for Q1FY26 reached ₹19,528 crore, marking a 21% increase from ₹16,102 crore in Q1FY25. Profit Before Tax (PBT) also grew by 21% YoY, standing at ₹6,368 crore compared to ₹5,265 crore in the prior year. This led to a Profit After Tax (PAT) of ₹4,765 crore, a significant 22% surge from ₹3,912 crore in Q1FY25. In terms of asset quality, the Gross NPA was reported at 1.03%, while the Net NPA stood at 0.50%. The company maintained a healthy Capital Adequacy Ratio (CRAR) of 21.96% as of Q1FY26.

Standalone Performance (₹ in crore)

 The standalone results for Q1FY26 also reflect healthy growth. Total Income for Q1FY26 stood at ₹16,697 crore, a 22% YoY growth from ₹13,726 crore in Q1FY25. Net Interest Income increased by 21% YoY to ₹9,269 crore from ₹7,647 crore. Profit Before Operating Provisions and Taxes (PPOP) rose 22% YoY to ₹7,624 crore from ₹6,273 crore. Profit After Tax (PAT) reached ₹4,133 crore, up 22% YoY from ₹3,402 crore. Asset quality showed Gross NPA at 1.28% and Net NPA at 0.63%.

Segment-Wise AUM Performance (₹ in crore)

 The company witnessed robust AUM growth across various lending segments. Urban B2C Loans grew 29% YoY to ₹92,333 crore in Q1FY26 from ₹71,628 crore. MSME Lending also increased by 29% YoY, reaching ₹52,538 crore from ₹40,791 crore. Mortgages (including BHFL) saw a 24% YoY growth, expanding to ₹1,36,377 crore from ₹1,09,671 crore. Loan Against Securities rose 24% YoY to ₹27,225 crore from ₹22,043 crore. Gold Loans experienced an impressive 82% YoY growth, standing at ₹9,989 crore compared to ₹5,494 crore. The MFI Business showed the most substantial growth at 458% YoY, with AUM reaching ₹1,556 crore from ₹279 crore.

Subsidiary Highlights

• Bajaj Housing Finance Ltd (BHFL): Reported a 21% YoY increase in Profit After Tax (PAT), reaching ₹583 crore. Its AUM stood at ₹1,20,420 crore.
• Bajaj Financial Securities Ltd (BFinsec): Posted a 37% YoY rise in PAT to ₹41 crore, with its AUM growing by 39% YoY to ₹6,098 crore.

Corporate Announcements

• The company successfully completed a 1:1 stock split and 4:1 bonus issue in June 2025.
• Anup Saha resigned as MD and Director of BFL on July 21, 2025. Rajeev Jain has been re-designated as Vice Chairman and Managing Director till March 2028.

Management Commentary

“Despite a seasonally lean quarter, we have delivered robust growth across lending and deposit franchises while maintaining high asset quality and provisioning buffers. Our AUM growth of 25% and PAT increase of 22% reflect the strong momentum in our business segments,” said Rajeev Jain, Vice Chairman & MD.

Regulatory Disclosures

The company confirmed that its Non-Convertible Debentures (NCDs) remain fully secured, with the asset cover as of 30th June 2025 exceeding 100%, in compliance with SEBI regulations. Furthermore, there were no deviations in the use of proceeds from commercial papers or debentures, as certified under SEBI Regulations 52(7) and 52(7A).

Insights For Investors

• Strong Profit Growth: Bajaj Finance posted a 22% YoY rise in consolidated net profit to ₹4,765 crore, underpinned by higher interest income and well-managed costs.
• Robust AUM Expansion: AUM crossed ₹4.41 lakh crore, up 25% YoY, with broad-based growth across urban B2C, MSME, mortgage, and gold loan segments, indicating sustained demand and franchise strength.
• Asset Quality Remains Solid: GNPA and NNPA stood at 1.03% and 0.50%, respectively, reflecting prudent risk management despite rapid loan book expansion.
• Subsidiary Contributions Growing: BHFL and BFinsec delivered healthy profit growth of 21% and 37% YoY, respectively, showing traction across housing and capital market businesses.
• Corporate Actions & Leadership Stability: The recent stock split and bonus issue may improve stock liquidity, while the leadership continuity with Rajeev Jain’s extended term supports long-term strategic execution.

What’s Ahead For Bajaj Finance?

Bajaj Finance is well-positioned for continued growth in FY26, supported by strong fundamentals and diversified loan growth across segments. The sharp rise in AUM and steady asset quality signal sustained credit demand and disciplined risk management. Subsidiaries like BHFL and BFinsec are scaling efficiently, contributing meaningfully to the bottom line. The recent stock split and bonus issue are expected to enhance retail participation and stock liquidity. With stable leadership and a robust capital base (CRAR at 21.96%), Bajaj Finance is likely to maintain its growth momentum, although near-term stock performance may be impacted by profit-booking or market volatility.

About the Company

Bajaj Finance Limited is a leading NBFC listed on NSE and BSE, engaged in consumer and commercial lending, SME finance, and wealth advisory. The company is rated AAA/Stable across instruments by CRISIL, ICRA, CARE, and India Ratings.

REF:https://nsearchives.nseindia.com/corporate/BAJFINANCE_24072025152811_BSENSEOutcome.pdf

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