Bajaj Finance reported a 29% increase in consolidated net profit for the second quarter of the 2026-27 financial year, reaching ₹6,367 crore. Despite facing margin pressure, the company showed strong growth in assets and improved asset quality during this period.
- Net profit rose 29% year-on-year to ₹6,367 crore in Q2 FY27.
- Net interest income increased 24% to ₹13,335 crore.
- Assets under management (AUM) grew 26% to ₹5.85 lakh crore.
- Gross non-performing assets (NPAs) declined to 1.06%.
- Analysts expect Bajaj Finance to offset margin pressures and maintain strong returns.
What were Bajaj Finance's key financial results in Q2 FY27?
In Q2 FY27, Bajaj Finance's consolidated net profit increased by 29% compared to the same quarter last year, reaching ₹6,367 crore. The net interest income (NII) grew by 24% to ₹13,335 crore. The company's assets under management (AUM) stood at ₹5.85 lakh crore, marking a 26% year-on-year increase. Additionally, the new loan book expanded by 11% to 13.45 million loans.
How did Bajaj Finance's asset quality perform?
The company's asset quality improved during the quarter. Gross non-performing assets (NPAs) decreased from 1.24% to 1.06% of gross loans. Net NPAs, which represent bad loans after provisions, also declined from 0.6% to 0.42%. The net slippage ratio, indicating new bad loans, fell by 110 basis points year-on-year, reflecting strong credit management.
What challenges did Bajaj Finance face regarding margins?
Bajaj Finance experienced margin pressure due to a rising interest rate environment. The management indicated marginal headwinds on net interest margins (NIM). This pressure is linked to higher funding costs, which can reduce profitability. As a result, analysts trimmed earnings per share (EPS) estimates by 2-3% for the upcoming financial years.
How do analysts view Bajaj Finance's future growth and profitability?
Analysts remain optimistic about Bajaj Finance's ability to offset revenue challenges. They expect the company to maintain a return on assets (ROA) of 4.2% and a return on equity (ROE) of 19.9% over FY28 and FY29. The company’s growth guidance was upgraded to 26.27%, highlighting strong momentum across business segments. Analysts also noted ongoing initiatives such as using artificial intelligence to improve operating leverage and managing credit costs effectively.
What are Bajaj Finance's plans for capital and regulatory changes?
The management plans to raise equity capital to support strong growth and address leverage levels exceeding 5 times. They also intend to mitigate the impact of new insurance guidelines, although specific details were not provided. The capital raise is expected to positively influence growth and profitability.
How has Bajaj Finance's stock performed recently?
As of October 21, 2026, Bajaj Finance's stock was trading 3.34% lower at ₹925.35 per share. The stock declined 3% in the past week and 9% over the last month. Year-to-date, it has lost 5%. The share price reached a 52-week high of ₹1,176.40 on August 3, 2026, and a low of ₹787.90 on March 23, 2026. The company’s market capitalization stood at ₹5.76 lakh crore.
Frequently Asked Questions
Q: What caused the margin pressure for Bajaj Finance?
A: Margin pressure was mainly due to a rising interest rate environment, which increased funding costs and affected net interest margins.
Q: How did Bajaj Finance's asset quality change in Q2 FY27?
A: The company improved asset quality, with gross NPAs falling to 1.06% and net NPAs decreasing to 0.42% of loans.
Q: What growth rate does Bajaj Finance expect going forward?
A: Bajaj Finance upgraded its growth guidance to 26.27%, reflecting strong business momentum across segments.
Q: Will Bajaj Finance raise capital soon?
A: Yes, the company plans to raise equity capital to support growth and manage leverage levels.
