Bajaj Finance Limited Q3 FY2026 Results
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Overview
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Detailed Analysis
Sentiment
Mixed
Executive Summary
Bajaj Finance Q3 FY26: Revenue ₹21,214.58 Cr (vs ₹18,058.32 Cr YoY), PAT ₹4,066.01 Cr (vs ₹4,308.19 Cr YoY)
In Q3 FY26 consolidated total income was ₹21,214.58 Cr, up from ₹18,058.32 Cr in Q3 FY25, while consolidated PAT was ₹4,066.01 Cr versus ₹4,308.19 Cr in Q3 FY25. Management implemented an accelerated ECL provision of ₹1,406 Cr and took a one-time charge of ₹265.22 Cr for New Labour Codes in Q3 FY26, which reduced reported profitability. Assets under management expanded to ₹484,477 Cr as of 31 December 2025, reflecting 22% YoY growth. The company emphasised balance-sheet resilience, introducing LGD floors and strengthened provisioning while maintaining CRAR at 21.45%.Total income (Consolidated, Q3 FY26)
₹21,214.58 Crvs ₹18,058.32 Cr in Q3 FY25
Profit after tax (Consolidated, Q3 FY26)
₹4,066.01 Crvs ₹4,308.19 Cr in Q3 FY25
Assets under management (AUM, Consolidated as of 31 Dec 2025)
₹484,477 Crvs ₹398,043 Cr in Q3 FY25
Net interest income (Consolidated, Q3 FY26)
₹11,317 Crvs ₹9,382 Cr in Q3 FY25
Pre-provisioning operating profit (Consolidated, Q3 FY26)
₹9,319 Crvs ₹7,805 Cr in Q3 FY25
Accelerated ECL provision (Consolidated, Q3 FY26)
₹1,406 Crvs ₹0 Cr in Q3 FY25
Profit before tax (Consolidated, Q3 FY26)
₹5,431.10 Crvs ₹5,765.42 Cr in Q3 FY25
Gross NPA (Consolidated as of 31 Dec 2025)
1.21%vs 1.12% in Q3 FY25
Key Highlights
10
Consolidated AUM grew to ₹484,477 Cr as of 31 December 2025, up from ₹398,043 Cr in Q3 FY25, driven by higher new loans booked and growth across consumer and commercial segments.
Management increased provisioning framework by implementing a minimum LGD floor, resulting in an accelerated ECL provision of ₹1,406 Cr in Q3 FY26 to strengthen balance-sheet resilience.
Net interest income rose to ₹11,317 Cr in Q3 FY26 from ₹9,382 Cr in Q3 FY25, reflecting higher interest income of ₹18,656.49 Cr in the quarter.
Net total income increased to ₹13,875 Cr in Q3 FY26 from ₹11,673 Cr in Q3 FY25, supporting a pre-provisioning operating profit of ₹9,319 Cr (+19% YoY).
Consolidated profit before tax declined to ₹5,431.10 Cr in Q3 FY26 from ₹5,765.42 Cr in Q3 FY25 primarily due to the ₹1,406 Cr accelerated ECL and a one-time charge of ₹265.22 Cr for New Labour Codes.
Customer franchise expanded to 115.40 million in Q3 FY26 from 97.12 million in Q3 FY25, indicating continued customer acquisition and scale benefits for cross-sell.
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Key Highlights
10
Consolidated AUM grew to ₹484,477 Cr as of 31 December 2025, up from ₹398,043 Cr in Q3 FY25, driven by higher new loans booked and growth across consumer and commercial segments.
Management increased provisioning framework by implementing a minimum LGD floor, resulting in an accelerated ECL provision of ₹1,406 Cr in Q3 FY26 to strengthen balance-sheet resilience.
Net interest income rose to ₹11,317 Cr in Q3 FY26 from ₹9,382 Cr in Q3 FY25, reflecting higher interest income of ₹18,656.49 Cr in the quarter.
Net total income increased to ₹13,875 Cr in Q3 FY26 from ₹11,673 Cr in Q3 FY25, supporting a pre-provisioning operating profit of ₹9,319 Cr (+19% YoY).
Consolidated profit before tax declined to ₹5,431.10 Cr in Q3 FY26 from ₹5,765.42 Cr in Q3 FY25 primarily due to the ₹1,406 Cr accelerated ECL and a one-time charge of ₹265.22 Cr for New Labour Codes.
Capital adequacy ratio (CRAR) was 21.45% and Tier-1 capital was 20.60% as of 31 December 2025, showing strong capital buffers.
Customer franchise expanded to 115.40 million in Q3 FY26 from 97.12 million in Q3 FY25, indicating continued customer acquisition and scale benefits for cross-sell.
Operating expenses were ₹4,556 Cr in Q3 FY26 (consolidated) with operating expenses to net total income at 32.8% in Q3 FY26 versus 33.1% in Q3 FY25, indicating modest operating leverage.
Finance costs increased to ₹7,338.71 Cr in Q3 FY26 from ₹6,385.63 Cr in Q3 FY25, reflecting higher funding costs and scale of borrowings.
Provisioning coverage on stage-3 assets remained at 61% (consolidated) as of 31 December 2025, providing cushion against credit stress.
Guidance & Outlook
5
Management expects to maintain balance-sheet resilience by retaining strengthened ECL parameters and LGD floors across businesses, signalling a cautious provisioning stance going forward.
Company reiterated focus on AUM growth and customer franchise expansion; AUM before accelerated ECL provision grew 22% YoY to ₹485,883 Cr, indicating continued lending momentum.
Management will monitor finalisation of Central and State rules on New Labour Codes and adjust accounting/tax impacts as clarifications emerge, indicating potential for further one-time adjustments.
Company intends to preserve strong credit ratings and maintain asset cover for secured NCDs, supporting continued access to secured and unsecured debt markets for funding.
Operating cost discipline is expected to continue as operating expenses to net total income improved slightly to 32.8% in Q3 FY26, which could support incremental operating leverage if income growth sustains.
Risks & Concerns
6
The accelerated ECL provision of ₹1,406 Cr in Q3 FY26 indicates sensitivity of provisioning to parameter changes and could recur if macro signals weaken further.
One-time charge of ₹265.22 Cr for New Labour Codes in Q3 FY26 creates earnings volatility and further clarifications on rules may lead to additional liabilities.
Profit after tax fell to ₹4,066.01 Cr in Q3 FY26 from ₹4,308.19 Cr in Q3 FY25, showing that higher provisions and finance costs can compress reported profitability despite revenue growth.
Finance costs rose to ₹7,338.71 Cr in Q3 FY26 from ₹6,385.63 Cr in Q3 FY25, implying margin pressure if interest-earning asset yields do not expand commensurately.
Gross NPA increased to 1.21% in Q3 FY26 from 1.12% in Q3 FY25, suggesting early signs of asset quality deterioration that require monitoring.
Standalone gain on sale of BHFL shares (not reflected in consolidated exceptional items) and market disposals could introduce timing differences between standalone and consolidated earnings.
AI-generated analysis. May contain inaccuracies — verify against original sources.