- Bajaj Finance's net profit rose 28.5% to Rs 6,266 crore in Q2 FY27
- Net interest income grew 23.6% to Rs 13,334 crore year-on-year
- Assets under management increased 26% to Rs 5.85 lakh crore
Bajaj Finance Ltd. reported a strong performance for the September quarter of fiscal 2027, with net profit rising 28.5% year-on-year to Rs 6,266 crore from Rs 4,875 crore in the corresponding quarter last year. Net interest income (NII) increased 23.6% to Rs 13,334 crore from Rs 10,785 crore, while assets under management (AUM) grew 26% to Rs 5.85 lakh crore.
The non-banking financial company (NBFC) reported an improvement in asset quality, with gross non-performing assets (NPAs) declining to 1.06% from 1.24% a year earlier. Net NPAs fell to 0.42% from 0.60%. Operating profit increased 23% to Rs 10,699 crore from Rs 8,685 crore in the year-ago quarter.
Net total income grew 23% to Rs 15,974 crore from Rs 12,982 crore in second quarter of fiscal 2026. The cost-to-income ratio remained broadly stable, with operating expenses accounting for 33% of net total income compared with 33.1% a year earlier. The company expects a 25-40 basis-point improvement in its operating expenses-to-net total income ratio in FY27.
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Bajaj Finance's AUM stood at Rs 5,84,624 crore as of September 30, 2026, compared with Rs 4,62,261 crore a year earlier. The company added Rs 37,680 crore to its AUM during the September quarter.
It booked 13.45 million new loans in quarter under review, an increase of 11% from 12.17 million in the year-ago quarter. The company cautioned that year-on-year loan-volume growth is not directly comparable because the festival season began earlier last year.
Bajaj Finance expects to disburse 60-62 million new loans during fiscal 2027.
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The company's customer franchise expanded to 128.85 million as of September 30, 2026, after it added 4.42 million customers during the quarter. Its cross-sell franchise stood at 82.36 million customers. The company expects to add 18-20 million customers during FY27.
Bajaj Finance added 4,100 distribution points during the quarter, taking its geographic presence to 4,091 locations. Its active distribution points exceeded 254,000 as of September 30, 2026. The company plans to open 150-175 new locations during FY27.
Its gold loan business continued to expand, with 321 branches added during the quarter. Bajaj Finance had 2,022 gold loan branches and 480 microfinance institution (MFI) branches at the end of September. It expects to close fiscal 2027 with 2,700-2,800 gold loan branches and 520-550 MFI branches.
Bajaj Finance's cost of funds stood at 7.31% in Q2 fiscal 2027, improving by nine basis points from the preceding quarter.
Its deposits book stood at Rs 69,754 crore as of September 30, 2026, contributing 14% of consolidated borrowings. The company maintained a liquidity buffer of Rs 19,995 crore at the end of the quarter.
The full-time employee count stood at 75,845, following the addition of 2,584 employees during the quarter. Excluding the gold loan and MFI businesses, the net addition was 1,058 employees. Employee attrition stood at 15.1%. The company's fixed-term contract resource count was 89,484 at the end of September.
Loan losses and provisions increased to Rs 2,166 crore in second quarter of this fiscal from Rs 2,080 crore in the corresponding quarter last year. The latest quarter included a prudent management and macroeconomic provision of Rs 337 crore. Excluding this additional provision, loan losses and provisions stood at Rs 1,829 crore, down 12% year-on-year.
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Loan losses as a proportion of average assets under finance declined to 1.56% from 1.88% a year earlier. Excluding the additional provision, the ratio stood at 1.32% in September quarter.
Stage 2 and Stage 3 assets increased by Rs 1,601 crore during the quarter. This included a Rs 1,047 crore increase in the gold loan business, attributed to short-tenor schemes that the company has discontinued.
Stage 2 and Stage 3 assets rose to 2.02% of loans from 1.87% in first quarter of fiscal 2027. Bajaj Finance said it does not expect the transitional increase in Stage 2 and Stage 3 gold loan assets to affect its credit costs.
The provisioning coverage ratio on Stage 3 assets stood at 60% in Q2 FY27.
Bajaj Finance reported an annualised return on assets (ROA) of 4.6% in Q2 FY27, compared with 4.5% in the year-ago quarter. Its annualised return on equity (ROE) improved to 20.6% from 19.1%. Capital adequacy remained strong at 20.33% as of September 30, 2026, with Tier-1 capital at 19.43%. The consolidated leverage ratio stood at 5.1 times.
The company said it considers a leverage ratio of 5-5.5 times for resilience and capital planning.
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