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Bajaj Finance Ltd
NSE: BAJFINANCE BSE: 500034 INE296A01032 Financial Services NBFC 🔎 Screen
NIFTY 50 NIFTY 100 NIFTY 200 NIFTY 500 Fin. Services
₹55,130 Cr
Market Cap
0.49
P/B
9.50%
NIM
18.2%
ROE
GNPA
Fin. Margin
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📈 Price History
Ratio Health
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About

Bajaj Finance is mainly engaged in the business of lending. BFL has a diversified lending portfolio across retail, SME and commercial customers with a significant presence in urban and rural India. It also accepts public and corporate deposits and offers variety of financial services products to its customers.(Source : 202003 Annual Report Page No:124)

✓ Strengths 3
  • Company has delivered good profit growth of 34.1% CAGR over last 5 years
  • Company has been maintaining a healthy dividend payout of 18.6%
  • Company's median sales growth is 29.4% of last 10 years
! Concerns

No concerns data yet.

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Strong beat: PBT +26% and PAT +27% YoY (before one-time items), AUM crossed ₹5 lakh crore, ROE improved to 20.0% and credit cost continued to improve. quarter Investor Presentation One-Pager? Mar 2026
Net Total Income
₹14,209 Cr
+21% YoY
Opex to NTI
33.2%
Before presentation change; +1 bps YoY, +50 bps sequentially
PAT
₹5,660 Cr
+27% YoY (pre one-time items)
ROE (Annualised)
20.0%
Pre one-time; vs 18.7% in Q4 FY25
What Went Right
  • AUM grew 22% YoY to ₹509,975 Cr, crossing the ₹5 lakh crore milestone, with ₹25,498 Cr added in the quarter.
  • New loans booked surged 20% to 12.89 MM; customer franchise reached 119.33 MM after adding 3.93 MM customers in Q4.
  • Credit cost improved: loan loss to avg AUF (pre one-time & presentation change) fell to 1.75% from 1.97% YoY; GNPA stable at 1.01% and NNPA improved to 0.41%.
  • FINAI transformation advanced: AI-led disbursals reached ₹1,895 Cr in Q4; dedicated AI headcount rose to 203 and 27 autonomous agents were deployed.
  • BHFL delivered 23% AUM growth and 20% PAT growth (ex one-time), while BFSL AUM jumped 77%.
What to Watch
  • AUM growth of 22% missed the company's own FY26 guidance of 24%-25%, partly due to deliberate risk‑first actions in MSME.
  • Cost of funds remains elevated at 7.41% (though down 4 bps QoQ) and opex to NTI edged up sequentially to 33.2% (pre change) due to New Labour Codes and Gold Loan expansion.
  • Credit provisions rose 8% YoY before one-time items (₹2,125 Cr vs ₹1,970 Cr), and BHFL's loan loss ratio doubled to 0.19% from 0.11% YoY.
  • Net NPA ticked higher at the standalone level (0.52% vs 0.44% in Q4 FY25) though overall consolidated NNPA improved.
  • FY26 ROE (after one-time actions) dropped to 18.1% from 19.2% in FY25, reflecting the impact of accelerated ECL provisions and labour code charges.
Management Guidance
  • FY27 AUM growth estimated at 22%-24%.
  • Customer franchise addition of 15-17 MM in FY27.
  • Opex to NTI improvement of 25-40 bps from current levels.
  • Net loan loss to average AUF guided at 1.45%-1.60%.
  • ROA estimated in 4.4%-4.6% range, ROE in 19%-20% range.
  • GNPA and NNPA to remain lower than long-term guidance of <1.4% and <0.5% respectively.
Investor Lens
The thesis remains intact: Bajaj Finance continues to deliver industry‑leading growth (22% AUM) with improving credit quality and a clear AI‑led productivity roadmap. The FY27 guidance implies further margin expansion (25-40 bps opex improvement) and a notable drop in credit cost (1.45%-1.60% vs FY26's ~1.93% before one‑time items), which should support ROE staying near 20%. Key watch items include: (1) execution of FINAI at scale (targeting 800+ AI agents by FY27), (2) recovery in MSME growth after the risk‑first pivot, and (3) deposit traction (₹68,533 Cr, 16% of borrowings) as a low‑cost funding lever. The one‑time ECL overlay (₹142 Cr in Q4) suggests management remains cautious, but the underlying portfolio quality (stage 2 & 3 net decline) is encouraging. Overall, a high‑quality franchise with manageable near‑term headwinds.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Net profit up 22.2% YoY, strong quarter with margin expansion
Revenue
Revenue grew 18.1% YoY to ₹21,606 Cr, with sequential growth of 2.8%. Other income was minimal at ₹11 Cr.
Profitability
PAT at ₹5,553 Cr rose 22.2% YoY and 36.6% QoQ. EPS improved to ₹8.78 from ₹7.21. PBT margin remained healthy.
Margins
Financing margin expanded to 35% (vs 32% YoY, 28% QoQ), indicating better NIM management.
Cash Flow
Not applicable for financial companies.
Balance Sheet
Total assets stood at ₹559,952 Cr. Reserves at ₹113,377 Cr. ROE at 18.2% reflects efficient capital use.
Key Risks
Key risks include potential NIM compression from rising competition, asset quality trends in unsecured loans, and regulatory scrutiny on NBFCs.
Outlook
Sustained loan growth and stable margins could support earnings. However, macroeconomic headwinds and credit cost normalization remain watch points.
Generated by AI · Mar 2026 results · Not investment advice
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