BAJFINANCE - Bajaj Finance
📢 Recent Corporate Announcements
Bajaj Finance has successfully allotted 2,50,000 Secured Redeemable Non-Convertible Debentures (NCDs) to raise Rs. 2,500.20 crore. The fundraise is split into two options: Rs. 1,000.01 crore at a 7.40% coupon and Rs. 1,500.19 crore at a 7.55% coupon. These instruments have tenures of approximately 3 years and 5 years respectively. The capital raised will likely support the company's lending operations and strengthen its balance sheet.
- Total allotment of 2,50,000 NCDs with a face value of Rs. 1 Lakh each aggregating to Rs. 2,500.20 crore.
- Option I: Rs. 1,000.01 crore raised at 7.40% p.a. with a tenure of 1,116 days maturing in March 2029.
- Option II: Rs. 1,500.19 crore raised at 7.55% p.a. with a tenure of 1,826 days maturing in February 2031.
- The debentures are secured by a first pari-passu charge on book debts and loan receivables with at least 1.0x cover.
- The securities are proposed to be listed on the Wholesale Debt Market Segment of BSE Limited.
Bajaj Finance has successfully allotted 50,000 secured redeemable non-convertible debentures (NCDs) on a private placement basis to raise Rs 500 crore. The NCDs carry a fixed coupon rate of 7.31% per annum with a tenure of 729 days, maturing on February 11, 2028. This fundraise is part of the company's regular debt capital management to support its ongoing lending business. The issue is secured by a first pari-passu charge on the company's loan receivables with a minimum cover of 1.00 time.
- Total fundraise of Rs 500 crore through the allotment of 50,000 NCDs
- Fixed coupon rate of 7.31% p.a. with annual interest payment frequency
- Tenure of 729 days with maturity scheduled for February 11, 2028
- Secured by first pari-passu charge on book debts and loan receivables
- NCDs to be listed on the Wholesale Debt Market Segment of BSE Limited
Bajaj Finance reported a robust core performance for Q3 FY26, with core AUM growing 22% YoY and the customer franchise expanding to 115 million. The company proactively took a one-time accelerated ECL provision of ₹1,406 crore to implement LGD floors, significantly raising Stage 1 PCR to 98 bps for long-term resilience. While reported PAT was impacted by these provisions and a ₹265 crore labor code charge, it was partially offset by a ₹1,416 crore gain from selling a 2% stake in BHFL. Asset quality remains a highlight with Net NPA at 0.47% and steady NIMs.
- Core AUM grew by 22% YoY (₹23,622 crore) with total customer franchise reaching 115 million.
- Proactive one-time accelerated ECL provision of ₹1,406 crore increased Stage 1 PCR from 74 bps to 98 bps.
- Core PAT grew 23% YoY, supported by steady NIMs and a sequential 7 bps improvement in cost of funds to 7.45%.
- Asset quality remains strong with GNPA at 1.21% and NNPA at 0.47%, while Stage 2 and 3 assets saw a net decrease of ₹93 crore.
- Management guided for full-year AUM growth of 22-23% despite a temporary slowdown in the MSME segment.
Bajaj Finance Limited has concluded its conference call for the quarter ended December 31, 2025, held on February 3, 2026. The company has officially released the audio recording of the session on its website under the 'Quarterly Earnings Call' section. This disclosure is part of the mandatory reporting under SEBI Listing Regulations. Investors can now review management's detailed discussion on the company's financial performance and strategic direction.
- Earnings conference call for Q3 FY26 conducted on February 3, 2026
- Audio recording link provided for public access on the corporate website
- Complies with Regulation 30 of SEBI (LODR) Regulations, 2015
- Presentation for the same quarter was also submitted to exchanges on the same day
Bajaj Finance reported a strong core performance for Q3 FY26 with adjusted PAT growing 23% YoY to ₹5,317 crore, although reported PAT dipped 6% due to one-time accelerated provisions and labor code charges. Assets Under Management (AUM) grew 22% YoY to ₹484,477 crore, supported by a massive customer franchise of 115.4 million. Asset quality remains stable with NNPA at 0.47%, and the company is aggressively implementing its 'FINAI' transformation to drive future operating efficiencies. Subsidiaries BHFL and BFSL also showed robust growth, with BHFL AUM rising 23% and BFSL PAT surging 74%.
