Bajaj Finance Limited Q2 FY2027 Results
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Overview
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Detailed Analysis
Sentiment
Positive
Executive Summary
Company Q2 FY27: Revenue ₹24,546.37 Cr (vs ₹19,990.42 Cr YoY), PAT ₹6,366.57 Cr (vs ₹4,947.76 Cr YoY)
Bajaj Finance Limited reported consolidated Q2 FY27 revenue of ₹24,546.37 Cr and consolidated profit after tax of ₹6,366.57 Cr, up vs Q2 FY26; net interest income rose materially. Assets under management expanded to ₹584,624 Cr, supporting loan growth and NII expansion. The quarter included a prudent macro-economic provision of ₹337 Cr; management also approved a QIP/Preferential raise. Capital adequacy remained strong at 20.33%, providing headroom for growth.Total revenue (consolidated)Page 14
₹24,546.37 Crvs ₹19,990.42 Cr in Q2 FY26
Profit after tax (consolidated)Page 14
₹6,366.57 Crvs ₹4,947.76 Cr in Q2 FY26
Profit before tax (consolidated)Page 23
₹8,537.20 Crvs ₹6,608.13 Cr in Q2 FY26
Assets under management (AUM) as of 30 Sep 2026 (consolidated)Page 20
₹584,624 Crvs ₹462,261 Cr as of 30 Sep 2025
Net interest income (consolidated)Page 23
₹13,335 Crvs ₹10,785 Cr in Q2 FY26
Net total income (consolidated)Page 23
₹15,974 Crvs ₹12,982 Cr in Q2 FY26
Gross NPA (consolidated) as of 30 Sep 2026Page 19
1.06%vs 1.24% as of 30 Sep 2025
Annualised ROE (consolidated) 02Page 20
20.6%vs 19.1% in 02 FY26
Key Highlights
9
Consolidated AUM grew 26% YoY to ₹584,624 Cr as of 30 September 2026, driven by continued book growth across mortgages and retail products
Net interest income rose to ₹13,335 Cr in Q2 FY27, up from ₹10,785 Cr in Q2 FY26, reflecting higher interest income from a larger asset base
Pre-provision operating profit expanded to ₹10,699 Cr in Q2 FY27 and PBT reached ₹8,537.20 Cr, supporting a 29% YoY PAT increase
Loan losses and provisions were ₹2,166 Cr in Q2 FY27, including a prudent macro-economic provision of ₹337 Cr disclosed by management
Gross NPA improved to 1.06% and Net NPA to 0.42% consolidated as of 30 September 2026, indicating continued asset-quality improvement
Management approved raising capital via QIP up to ₹11,700 Cr and preferential warrants up to ₹5,800 Cr to fund growth and maintain capital buffers
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Key Highlights
9
Consolidated AUM grew 26% YoY to ₹584,624 Cr as of 30 September 2026, driven by continued book growth across mortgages and retail products
Net interest income rose to ₹13,335 Cr in Q2 FY27, up from ₹10,785 Cr in Q2 FY26, reflecting higher interest income from a larger asset base
Pre-provision operating profit expanded to ₹10,699 Cr in Q2 FY27 and PBT reached ₹8,537.20 Cr, supporting a 29% YoY PAT increase
Loan losses and provisions were ₹2,166 Cr in Q2 FY27, including a prudent macro-economic provision of ₹337 Cr disclosed by management
Gross NPA improved to 1.06% and Net NPA to 0.42% consolidated as of 30 September 2026, indicating continued asset-quality improvement
Management approved raising capital via QIP up to ₹11,700 Cr and preferential warrants up to ₹5,800 Cr to fund growth and maintain capital buffers
Operating expenses remained well controlled at 33.0% of net total income on consolidated basis in Q2 FY27
Consolidated liquidity and funding mix includes ₹69,754 Cr deposits and diversified borrowings; secured NCDs are maintained with asset cover as required
Bajaj Housing Finance (subsidiary) AUM grew 25% YoY to ₹158,205 Cr with PBT up 18% YoY, contributing materially to consolidated earnings
Guidance & Outlook
4
Board approved QIP and preferential issue proposals to raise up to ₹11,700 Cr and ₹5,800 Cr respectively to support growth and capitalisation
Management flagged continued focus on loan book growth across retail and mortgages, backed by strong capital adequacy (CRAR 20.33%)
Company will maintain prudent provisioning posture, given the explicit ₹337 Cr macro-economic provision taken in Q2 FY27
Operationally, management expects continued NII expansion from AUM growth while keeping operating expenses near current NTI ratio (~33%)
Risks & Concerns
5
Higher provisions
Q2 FY27 includes a one-off prudent macro-economic provision of ₹337 Cr which elevated loan loss charge
“includes a prudent management and macro-economic provisions of< 337 crore.” — page 21
Funding and asset-cover dependence on secured NCDs
AUM growth and loan book expansion raise portfolio susceptibility to macro shocks despite current low GNPA; credit cycle deterioration could pressure provisions
Concentration of capital-raising reliance on large QIP/preferential issuance could dilute existing equity if executed; shareholders approval pending
Provision coverage remains critical
AI-generated analysis. May contain inaccuracies — verify against original sources.