Bajaj Finance , one of India's leading non-banking financial companies, has reported a robust performance for the second quarter of fiscal year 2026. The company's consolidated profit after tax surged by 23% year-over-year to ₹4,948.00 crore, demonstrating strong financial health amid a growing customer base and expanding assets under management (AUM).

Key Financial Highlights

• Consolidated AUM grew by 24% to ₹462,261.00 crore as of September 30, 2025, compared to ₹373,924.00 crore in the same period last year.
• Net interest income increased by 22% to ₹10,785.00 crore in Q2 FY26.
• Net total income rose by 20% to ₹13,170.00 crore.
• Pre-provisioning operating profit saw a 21% increase, reaching ₹8,874.00 crore.
• The company maintained a healthy return on assets (ROA) of 4.5% and return on equity (ROE) of 19.1%.

Customer Franchise and New Loans

Bajaj Finance continued its strong momentum in customer acquisition and loan disbursements:

• The customer franchise expanded to 110.64 million as of September 30, 2025, a 20% increase from 92.09 million a year ago.
• New loans booked during the quarter stood at 12.17 million, up 26% from 9.69 million in Q2 FY25.
• The company added 4.13 million new customers in Q2 FY26.

Asset Quality and Capital Adequacy

The company reported the following asset quality metrics:

• Gross NPA ratio stood at 1.24% as of September 30, 2025, compared to 1.06% a year ago.
• Net NPA ratio was 0.60%, up from 0.46% in the previous year.
• Provisioning coverage ratio on stage 3 assets remained strong at 52%.
• Capital adequacy ratio (including Tier-II capital) was robust at 21.23%, with Tier-I capital at 20.54%.

Subsidiary Performance

Bajaj Housing Finance Ltd (BHFL), a subsidiary of Bajaj Finance, also reported strong growth:

• BHFL's AUM grew by 24% to ₹126,749.00 crore.
• Profit after tax increased by 18% to ₹643.00 crore in Q2 FY26.
• BHFL maintained excellent asset quality with a Gross NPA of 0.26% and Net NPA of 0.12%.

Strategic Developments

The company highlighted several strategic initiatives:

• Implementation of FINAI (Financial AI) across business lines, expected to yield cost and productivity benefits in the next 12-18 months.
• Identification of 123 high-impact AI use cases, with 80 planned to go live by February 2026.
• Deployment of AI-powered voice and text bots for various services, including loan disbursements and customer service resolutions.

Festive Season Performance

Bajaj Finance reported strong performance during the festive season (Navratri to Diwali):

• Disbursed 6.3 million consumer loans, marking a 27% growth in volume and 29% in value compared to the previous year.
• Added 2.3 million new customers, with approximately 52% being new-to-credit customers.
• Observed a premiumization trend, particularly in TV financing, with loans for 40-inch and above screens accounting for 71% of total TV financing.

Management Commentary

Rajeev Jain, Vice Chairman and Managing Director of Bajaj Finance, stated, "We have delivered a good quarter on volume, AUM, Opex, profitability, ROA, and ROE. While credit costs remained elevated, our strategic focus on AI implementation and customer-centric innovations positions us well for sustained growth."

Bajaj Finance's strong Q2 FY26 results reflect its resilient business model and strategic initiatives in technology and customer acquisition. The company's focus on AI implementation and expanding its digital capabilities is expected to drive further efficiencies and growth in the coming quarters.

Bajaj Finance Limited has reported a robust financial performance for the second quarter of fiscal year 2026 (Q2 FY26), with significant growth in key metrics and ambitious growth targets.

Financial Highlights

• Consolidated profit after tax increased by 23% year-over-year to ₹4,948.00 crore in Q2 FY26.
• Assets under management (AUM) grew by 24% to ₹462,261.00 crore as of September 30, 2025.
• Net interest income rose by 22% to ₹10,785.00 crore.
• Net total income increased by 20% to ₹13,170.00 crore.

Operational Performance

• The company booked 12.17 million new loans during the quarter, up 26% from Q2 FY25.
• Customer franchise expanded to 110.64 million, a 20% increase year-over-year.
• Loan losses and provisions increased by 19% to ₹2,269.00 crore.

Asset Quality and Capital Adequacy

• Gross NPA ratio stood at 1.24% as of September 30, 2025, compared to 1.06% a year ago.
• Net NPA ratio was 0.60%, up from 0.46% in the previous year.
• Capital adequacy ratio (including Tier-II capital) remained strong at 21.23%, with Tier-I capital at 20.54%.

Segment Performance

Subsidiary Performance

Bajaj Housing Finance Limited

• AUM grew by 24% to ₹126,749.00 crore.
• Profit after tax increased by 18% to ₹643.00 crore in Q2 FY26.

Bajaj Financial Securities Limited

• Assets under finance grew by 40% to ₹7,597.00 crore.
• Profit after tax rose by 27% to ₹47.00 crore.

Future Outlook and Strategy

• Bajaj Finance has provided guidance for sustained 26-28% Assets Under Management (AUM) growth.
• The company is focusing on consumer, SME, and commercial segments for growth.
• Expansion of digital ecosystem through Bajaj Pay, app marketplace, and AI-based credit engines.
• Targets maintaining Return on Assets (RoA) of 3.6-3.8% and Return on Equity (RoE) above 20%.
• Plans a ₹20,000 crore capital infusion over three years.

Management Commentary

Rajeev Jain, Vice Chairman and Managing Director, stated, "We have delivered a good quarter on volume, AUM, Opex, profitability, ROA and ROE. Credit cost remained elevated."

The company's performance reflects its continued focus on growth across various business segments while maintaining asset quality. The significant increase in new loans booked and customer franchise growth indicates strong market demand and effective customer acquisition strategies.

Bajaj Finance's robust capital position, diversified product portfolio, and strategic growth initiatives position it well for sustained growth in the evolving financial services landscape.