- Core PAT grew 23% YoY to ₹5,317 Cr, excluding a ₹1,406 Cr accelerated ECL provision and ₹265 Cr labor code charge.
- Consolidated AUM increased by 22% YoY to reach ₹484,477 Cr, with 13.90 million new loans booked in Q3.
- Customer franchise expanded to 115.40 million, adding 4.76 million new customers during the quarter.
- Asset quality remained healthy with GNPA at 1.21% and NNPA at 0.47%, while the provisioning coverage ratio stands at 61%.
- Bajaj Housing Finance (BHFL) reported 23% AUM growth and 21% PAT growth, maintaining superior asset quality with NNPA at 0.11%.
Bajaj Finance reported a standalone Profit After Tax (PAT) of ₹4,580.52 crore for Q3 FY26, marking a 23.6% YoY increase, though this was significantly bolstered by a net exceptional gain of ₹1,166.38 crore. Core operational performance showed signs of stress as Profit Before Exceptional Items actually declined by 4.1% YoY to ₹4,771.63 crore. A significant concern for investors is the sharp 77.7% YoY spike in impairment charges (provisions), which rose to ₹3,568.92 crore. While total revenue from operations grew by 17.5% YoY to ₹18,067.89 crore, rising finance costs and credit costs are weighing on the bottom line.
- Standalone PAT grew 23.6% YoY to ₹4,580.52 crore, including a ₹1,416.38 crore gain from a subsidiary stake sale.
- Impairment on financial instruments (provisions) surged 77.7% YoY to ₹3,568.92 crore from ₹2,007.98 crore.
- Total revenue from operations increased 17.5% YoY to ₹18,067.89 crore, driven by higher interest and fee income.
- Profit before exceptional items and tax declined 4.1% YoY to ₹4,771.63 crore, indicating core margin pressure.
- Finance costs rose 14.4% YoY to ₹5,464.19 crore, reflecting higher borrowing costs in the current environment.
Bajaj Finance has successfully allotted 5,12,000 Secured Redeemable Non-Convertible Debentures (NCDs) on a private placement basis to raise ₹5,120 crore. The instruments carry a competitive coupon rate of 7.65% per annum with a long-term tenure of 10 years (3,650 days). The redemption is structured in a staggered manner, with 20% of the face value being repaid in 2034, 20% in 2035, and the remaining 60% in 2036. This fundraise strengthens the company's liquidity position and provides long-term capital to support its lending book growth.
- Total fundraise of ₹5,120 crore through the allotment of 5,12,000 NCDs at ₹1 lakh face value each
- Fixed coupon rate of 7.65% p.a. with annual interest payments starting January 2027
- Long-term tenure of 10 years with a staggered redemption schedule (20:20:60 ratio)
- Secured by a first pari passu charge on book debts and loan receivables with 1.10x security cover
- Debentures to be listed on the Wholesale Debt Market Segment of BSE Limited
Bajaj Finance Limited has scheduled its earnings conference call to discuss the financial results for the quarter ended December 31, 2025. The call is slated for February 3, 2026, at 6:00 PM IST and will be hosted by Morgan Stanley. Senior leadership, including Vice Chairman Rajeev Jain and CFO Sandeep Jain, will participate to provide insights into the company's performance. This is a standard post-results engagement for institutional investors and analysts to gauge the company's growth trajectory.
- Conference call for Q3 FY26 results scheduled for February 3, 2026, at 18:00 IST.
- Top management including VC & MD Rajeev Jain and CFO Sandeep Jain to lead the discussion.
- The event is hosted by Morgan Stanley with universal and international dial-in options provided.
