Bajaj Finance Limited (BAJFINANCE.NS) Bundle
Bajaj Finance's recent scorecard demands attention: Q1 FY26 net total income surged 21% to ₹12,610 crore while PAT jumped 20% to ₹4,699 crore, and Q2 FY26 total income climbed 18.04% with net profit up 21.89% to ₹4,875.36 crore, underscoring revenue momentum driven by strong loan disbursements and a 22% expansion in customers to over 101.82 million; at the same time AUM expanded 26% to ₹4,16,661 crore, deposits rose to ₹72,109 crore (19% of borrowings), consolidated net worth hit ₹98,937 crore, gearing remained a conservative 3.6x and market confidence pushed the stock to an all‑time high of ₹8,405.95 with market cap at ₹6,145.3 billion-yet asset quality showed strain as gross NPAs widened to 1.03% (net NPAs 0.50%) amid higher provisions and a 25% cut in unsecured MSME volumes, making a close read of profitability, liquidity, valuation and risk dynamics essential.
Bajaj Finance Limited (BAJFINANCE.NS) - Revenue Analysis
Bajaj Finance Limited reported continued top-line momentum across recent quarters, driven by strong loan disbursements, product diversification and an expanding customer base. Key quarter-on-quarter and year-on-year metrics highlight sustained net interest income growth, rising fee income and outperformance versus industry peers.- Q1 FY26 net total income rose 21% YoY to ₹12,610 crore from ₹10,418 crore in Q1 FY25.
- Interest income from loans showed robust growth - in Q4 FY25 it increased 23.7% YoY to ₹16,359.1 crore.
- Fee and commission income in Q4 FY25 grew 14.9% YoY to ₹1,521.7 crore, representing 8.24% of total operating revenue.
- Q2 FY26 total income climbed 18.04% YoY to ₹20,180.76 crore; net profit for Q2 FY26 rose 21.89% YoY to ₹4,875.36 crore.
- Revenue expansion has outpaced the broader industry average, signaling stronger-than-peer growth dynamics.
| Metric | Period | Amount (₹ crore) | YoY Change | Share / Notes |
|---|---|---|---|---|
| Net Total Income | Q1 FY26 | 12,610 | +21.0% | Vs 10,418 in Q1 FY25 |
| Interest Income on Loans | Q4 FY25 | 16,359.1 | +23.7% | Primary revenue driver |
| Fee & Commission Income | Q4 FY25 | 1,521.7 | +14.9% | 8.24% of operating revenue |
| Total Income | Q2 FY26 | 20,180.76 | +18.04% | Broader revenue base including treasury & fees |
| Net Profit | Q2 FY26 | 4,875.36 | +21.89% | Reflects operating leverage and NII expansion |
- Loan disbursement growth and customer acquisition remain the primary catalysts for interest income expansion.
- Fee-income diversification (cards, payment services, insurance distribution) is reducing reliance on pure interest spread.
- Operating leverage from scale has translated into disproportionate profit growth relative to income increases.
Bajaj Finance Limited (BAJFINANCE.NS) - Profitability Metrics
Bajaj Finance reported robust profitability trends driven by strong operating performance and disciplined credit management. Key headline numbers demonstrate meaningful growth in earnings and efficiency gains that align with industry benchmarks.- Q1 FY26 PAT: ₹4,699 crore, up 20% from ₹3,912 crore in Q1 FY25.
- Pre-impairment operating profit FY25: ₹30,028 crore, a 25% increase year-on-year.
- RoA projection FY26: 4.4-4.6%.
- RoE projection FY26: 19-20%.
- Operating expenses in Q4 FY25: ₹3,950 crore, up 19.62%-reflecting investment in growth initiatives.
- Cost-to-income ratio: improved by 40-50 basis points, indicating better operating leverage.
| Metric | Period | Value | YoY Change / Notes |
|---|---|---|---|
| Profit After Tax (PAT) | Q1 FY26 | ₹4,699 crore | +20% vs Q1 FY25 (₹3,912 crore) |
| Pre-impairment Operating Profit | FY25 | ₹30,028 crore | +25% YoY |
| Return on Assets (RoA) - projected | FY26 | 4.4-4.6% | Improved asset profitability |
| Return on Equity (RoE) - projected | FY26 | 19-20% | Strong shareholder returns |
| Operating Expenses | Q4 FY25 | ₹3,950 crore | +19.62% YoY; investment for expansion |
| Cost-to-Income Ratio | Recent | Improved by 40-50 bps | Enhanced operational efficiency |
- Profitability mix: core lending spreads, fee income from consumer finance and BNPL, and strong recoveries underpin PAT growth.
