Bajaj Finance Limited (BFL) has announced its financial results for the first quarter of fiscal year 2026, showcasing robust growth across key metrics. The company reported a consolidated profit after tax of ₹4,765.00 crore, marking a 22% increase compared to the same period last year.

Strong Asset Growth and Customer Expansion

BFL's consolidated assets under management (AUM) grew by 25% year-on-year, reaching ₹441,450.00 crore as of June 30, 2025. This significant growth was accompanied by a 21% expansion in the company's customer franchise, which now stands at 106.51 million. During Q1 FY26, Bajaj Finance added 4.69 million new customers to its base.

Financial Performance Highlights

Asset Quality and Capital Adequacy

The company maintained a strong asset quality profile with Gross NPA and Net NPA at 1.03% and 0.50% respectively, as of June 30, 2025. The provisioning coverage ratio on stage 3 assets stood at 52%.

Bajaj Finance's capital position remained robust, with a capital adequacy ratio (CRAR) of 21.96%, including Tier-I capital of 21.19%.

Subsidiary Performance

• Bajaj Housing Finance Limited (BHFL): Reported a 21% increase in profit after tax, reaching ₹583.00 crore for Q1 FY26. Its assets under management grew by 24% to ₹120,420.00 crore.

• Bajaj Financial Securities Limited (BFinsec): Saw a 37% rise in profit after tax, amounting to ₹41.00 crore for the quarter.

Corporate Actions and Leadership Changes

During the quarter, Bajaj Finance completed a subdivision of its shares, reducing the face value from ₹2 to ₹1 per fully paid equity share. The company also issued 4 fully paid bonus equity shares for every 1 fully paid equity share.

In a significant leadership change, Anup Saha resigned as MD and Director of BFL, effective July 21, 2025. The Board entrusted Rajeev Jain, previously Executive Vice Chairman, with the responsibilities of managing the company, re-designating him as Vice Chairman and Managing Director until March 31, 2028.

Credit Ratings

Bajaj Finance continues to enjoy the highest credit ratings from various agencies:

• AAA/Stable for long-term debt programme from CRISIL, ICRA, CARE, and India Ratings
• A1+ for short-term debt programme
• AAA (Stable) for fixed deposits programme from CRISIL and ICRA

The company has also been assigned international ratings, including BBB-/Positive long-term issuer rating from S&P Global Ratings and Baa3/P-3 long-term and short-term foreign and local currency issuer ratings with a stable outlook from Moody's.

Bajaj Finance's strong Q1 FY26 results demonstrate its continued growth trajectory and resilience in the financial services sector.

Bajaj Finance Limited, one of India's leading non-banking financial companies, has reported robust performance, with its Assets Under Management (AUM) growing 25% year-on-year to ₹441,450 crore. The company's Profit After Tax (PAT) increased by 22% to ₹4,765 crore, surpassing earlier reported figures.

Strong Growth in Customer Base and New Loans

Bajaj Finance demonstrated significant expansion in its customer base, adding 4.69 million new customers during the quarter. This brought the total customer franchise to an impressive 106.51 million. The company also booked 13.49 million new loans, indicating strong demand for its financial products.

Financial Highlights

Credit Costs and Asset Quality

Despite the strong growth, credit costs remained elevated at 2.02% of average assets under finance. Loan losses and provisions increased by 26% to ₹2,120.00 crore. The company's asset quality showed some pressure with Net Non-Performing Assets (NPA) increasing to 0.50% from 0.38% in the previous year, while Gross NPA stood at 1.03%.

Operational Efficiency and Capital Adequacy

Bajaj Finance maintained a strong capital adequacy ratio of 21.96%. The company also improved its operational efficiency, with the operating expense to income ratio at 32.70%.

Leadership Changes

The quarter saw significant leadership changes within the company. Anup Saha resigned as Managing Director, while Rajeev Jain was redesignated as Vice Chairman and Managing Director.

Subsidiary Performance

Bajaj Housing Finance, a subsidiary of Bajaj Finance, showed impressive growth with its AUM increasing by 24% to ₹120,420.00 crore. The subsidiary also maintained healthy asset quality metrics.

Market Implications

Bajaj Finance's strong quarterly results, particularly the substantial growth in AUM and PAT, are likely to be viewed positively by investors. The company's ability to grow its customer base and maintain operational efficiency, despite elevated credit costs, demonstrates its resilience in the competitive financial services sector.

However, the increase in NPAs and credit costs may warrant attention from analysts and investors. The market will be keen to see how the company addresses these challenges while maintaining its growth trajectory in the coming quarters.

Investors will also be watching closely to see how the recent leadership changes impact the company's strategy and performance going forward.