- Discussion will focus on the financial performance for the nine-month period ending December 31, 2025.
Bajaj Finance Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by KFin Technologies Limited, confirms that no securities were received for dematerialization during the quarter ended December 31, 2025. As no securities were received, there were no instances of certificate mutilation or cancellation required. This is a standard procedural filing required for all listed companies in India.
- Compliance certificate submitted for the quarter ended December 31, 2025
- Issued by Registrar and Share Transfer Agent, KFin Technologies Limited
- Confirmed that zero securities were received for dematerialization during the quarter
- No certificates were mutilated or cancelled during the reporting period
Bajaj Finance Limited has been assigned an ESG rating of 70 by ESG Risk Assessments and Insights Limited as part of their annual assessment process. The company clarified that it did not formally engage the agency for this rating, which was prepared independently using data available in the public domain. This disclosure is part of the regulatory requirements under SEBI's Listing Obligations and Disclosure Requirements. ESG ratings are increasingly significant for institutional investors focusing on sustainable and responsible investment criteria.
- ESG Risk Assessments and Insights Limited assigned an ESG Rating of 70 to Bajaj Finance.
- The rating was determined through an independent annual assessment process based on public data.
- Bajaj Finance explicitly stated it did not engage the rating agency for this specific report.
- The disclosure was made on January 6, 2026, in compliance with SEBI Regulation 30.
Bajaj Finance reported a strong 22% YoY growth in Assets Under Management (AUM), reaching approximately ₹485,900 crore as of December 31, 2025. The customer franchise expanded significantly to 115.40 million, adding 4.76 million new customers in the third quarter alone. New loans booked saw a 15% increase to 13.90 million compared to the previous year. While AUM and customer base show robust growth, the deposit book saw a more modest increase to ₹71,000 crore.
- Assets Under Management (AUM) grew by 22% YoY to approximately ₹485,900 crore.
- Customer franchise increased to 115.40 million, with 4.76 million additions in Q3 FY26.
- New loans booked grew by 15% YoY to 13.90 million in the current quarter.
- Deposits book stood at approximately ₹71,000 crore as of December 31, 2025.
Bajaj Finance Limited has announced the closure of its trading window for designated persons starting January 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the Q3 and nine-month financial results for the period ending December 31, 2025. The window will remain closed until 48 hours after the financial results are officially declared. The specific date for the board meeting to approve these results will be communicated at a later date.
- Trading window closure effective from Thursday, January 1, 2026.
- Closure pertains to the unaudited standalone and consolidated results for Q3 and 9M ending December 31, 2025.
- Window to reopen 48 hours after the declaration of financial results.
- Restriction applies to all designated persons and their immediate relatives/dependents.
Bajaj Finance Limited has released the audio recording of its Investor/Analyst Group Meet held on December 5, 2025, in Mumbai. This disclosure follows the company's earlier submission of the presentation materials to the stock exchanges. The recording is now accessible via the company's official investor relations website. Such updates are part of standard transparency practices, allowing all investors to hear management's direct commentary on business operations.
- Investor/Analyst Group Meet successfully conducted on December 5, 2025, in Mumbai.
- Audio recording of the entire session hosted on the company's website for public access.
- Presentation deck for the meeting was previously filed with BSE and NSE on the same day.
- The meeting follows the prior intimation provided by the company on December 1, 2025.
Bajaj Finance is transitioning to a 'FINAI' (Finance + AI) model, aiming for a fully AI-integrated ecosystem by FY28. The company is on track to cross ₹5 lakh crore AUM in FY26, supported by a massive customer base of 110.6 million as of H1 FY26. Recent performance shows strong momentum in high-growth segments like Gold Loans (97% AUM growth) and Auto Loans (60% AUM growth). Management expects to maintain a compounding rate of 17-19% while leveraging deep tech to drive non-linear growth through its Long Range Strategy (LRS) 2026-30.
