Bajaj Finance has reported significant growth in its customer base, reaching 115.40 million customers by December 31, 2025. This represents a substantial increase from the 97.12 million customers recorded by December 31, 2024, demonstrating the company's strong customer acquisition capabilities and market expansion strategy.

Customer Base Growth Performance

The financial services company added 4.76 million new customers during the third quarter of FY26, contributing to the overall annual growth. This quarterly addition reflects the company's continued momentum in expanding its reach across various customer segments and financial products.

Market Expansion Strategy

The substantial customer base expansion of 18.28 million customers over the year indicates Bajaj Finance's successful penetration into new markets and customer segments. The company's ability to consistently add millions of customers quarterly demonstrates its robust distribution network and product appeal across diverse demographics.

Business Implications

This customer growth trajectory positions Bajaj Finance favorably in the competitive financial services landscape. The addition of 4.76 million customers in a single quarter suggests strong operational efficiency in customer onboarding processes and effective marketing strategies. The expanded customer base provides a larger foundation for cross-selling opportunities and revenue generation across the company's comprehensive financial products portfolio.

Bajaj Finance , one of India's leading non-banking financial companies (NBFCs), has revised its growth projections for the upcoming fiscal year, citing increased stress in the Small and Medium Enterprise (SME) and captive two-wheeler and three-wheeler segments. This adjustment comes as the company navigates through a challenging economic landscape marked by rising non-performing assets (NPAs) and sector-specific pressures.

Key Financial Metrics

The company reported an increase in its gross and net NPA ratios as of September 30, 2025:

This rise in NPAs indicates growing stress in Bajaj Finance's loan portfolio, particularly in the SME sector.

Revised Growth Outlook

In response to these challenges, Bajaj Finance has taken several strategic steps:

1. Reduced unsecured MSME volumes by 25%
2. Adjusted growth expectations for FY26 to 22-23%, down from previous projections
3. Anticipates credit costs to be at the upper end of the 1.85-1.95% range

The company now expects growth to stabilize at 10-12% in FY26, reflecting a more conservative outlook given the current market conditions.

Business Performance

Despite the headwinds, Bajaj Finance has shown resilience in certain areas:

• New loans booked during H1FY26 grew by 24% to 25.66 million
• Assets under Management (AUM) increased by 24% to ₹4.62 lakh crore

Market Performance and Analyst Views

The stock has demonstrated strong performance over the past year:

• 49% returns over one year
• Significantly outperformed broader market indices (Nifty: 7%, Sensex: 6%)

However, brokerage opinions are mixed:

• Motilal Oswal maintains a 'Neutral' rating with a target price of ₹1,160
• Axis Securities retains a 'Buy' rating, setting a target of ₹1,200

Strategic Initiatives

Bajaj Finance is embarking on a transformation journey dubbed 'BFL 3.0 – A FINAI Company'. This strategy aims to:

• Embed AI across all processes
• Accelerate growth and enhance customer engagement
• Improve productivity and reduce costs

The company expects to implement these FINAI capabilities over the next 12-18 months, potentially creating a sustainable growth cycle for the next 7-8 years.

Conclusion

While Bajaj Finance faces near-term challenges, particularly in the SME and two/three-wheeler segments, its strategic initiatives and strong market position suggest a cautious outlook. The company's ability to navigate through these headwinds while implementing its FINAI strategy will be crucial in maintaining its growth trajectory and market leadership in the coming years.

Investors and market watchers will be keenly observing how Bajaj Finance balances its growth ambitions with prudent risk management in this evolving economic landscape.