Bajaj Finance , a leading non-banking financial company (NBFC) in India, has released its operational performance update for the second quarter of the fiscal year 2025-26, showcasing strong growth across key metrics.

Assets Under Management (AUM) Growth

Bajaj Finance reported a significant year-on-year (YoY) growth in its Assets Under Management (AUM):

The company added approximately ₹20,800 crore to its AUM during the quarter, indicating robust business expansion.

Deposit Book and Customer Base

The company's deposit book and customer franchise also showed positive trends:

New Loan Bookings

Bajaj Finance witnessed a substantial increase in new loan bookings:

Market Response

Despite the strong operational performance, Bajaj Finance shares closed flat at ₹989.65 on Friday, suggesting that the market had already priced in these expectations.

Analyst Perspective

Citi, a prominent financial services firm, maintained its target price for Bajaj Finance at ₹9,500. They noted that while the consolidated AUM growth of 23.6% was in line with estimates, it showed a moderation compared to previous periods:

• Q2 FY26: 23.6% YoY growth
• Q1 FY26: 24.6% YoY growth
• Q2 FY25: 28.8% YoY growth

This slight deceleration in growth rate might be a point of interest for investors and analysts in the coming quarters.

In conclusion, Bajaj Finance's Q2 FY26 operational update demonstrates the company's continued strong performance in key areas such as AUM growth, customer acquisition, and loan bookings. However, the marginal slowdown in AUM growth rate and the market's muted response suggest that investors may be looking for further catalysts to drive the stock price higher.

Bajaj Finance and its subsidiary Bajaj Housing Finance have reported strong growth in their second quarter performance, with significant increases across key metrics.

Bajaj Finance Limited Performance

Customer Base and New Loans

Bajaj Finance's customer franchise reached 110.64 million as of September 30, growing from 92.09 million in the previous year, with an addition of 4.13 million customers during the quarter. New loans booked increased 26% to 12.17 million compared to 9.69 million in the same quarter of the previous year.

Assets Under Management and Deposits

Assets under management grew 24% to ₹462,250.00 crore from ₹373,924.00 crore year-over-year, with quarterly growth of ₹20,800.00 crore. The deposits book stood at ₹69,750.00 crore versus ₹66,131.00 crore in the previous year.

Bajaj Housing Finance Performance

Robust Disbursement Growth

Bajaj Housing Finance announced gross disbursements of ₹15,900.00 crore in Q2, marking a substantial 32% increase from ₹12,014.00 crore in the corresponding quarter of the previous year. This growth in disbursements indicates a strong demand for housing finance and the company's ability to capitalize on market opportunities.

Assets Under Management Expansion

Bajaj Housing Finance's assets under management (AUM) grew impressively, showing a 24% year-on-year increase. As of September 30, the AUM stood at ₹126,740.00 crore, up from ₹102,569.00 crore in the previous year. This growth reflects the company's expanding market presence and customer base.

Loan Asset Growth

The company's loan assets also saw significant growth, reaching ₹113,050.00 crore compared to ₹89,878.00 crore a year earlier. This increase in loan assets aligns with the overall growth trend observed in the company's financial metrics.

Asset Quality

Bajaj Housing Finance maintained a robust asset quality profile:

• Gross Non-Performing Assets (NPA) ratio: 0.30%
• Net NPA ratio: 0.13%
• Provision coverage ratio for Stage 3 assets: 56%

These figures indicate the company's effective risk management and strong underwriting practices.

Financial Highlights for Bajaj Housing Finance

Both Bajaj Finance and Bajaj Housing Finance have demonstrated strong performance in Q2, characterized by significant growth across various financial metrics. This robust growth reflects the companies' solid positions in their respective sectors and their ability to capitalize on market opportunities while maintaining asset quality.

Note: The figures reported by Bajaj Finance are provisional and subject to statutory auditor review.