- Efficiency drivers: operating expense increase is strategic-customer acquisition, technology and branch expansion-while cost-to-income improvement shows rising operating leverage.
- Peer alignment: RoA and RoE projections place Bajaj Finance broadly in line with leading NBFC peers, supporting its competitive positioning.
Bajaj Finance Limited (BAJFINANCE.NS) - Debt vs. Equity Structure
Bajaj Finance Limited's capital structure through FY2025 shows a clear bias toward strengthening equity while maintaining controlled leverage to support aggressive loan-book growth.- Consolidated net worth (as of March 31, 2025): ₹98,937 crore (₹76,695 crore as of March 31, 2024).
- Consolidated gearing ratio: 3.6x (FY2025), reflecting conservative leverage for a NBFC of its scale.
- Adjusted gearing: remained below 6x over the past five fiscal years, indicating prudent financial management.
- Capital raises: ₹8,800 crore via QIP and ₹1,188 crore via preferential allotment in November 2023 bolstering equity base.
- Debt-to-equity: within acceptable industry limits, preserving financial flexibility for borrowing and growth.
| Metric | FY2025 | FY2024 | Notes |
|---|---|---|---|
| Consolidated Net Worth (₹ crore) | 98,937 | 76,695 | Equity strengthened via retained earnings and capital raises |
| Consolidated Gearing (times) | 3.6 | - | Conservative leverage for growth financing |
| Adjusted Gearing (5-year trend) | <6.0 (consistently) | Risk-mitigating capital policy | |
| Capital Raised (Nov 2023) | ₹8,800 crore (QIP) | ₹1,188 crore (Preferential) | Strengthened equity base to support growth |
| Debt-to-Equity Ratio | Within acceptable limits | - | Maintains borrowing flexibility and credit profile |
Bajaj Finance Limited (BAJFINANCE.NS) - Liquidity and Solvency
Bajaj Finance's liquidity and solvency profile through Q1 FY26 shows continued balance-sheet expansion, diversified funding, and prudent loss provisioning that together underpin the company's ability to meet short- and long-term obligations.- Assets under Management (AUM) grew 26% YoY to ₹4,16,661 crore as of March 31, 2025.
- Deposits increased 15% YoY to ₹72,109 crore, representing 19% of total borrowings.
- Cost of funds eased 20 basis points QoQ to 7.79%; FY26 guidance for cost of funds: 7.60-7.65%.
- Loan losses and provisions in Q1 FY26 rose to ₹2,120 crore from ₹1,685 crore in Q1 FY25, reflecting proactive risk recognition.
- Funding is diversified across deposits, bank lines, bonds, and securitisation, supporting a strong liquidity buffer.
| Metric | Value | Period / Change |
|---|---|---|
| AUM | ₹4,16,661 crore | +26% YoY (as of 31 Mar 2025) |
| Deposits | ₹72,109 crore | +15% YoY; 19% of borrowings |
| Cost of funds | 7.79% | -20 bps QoQ; FY26 guidance 7.60-7.65% |
| Loan losses & provisions (Q1 FY26) | ₹2,120 crore | Vs ₹1,685 crore in Q1 FY25 |
| Liquidity posture | Strong | Diversified funding + rising deposit base |
| Solvency indicators | Robust | Adequate capital coverage vs long-term obligations |
- Strengths: rapid AUM growth, growing low-cost deposit share, lower QoQ funding costs, diversified funding mix.
- Potential pressure points: elevated provisions and asset-quality cycles that may require sustained monitoring.
- Investor actionables: track deposit growth rate, cost-of-funds trajectory vs FY26 guidance, and quarterly provisioning trends.
Bajaj Finance Limited (BAJFINANCE.NS) - Valuation Analysis
Bajaj Finance's market performance and valuation metrics reflect strong investor confidence and steady earnings trajectory. Key headline figures and investor-relevant valuation indicators are summarized below.- All-time high share price: ₹8,405.95 (3 Feb 2025)
- Market capitalization: ₹6,145.3 billion INR
- Price-to-earnings (P/E): in line with industry peers (indicative of fair valuation relative to NBFC sector)
- Earnings per share (EPS): consistent growth trend, supporting shareholder value
- Dividend policy: company pays interim and final dividends, contributing to total shareholder returns
| Metric | Value / Comment |
|---|---|
| All-time high share price | ₹8,405.95 (03-Feb-2025) |
| Market Capitalization | ₹6,145.3 billion INR |
| Price-to-Earnings (P/E) | Aligned with industry peers - market implies fair valuation |
| Earnings per Share (EPS) | Consistent growth over recent periods (supports valuation) |
| Dividend Policy | Interim and final dividends declared historically - provides cash returns |
| Valuation Outlook | Fairly valued by common metrics, with room for future growth if earnings momentum continues |
- Investor view: strong market cap and record highs signal confidence; P/E parity with peers suggests valuation is not stretched.
