Bajaj Finance Q1FY2026

• Net Profit : Net earnings above estimates by 2.8% (up by 21.8% y-o-y and 4.8% q-o-q) to Rs. 4,765 crore driven by healthy AUM growth, lower opex and below estimate credit cost.
• NII and Growth: NII was almost in line with estimates, growing by 22.3%/4.3% (y-o-y/q-o-q) to Rs. 10,227 crore. NIM (as a percentage of AUM) came in at 9.27% down by 18/15 bps (y-o-y/q-o-q) due to higher drop in yield on AUM. It was also below estimates by 3 bps.
• Other income: was up by 16.3%/13.0% (y-o-y/q-o-q) to Rs. 2,383 crore, above estimates by 2.8% due to strong growth in fee income.
• Opex: below estimates by 1.7% to Rs. 4,123 crore (up by 18.8% y-o-y and 4.4% q-o-q due to stable other opex.
• PPOP: was above estimates by 1.2% to Rs. 8,487 crore (up by 22.2% y-o-y and 6.5% q-o-q ) driven by growth in other income and lower opex.
• Credit cost: was elevated and grew by 25.9% y-o-y and down by 9.0% q-o-q to Rs. 2,120 crore. However, it was below estimates by 3.9%. credit cost were elevated in 2 & 3-wheeler and MSME businesses. Thus, the company has taken significant credit actions in both these businesses hence AUM growth will be low for these business in FY26.
• AUM grew by 24.6%/5.9% (y-o-y/q-o-q), to Rs. 441,450 crore driven by robust growth on yearly basis across the segments except two and three wheelers. Gold loan, SME loan, car loan and urban B2C grew faster than others.
• Asset quality: deteriorated in the quarter. GS-3 was up by 17/7 bps (y-o-y/q-o-q) while NS-3 was up by 12/6 bps (y-o-y/q-o-q) due to stress in 2&3 wheelers and MSME business.
• New loans booked were at 13.49 MM in Q1 FY26 as against 10.97 MM in Q1 FY25, recording a growth of 23%. The Company expects to disburse over 50 MM new loans in FY26.
• The Company added 4.69 MM customers to its franchise in Q1. The Company expects to add 14-16 MM new customers to its franchise in FY26

View : The company reported above estimates net earnings driven by strong AUM growth, lower opex and lower credit cost. Overall, healthy quarter, however asset quality deteriorated.

 Actual vs Estimates

Asset quality

Quarterly Table

   Key Ratio