Bajaj Finance LimitedQ2 FY27 Results & Financial Update
Bajaj Finance Limited: Q2 FY27 consolidated results and company financials – revenue ₹24,546.37 Cr, PAT ₹6,366.57 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Bajaj Finance price & chart
Quarter overview
Quarterly earnings analysis
Bajaj Finance delivered broad-based growth across assets under management, customer additions, and profitability for the quarter ended 30 September 2026, supported by robust demand across urban and rural markets.
Consolidated assets under management expanded by 26% year-on-year to reach ₹584,624 crore, driven by a quarterly AUM addition of ₹37,680 crore across consumer, SME, and mortgage verticals.
The company booked 13.45 million new loans during the quarter, bringing total customer franchise to 128.85 million, while cross-sell franchise expanded to 82.36 million customers.
Net interest income grew by 24% year-on-year to ₹13,335 crore, and net total income rose 23% to ₹15,974 crore, reflecting steady expansion in core lending yields and fee-based revenue streams.
Operating efficiencies remained strong, with the opex-to-net-total-income ratio standing at 33.0% compared to 33.1% in the corresponding period of the previous year.
Asset quality metrics improved, with gross non-performing assets at 1.06% and net non-performing assets at 0.42% as of 30 September 2026, underpinned by healthy portfolio vintage performance.
01 · Business model
What does Bajaj Finance do?
Bajaj Finance Limited is a diversified non-banking financial company with a deposit-taking license, operating across mass and affluent consumer segments in India through a multi-product lending architecture.
The company's core operating model focuses on consumer finance, personal loans, MSME financing, gold loans, vehicle/wheels financing, commercial lending, and mortgages delivered via both physical branch footprints and digital applications.
Through major subsidiaries including Bajaj Housing Finance Limited and Bajaj Financial Securities Limited, the group extends specialized mortgage lending, retail broking, margin trade financing, and mutual fund distribution services.
Revenue generation is driven by interest income from a large asset-under-management book, complemented by fee income from cross-selling insurance, payment services, cards, and digital financial products.
02 · Historical context
What shaped the business before this quarter
Over its 19-year consolidated operational history since FY08, Bajaj Finance has expanded its cumulative customer franchise from under 1 million to over 128 million while building an AUM base exceeding ₹5.8 lakh crore.
The company established specialized subsidiaries, notably Bajaj Housing Finance Limited and Bajaj Financial Securities Limited, to institutionalize domain expertise in mortgages and capital market services.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q2 FY27 |
|---|---|
| Total income | ₹24,575.82 Cr |
| Interest income | ₹21,936.39 Cr |
| Other income | ₹29.45 Cr |
| Provisions | ₹961.27 Cr |
| Profit before tax | ₹8,533.47 Cr |
| Profit after tax | ₹6,366.57 Cr |
| EPS | ₹10.07 |
04 · Earnings & margin drivers
What drove earnings and margins
What drove net interest income and earnings
Interest income reached ₹21,936.39 crore for the quarter, underpinned by a 26% year-on-year expansion in consolidated assets under management to ₹584,624 crore.
Non-interest income streams, including fee and commission income from cross-sold insurance products, value-added services, and payment transactions, contributed ₹2,639 crore to consolidated net total income.
NIM, spread, funding cost and credit cost
Cost of funds improved by 9 basis points sequentially during the quarter to 7.31%, supported by a diversified borrowing mix comprising money market instruments, bank loans, deposits, and external commercial borrowings.
Operating expenses stood at ₹5,275 crore, resulting in an opex-to-net-total-income ratio of 33.0%, reflecting disciplined cost management amidst scaling digital infrastructure and employee additions.
05 · Loan growth, sanctions & disbursements
How the lending book is moving
The company added 4.42 million new customers during Q2 FY27, taking the total customer franchise to 128.85 million, of which 82.36 million represent cross-sell franchise.
Booked 13.45 million new loans during the quarter, reflecting continued momentum across urban consumer finance, rural lending, and SME segments.
06 · Portfolio mix & lending exposure
Where the loan book is concentrated
Segments and products
Consolidated mortgages AUM grew by 30% year-on-year to ₹187,133 crore, with subsidiary Bajaj Housing Finance contributing ₹158,205 crore.
Gold loan AUM scaled significantly, reaching ₹24,195 crore with the addition of 321 new gold loan branches during the quarter, bringing the total branch network to 2,022.
