Bajaj Finance Reports Q2 Net Profit Of ₹6,266 Crore, Up 28.5% YoY

Market snapshot: Bajaj Finance announced its Q2 financial performance, delivering a 28.5% year-on-year growth in consolidated net profit to ₹6,266 crore alongside a 22.8% surge in total operating revenue to ₹24,550 crore. Despite robust top-line momentum and steady loan additions, asset quality metrics registered a slight sequential increase, with Gross NPA reaching 1.33%.

Data Snapshot

• Consolidated Net Profit rose 28.5% YoY to ₹6,266 crore compared to ₹4,875 crore in the corresponding prior period.
• Consolidated Revenue grew 22.8% YoY to ₹24,550 crore versus ₹20,000 crore in Q2 of the previous fiscal.
• Gross NPA increased to 1.33% from 0.96% sequentially, while Net NPA rose to 0.53% from 0.39%.
• Assets Under Management (AUM) reached ₹5,84,624 crore, marking a 26% YoY expansion.

What's Changed

• Net profit increased to ₹6,266 crore from ₹4,875 crore YoY (≈28.5% expansion).
• Total revenue expanded to ₹24,550 crore from ₹20,000 crore YoY (≈22.8% growth).
• Gross NPA ticked up sequentially by 37 basis points to 1.33% from 0.96%.

Key Takeaways

• Top-line growth remains strong, driven by 26% YoY expansion in Assets Under Management to ₹5,84,624 crore.
• Bottom-line profitability expanded 28.5% YoY, reflecting operating leverage across retail lending verticals.
• Sequential asset quality pressure emerged with Gross NPA rising to 1.33% and Net NPA reaching 0.53%.
• Management reaffirmed long-term structural targets, maintaining profit growth guidance at 22-25% and Return on Equity of 19-21%.

SAHI Perspective

Bajaj Finance continues to demonstrate resilient structural compounding. While sequential uptick in non-performing assets warrants close tracking in unsecured retail and gold loan portfolios, strong customer franchise additions and robust AUM expansion provide high earnings visibility.

Market Implications

The earnings trajectory highlights strong credit demand across consumer and SME segments. Continued balance sheet expansion supports structural valuations for premium retail lenders, though short-term market attention may focus on credit cost trends.

Trading Signals

Market Bias: Bullish

Strong fundamental execution backed by 28.5% YoY profit growth to ₹6,266 crore and 26% AUM expansion supports a positive medium-term outlook despite minor sequential asset quality moderation.

Overweight: Consumer Finance, Retail Credit NBFCs

Trigger Factors:

• AUM growth momentum maintaining target band of 26-27%
• Stabilization of Stage 2 and Stage 3 assets in upcoming quarters
• Containment of net interest margin impact within projected 10-15 basis points

Time Horizon: Near-term (0-3 months)

Industry Context

India's retail non-banking finance sector benefits from healthy credit demand in urban and semi-urban centers. Diversified product offerings and digital customer acquisition pipelines enable leading franchises to maintain loan growth well above broader industry credit growth rates.

Key Risks to Watch

• Uptick in credit loss provisions if stress in unsecured consumer loans escalates
• Potential net interest margin reduction of 10-15 basis points from borrowing cost shifts

Recent Developments

In October 2026, Bajaj Finance reported provisional Q2 customer franchise expansion to 128.85 million with 13.45 million new loans booked during the quarter, as per official BSE regulatory filings.

Closing Insight

Bajaj Finance's underlying operational scale and customer franchise additions reinforce its leadership position in retail credit, balancing near-term asset quality monitorables against predictable long-term return metrics.

High Performance Trading with SAHI.