- Income component: dividends (interim + final) augment returns, though dividend yield should be assessed relative to capital gains expectations.
- Growth support: consistent EPS growth underpins the current multiple - continued earnings expansion is key to justify any premium.
Bajaj Finance Limited (BAJFINANCE.NS) - Risk Factors
Bajaj Finance Limited faces a cluster of credit, market and operational risks that investors should weigh carefully. Recent quarterly trends show a clear uptick in asset quality stress and targeted portfolio rebalancing to protect margins and capital.- Gross non-performing assets (NPAs) increased to 1.03% in Q1 FY26 from 0.86% in Q1 FY25, signaling rising asset quality pressure.
- Net NPAs rose to 0.50% in Q1 FY26 from 0.38% in Q1 FY25, reflecting higher realized credit losses after provisions.
- The company has proactively reduced unsecured MSME volumes by 25% to limit exposure to higher-risk lending segments and mitigate elevated credit costs.
| Metric | Q1 FY25 | Q1 FY26 |
|---|---|---|
| Gross NPA (%) | 0.86% | 1.03% |
| Net NPA (%) | 0.38% | 0.50% |
| Unsecured MSME volumes | Baseline (pre-reduction) | Reduced by 25% |
- Funding-cost risk: a rising interest-rate environment and tighter wholesale markets increase the company's cost of funds, which can compress net interest margins unless pricing or product mix is adjusted.
- Regulatory risk: heightened regulatory scrutiny of NBFCs in India may bring stricter capital, provisioning or conduct requirements that could affect profitability and growth plans.
- Demand sensitivity: heavy reliance on consumer spending (consumer finance, EMI, credit cards) makes BAJFINANCE.NS sensitive to economic slowdowns, unemployment upticks, or sudden drops in discretionary spending.
- Operational and execution risks: expanding into new business lines and scaling a growing customer base increase the likelihood of integration challenges, IT/system outages, fraud exposure, and elevated compliance costs.
Bajaj Finance Limited (BAJFINANCE.NS) - Growth Opportunities
Bajaj Finance Limited's recent performance and strategic initiatives position it for sustained expansion across consumer, rural, and new financial services segments. Key quantitative indicators and strategic moves highlight multiple vectors for both top-line growth and diversification of revenue streams.- Customer base expansion: Total customers grew by 22% to 101.82 million as of March 31, 2025, reflecting strong acquisition and retention dynamics.
- Product diversification: Introduction of gold loans, commercial vehicle financing, and tractor financing broadens the addressable market beyond consumer and SME lending.
- Digital scale: The Bajaj Finserv App reached 70.57 million net installs, boosting customer engagement, cross-sell potential, and cost-efficient distribution.
- Geographic reach: Focus on rural and semi-urban markets targets underpenetrated demand pools with higher growth multipliers than saturated urban segments.
- Corporate strategy: Strategic partnerships and targeted acquisitions can accelerate capabilities in payments, insurance, and wealth, while supporting faster entry into new segments.
| Metric | Value / Status | Implication |
|---|---|---|
| Customer base (Mar 31, 2025) | 101.82 million (▲22% YoY) | Large distribution base for cross-sell and scale economies |
| Bajaj Finserv App installs | 70.57 million net installs | Digital channel for low-cost acquisition & engagement |
| New product verticals | Gold loans, commercial vehicle financing, tractor financing | Diversification of asset book and income streams |
| Target markets | Rural & semi-urban expansion | Higher growth potential; credit underpenetration |
| Strategic growth levers | Partnerships & acquisitions; entry into new financial services | Accelerates capability build and revenue diversification |
- Revenue diversification opportunities: Moving beyond core consumer loans into asset-backed lending (gold, CV, tractor), payments, insurance distribution and wealth management reduces concentration risk and stabilizes margins.
- Unit economics improvement: Digital adoption (app installs) lowers customer acquisition cost (CAC) and supports higher lifetime value (LTV) through integrated product offerings.
- Rural credit opportunity: Penetration into rural and semi-urban areas lets Bajaj Finance target smaller ticket, higher-frequency products and loans to self-employed segments with less formal credit access.
- M&A and partnerships playbook: Acquisitions for technology, NBFC/fintech platforms, or insurance/wallet businesses can plug capability gaps and deliver rapid scale in adjacent markets.
Bajaj Finance Limited (BAJFINANCE.NS) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.