Bajaj Financial Securities Limited expanded its AUM by 59% year-on-year to ₹12,058 crore, driven by growth in margin trade financing and retail broking accounts.
Geography and market mix
Geographic presence expanded to 4,091 locations with the addition of 18 new locations during the quarter, while active distribution points exceeded 254,000.
07 · Asset quality & capital strength
How credit quality and balance-sheet capacity changed
Capital adequacy, net worth and balance-sheet capacity
Capital adequacy ratio remained strong at 20.33% with Tier-1 capital at 19.43% as of 30 September 2026. The board approved raising up to ₹11,700 crore via QIP and ₹5,800 crore via preferential warrants to support future growth and business resilience.
08 · Strategy & portfolio evolution
How the lending mix and strategic agenda are changing
The company continued scaling its artificial intelligence transformation across 11 stages, deploying AI text bots, voice-to-data conversion, facial recognition, and automated document processing to drive operational efficiency and customer engagement.
09 · Reported developments
What changed operationally
Gross GNPA and NNPA improved to 1.06% and 0.42% respectively as of 30 September 2026, compared to 1.24% and 0.60% a year earlier.
10 · Pressure points & risks
What is not going smoothly
Stage 2 and 3 assets increased to 2.02% from 1.87% in Q1 FY27, driven by a transient ₹1,047 crore increase in the gold loan business due to short-tenor schemes that are no longer offered; management does not expect credit cost impact.
11 · Items worth noticing
The line items that can distort a quick read
Loan losses and provisions for Q2 FY27 include a prudent management and macro-economic provision of ₹337 crore.
12 · Funding & balance sheet
How funding, liquidity and capital support the loan book
Capital allocation & funding
Total consolidated borrowings stood at ₹370,644 crore, supported by a liquidity buffer of ₹19,995 crore. The retail deposit book contributed ₹69,754 crore, accounting for 14% of consolidated borrowings.
13 · Management guidance & targets
What management is targeting from here
The company expects to disburse 60 to 62 million new loans in FY27.
Management expects to add 18 to 20 million new customers to its franchise in FY27.
The company plans to close FY27 with 2,700 to 2,800 gold loan branches and 520 to 550 microfinance branches.
14 · Beyond the numbers
What changed beyond the numbers
AI Unit Scaling
The dedicated employee count working in the company's AI unit reached 328 as of 30 September 2026, marking a 171% year-on-year increase.
15 · Previous-quarter changes
What changed since the previous quarter
Cost of funds improved by 9 basis points sequentially from Q1 FY27 to 7.31% in Q2 FY27.
16 · Key Q&A
The quarter, answered directly
What does Bajaj Finance do?
Bajaj Finance Limited is a diversified non-banking financial company with a deposit-taking license, operating across mass and affluent consumer segments in India through a multi-product lending architecture.
What is the clearest takeaway from Q2 FY27?
Bajaj Finance delivered broad-based growth across assets under management, customer additions, and profitability for the quarter ended 30 September 2026, supported by robust demand across urban and rural markets.
What drove earnings or loan-book movement?
Interest income reached ₹21,936.39 crore for the quarter, underpinned by a 26% year-on-year expansion in consolidated assets under management to ₹584,624 crore.
What mattered most for margins, funding or credit cost?
Cost of funds improved by 9 basis points sequentially during the quarter to 7.31%, supported by a diversified borrowing mix comprising money market instruments, bank loans, deposits, and external commercial borrowings.
What changed operationally beyond the headline numbers?
Capital adequacy ratio remained strong at 20.33% with Tier-1 capital at 19.43% as of 30 September 2026. The board approved raising up to ₹11,700 crore via QIP and ₹5,800 crore via preferential warrants to support future growth and business resilience.
What is management guiding or targeting from here?
The company expects to disburse 60 to 62 million new loans in FY27.
17 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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18 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Capital Raising Execution: Monitor shareholder approval and execution timeline for the proposed ₹11,700 crore QIP and ₹5,800 crore preferential warrant issuance.
- 02
Gold Loan Branch Expansion: Track progress toward the target of closing FY27 with 2,700 to 2,800 gold loan branches.
- 03
Asset Quality Trends: Observe the normalization of Stage 2 gold loan assets following the discontinuation of short-tenor schemes.
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