Bajaj Finance Limited (BFL) has reported a strong start to the fiscal year, with a 22% year-on-year increase in consolidated profit after tax for the first quarter. The company's financial results, released on July 24, showcase robust growth across key metrics and outline ambitious plans for future expansion.

Financial Highlights

For Q1, Bajaj Finance posted a consolidated profit after tax of ₹4,765.00 crore, up from ₹3,912.00 crore in the same quarter last year. The company's assets under management (AUM) grew by 25% to reach ₹441,450.00 crore as of June 30, compared to ₹354,192.00 crore a year earlier.

Key financial indicators for Q1 include:

• Net interest income: ₹10,227.00 crore (up 22% YoY)
• Net total income: ₹12,610.00 crore (up 21% YoY)
• Pre-provisioning operating profit: ₹8,487.00 crore (up 22% YoY)
• New loans booked: 13.49 million (up 23% YoY)

Customer Franchise and Business Growth

Bajaj Finance continues to expand its customer base significantly. The company's customer franchise stood at 106.51 million as of June 30, representing a 21% increase from 88.11 million a year ago. During Q1, BFL added 4.69 million new customers to its franchise.

Asset Quality and Capital Adequacy

The company maintained a strong asset quality profile:

Bajaj Finance's capital position remains robust, with a capital adequacy ratio (CRAR) of 21.96% as of June 30, including Tier-I capital of 21.19%.

Strategic Developments

During the quarter, Bajaj Finance completed a significant corporate action. On June 16, the company subdivided its shares, reducing the face value from ₹2.00 to ₹1.00 per fully paid equity share. This was followed by a bonus issue on June 17, where shareholders received four fully paid bonus equity shares for every one equity share held.

Management Changes

In a notable leadership change, Anup Saha resigned as MD and Director of BFL on July 21. To ensure continuity, the Board re-designated Rajeev Jain as Vice Chairman and Managing Director, entrusting him with the company's management responsibilities until March 31, 2028.

Future Outlook

Bajaj Finance has set an ambitious target to reach 130 million customers by FY29. The company plans to achieve this growth through technology-driven cross-selling to affluent customers, targeting 26% deposit growth, and monetizing its platform through Bajaj Pay. These initiatives are part of BFL's strategy to drive its next phase of scale and profitability.

Rajeev Jain, Vice Chairman and Managing Director of Bajaj Finance, commented on the results: "We have delivered a strong start with robust growth across our key metrics. Our focus on customer acquisition, coupled with our strategic initiatives in technology and cross-selling, positions us well to achieve our long-term goals."

As Bajaj Finance continues to navigate the evolving financial landscape, its strong Q1 performance and strategic initiatives demonstrate the company's resilience and growth potential in the coming years.

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.