- AUM reached ₹4.62 lakh crore in H1 FY26, with a clear target to exceed ₹5 lakh crore by the end of FY26.
- Gold Loan AUM surged 97% to ₹16,340 crore, positioning the company as the 5th largest player in the market.
- AI-driven personal loan disbursals are projected to reach ₹5,300 crore via voice bots in FY26 with 68% email resolution by AI agents.
- Historical 18-year Profit After Tax (PAT) CAGR stands at 48%, with FY25 profit reaching ₹16,779 crore.
- Customer franchise grew to 110.6 million with a significant cross-sell base of 71.3 million customers.
Bajaj Finance Limited has sold 166,600,000 equity shares of its subsidiary, Bajaj Housing Finance Limited (BHFL), in the open market for approximately ₹1,587.82 crore. This sale represents 1.9994% of BHFL's paid-up equity share capital and was executed at ₹95.3074 per share. The sale is a step towards achieving Minimum Public Shareholding requirements in BHFL. Following this transaction, Bajaj Finance's shareholding in BHFL stands at 86.7032%.
- Sold 166,600,000 equity shares of BHFL
- Sale consideration of approximately ₹1,587.82 crore
- Sale price of ₹95.3074 per equity share
- Represents 1.9994% of BHFL’s paid-up equity share capital
- Bajaj Finance's shareholding in BHFL now at 86.7032%
Financial Performance
Revenue Growth by Segment
Consolidated Assets Under Management (AUM) grew 24% YoY to INR 462,261 Cr in Q2 FY26. MSME growth moderated to 18% due to a risk-first approach. New business lines (gold loans, new car loans, CV, and tractors) contributed 3% to overall AUM growth. Subsidiary BHFL saw AUM growth of 24%, while BFSL AUM grew by 40%. Net Interest Income (NII) for FY25 increased by 23% to INR 36,393 Cr.
Geographic Revenue Split
Not disclosed in available documents, though the company operates as an 'omnipresent' financial services provider across India with plans to add 900 more branches by March 2027.
Profitability Margins
Net Total Income (NTI) grew 24% to INR 44,954 Cr in FY25. Profit Before Tax (PBT) increased 14% to INR 22,080 Cr. Return on Assets (ROA) was stable at ~4.3% (annualized) for Q1 FY26 compared to 4.0% a year prior. Return on Equity (ROE) remained steady as per Q2 FY26 management commentary.
EBITDA Margin
Pre-impairment operating profit increased by 25% to INR 30,028 Cr in FY25. Opex to Net Total Income (NTI) stood at 33%, reflecting efficient cost management despite a 21% increase in total operating expenses to INR 14,926 Cr.
Capital Expenditure
Not disclosed in absolute INR Cr for physical infrastructure, but the company is investing heavily in 'FinAI' transformation over a 15-18 month horizon to become a future-ready AI financial services company.
Credit Rating & Borrowing
Maintains a strong credit profile with CRISIL Ratings reflecting its position as a large retail NBFC. Consolidated average cost of funds for FY25 was 7.97%, with an exit cost of 7.87% as of March 31, 2025. Management lowered cost of fund guidance by 5 basis points for the full year.
Operational Drivers
Raw Materials
Capital/Debt represents 100% of the 'raw material' for lending operations. Borrowings stood at INR 361,249 Cr as of March 31, 2025.
Import Sources
Sources include domestic markets and international markets. The company raised approximately USD 1 billion in fully hedged External Commercial Borrowings (ECB) as term loans in FY25.
Key Suppliers
Multiple domestic and international banks for term loans and ECBs, and retail/institutional investors for NCDs and deposits.
Capacity Expansion
Current branch network is expanding with 900 more branches planned by March 2027. 500 existing branches are being converted into gold loan branches to pivot from cost centers to profit centers.
Raw Material Costs
Cost of funds (interest expense) is the primary cost. Average cost was 7.97% in FY25. Management aims to maintain NIMs by passing incremental 27 bps benefits to customers.
Manufacturing Efficiency
Operational efficiency is measured by Opex to NTI, which was 33% in FY25. FinAI deployment is expected to render branch staffing surplus, allowing reallocation to higher-value tasks.
Logistics & Distribution
Distribution is handled via the Bajaj Finserv App (70.57 million users) and physical branches. Distribution costs are captured within the 33% Opex to NTI ratio.
Strategic Growth
Expected Growth Rate
24-26%
Growth Strategy
Achieved through a 'FinAI' transformation to enhance customer experience, aggressive expansion into gold loans (converting 500 branches), and scaling new lines like new car loans, CV, and tractor financing which grew 3% in Q2. The company aims for 200 million consumers and a 3-4% share of total credit in India.
Products & Services
Consumer durable loans, personal loans, MSME loans, gold loans, new and used car finance, commercial lending, mortgages (via BHFL), and securities trading (via BFSL).
Brand Portfolio
Bajaj Finance, Bajaj Finserv, Bajaj Housing Finance Limited (BHFL), Bajaj Financial Securities Limited (BFSL).
New Products/Services
Gold loans, new car loans, CV, and tractor loans are scaling up. FinAI transformation is expected to launch new metrics and services within 15-18 months.
Market Expansion
Adding 900 branches by March 2027 and deepening penetration in rural B2C and MFI segments, which were recently upgraded from 'yellow' to 'green' risk status.
Market Share & Ranking
Aims to be amongst the top 5 players in every business line and a top 20 most profitable company in India. Currently one of the largest retail-focused NBFCs.
Strategic Alliances
Strategic importance to parent Bajaj Finserv Ltd and ultimate holding company Bajaj Holdings and Investments Ltd (BHIL) provides financial and operational synergies.
External Factors
Industry Trends
Shift toward 'omnipresent' financial services (App, Web, Social). The industry is evolving toward AI-first models; BFL is positioning itself to be future-ready within 18 months to dominate 4-5% of retail credit.
Competitive Landscape
Faces 'heightened competitive intensity' in the mortgage segment (BHFL) and portfolio attrition, requiring aggressive customer acquisition (94,000 new customers in BFSL in Q2).
Competitive Moat
Moat built on a massive customer franchise (101.82M), data analytics for risk management, and a diversified product suite. Sustainability is driven by the 'risk-first' culture and low NPA levels (0.96% Gross).
Macro Economic Sensitivity
Earnings are susceptible to volatility in credit costs during macroeconomic stress. FY25 impairment increased 72% YoY, reflecting sensitivity to economic cycles.
Consumer Behavior
Increasing adoption of digital platforms, with 70.57 million customers now on the Bajaj Finserv App.
Geopolitical Risks
Not disclosed as a primary risk, though global interest rate trends affect the cost of ECB borrowings.
Regulatory & Governance
Industry Regulations
Subject to RBI regulations for NBFCs. The captive 2-wheeler and 3-wheeler finance business is being phased out as per plan to strengthen asset quality trends from FY27 onwards.
Taxation Policy Impact
Not specifically detailed, but the company reported a PBT of INR 22,080 Cr for FY25.
Risk Analysis
Key Uncertainties
Credit cost volatility is the primary uncertainty, with FY25 impairment rising 72%. Potential impact is a reduction in PAT growth if credit costs exceed the 1.95% guided upper limit.
Geographic Concentration Risk
Not disclosed, but the company is expanding its physical footprint by 900 branches to reduce concentration.
Third Party Dependencies
Reducing dependency on Third Party Loans (3PL) to improve portfolio performance; urban 3PL cut from 13% to 4.8%.
Technology Obsolescence Risk
Mitigated by the FinAI transformation project, aiming to prevent obsolescence by becoming an AI-first financial entity within 15-18 months.
Credit & Counterparty Risk
Maintains industry-leading asset quality with Net NPA at 0.44%. Adjusted networth to NNPA ratio is healthy at 47 times, providing a strong buffer against losses.