Bajaj Finance AUM ₹4.86 lakh cr; eyes ₹5 lakh FY26

Why the latest AUM milestone matters

Bajaj Finance’s latest quarterly business update reinforces how fast large NBFCs are scaling in India’s retail credit market. As of 31 December 2025, the company reported assets under management (AUM) of ₹4,85,900 crore, up 22% year-on-year. New loans booked rose 15% over the same period, signalling continued demand across key retail lending products. The update comes at a time when investors are increasingly focused not just on growth but also on margins, asset quality, and operating costs.

In the broader Bajaj group, Bajaj Housing Finance Ltd (BHFL) is also drawing attention for its pace of expansion in mortgages, a segment traditionally led by banks. BHFL has completed eight years as a standalone entity and listed in September 2024, after what was described as a strong stock market debut. The combination of a fast-growing mortgage platform and a large consumer lender underlines why the group’s lending trajectory is being tracked closely.

BHFL’s rapid scale-up in mortgages

BHFL has maintained credit growth of around 25% since entering the mortgage business, according to the provided data. The company crossed a key scale milestone last fiscal when its balance sheet moved beyond ₹1,00,000 crore. That places it as the third-largest housing finance company, behind LIC Housing Finance and Housing and Urban Development Corporation Ltd.

High growth in mortgage lending is often associated with underwriting risks, but BHFL’s asset quality metrics have remained tight. Between FY22 and FY25, BHFL recorded a compound annual growth rate (CAGR) of 28.88% in disbursals. Over the same period, gross non-performing assets (GNPA) stayed stable in a narrow band of 0.2% to 0.3%. LKP Securities’ equity research analyst Ninad Jadhav described this as growth without diluting asset quality.

Bajaj Finance’s December-quarter snapshot

Bajaj Finance’s December-quarter update highlighted both scale and customer acquisition. Customer base expanded to 115.4 million from 97.1 million a year earlier. The company added 4.76 million customers during the quarter, indicating that customer additions remain a key operating lever alongside loan growth.

On the liability side, deposits rose to ₹71,000 crore from ₹68,797 crore, pointing to continued traction in retail funding mobilisation. Analysts tracking the stock noted that, while loan growth remains healthy, the company appears selective in expanding certain segments such as unsecured retail and MSME loans. This selectivity is being viewed as a risk-management response to macro uncertainty.

Market reaction and what analysts flagged

Despite the strong operating numbers, the market response was described as mixed. The commentary noted moderate selling pressure in the shares, suggesting that investors are weighing growth delivery against valuation and broader market sentiment.

ICICI Direct’s analysts highlighted that 22% AUM growth and a 15% rise in new loans point to a healthy franchise expansion. But they also emphasised the need to monitor margin sustainability, cost-to-income ratios, and asset quality. Brokerage commentary referenced a mix of Buy ratings with target prices implying 10% to 15% upside, alongside caution around potential stress pockets in MSME and unsecured personal loans.

How Bajaj Finance stacks up against private banks

Bajaj Finance’s AUM trajectory has narrowed the gap with mid-sized private sector banks, even if it remains smaller than the largest lenders. As of 30 September 2025, the company’s AUM was reported at ₹4,62,000 crore. In the same comparison set, HDFC Bank reported total assets of ₹40,03,000 crore, ICICI Bank ₹21,36,000 crore, and Axis Bank ₹16,77,000 crore (all as of 30 September 2025).

But Bajaj Finance’s AUM is now in the range of Kotak Mahindra Bank (₹7,07,000 crore) and IndusInd Bank (₹5,27,000 crore). It has also overtaken Yes Bank (₹4,29,000 crore) and IDBI Bank (₹4,16,000 crore) on this metric. The company has guided that it expects to cross ₹5,00,000 crore AUM in FY26, which would further position it alongside mid-tier private banks in terms of balance-sheet scale.

Technology push: voice bots and AI agents

A key operational theme highlighted in the investor-day material is the use of automation to support growth at scale. Bajaj Finance plans to disburse ₹3,500 crore of loans through voice bots in the current financial year. At present, nine chatbot services are live, and the company expects AI agents to take over completely by the end of the fiscal year as part of its long-range 2026-30 strategy.

The same plan outlined targets such as 16-18 crore application installations and 3.5-4.5 billion web visitors, along with 30% digital contribution. It also referenced 31% opex to net interest margins and a potential 90% reduction in workload, positioning technology as a cost and scalability lever.

Recent financial performance and FY26 guidance

In Q2FY26, Bajaj Finance reported net interest income of ₹10,785 crore, up from ₹8,838 crore in Q2FY25. Profit before tax rose to ₹6,608 crore from ₹5,401 crore, while profit after tax increased to ₹4,948 crore from ₹4,014 crore. The company also reported annualised loan losses and provisions to average assets under finance at 2.05% for Q2FY26.

For Q4 FY25, Bajaj Finance reported revenue of ₹18,469 crore and net profit of ₹4,546 crore. For FY25, revenue was reported at ₹69,725 crore and profit after tax at ₹16,779 crore. It also guided for FY26 AUM growth of 25% to 27%, profit growth of 23% to 24%, and RoE of 19% to 21%.

Key metrics at a glance

Bajaj Finserv’s FY30 targets add a longer runway

At the holding-company level, Bajaj Finserv presented a 2026-2030 roadmap at “Investor Day 2025”. The group is targeting consolidated profit after tax of ₹21,000 crore to ₹24,000 crore by FY30, implying an 18% to 22% CAGR from current levels. It also outlined consolidated assets of ₹3,10,000 crore to ₹3,40,000 crore by FY30, up from ₹1,30,000 crore in FY2025.

Bajaj Finserv also set an ambition of over 220 million active customers by FY30, up from over 100 million currently. The presentation described an intent to evolve into an integrated financial services platform covering lending, insurance (life and general), wealth and asset management, and newer verticals under the Bajaj Finserv umbrella.

Market impact: what investors are watching next

The data points show strong growth momentum, but the investor debate is shifting to the quality and cost of that growth. For Bajaj Finance, analysts have highlighted monitoring areas such as margin sustainability, cost-to-income pressure, and credit costs in unsecured and MSME segments. The company’s deposit growth and expanding customer base are also being seen as supportive for liquidity and funding stability.

For BHFL, the combination of high disbursal growth and a GNPA range of 0.2% to 0.3% stands out in a segment where rapid growth can bring underwriting risks. Its balance sheet crossing ₹1,00,000 crore also signals that mortgage-focused NBFCs are reaching sizes once associated mainly with banks and large HFC incumbents.

Conclusion

Bajaj Finance’s 22% AUM growth to ₹4,85,900 crore as of December 2025 keeps it on its guided path to cross ₹5,00,000 crore in FY26. Alongside this, BHFL’s rapid scaling in mortgages with stable GNPAs highlights how the Bajaj group’s lending businesses are expanding while keeping a stated focus on risk controls. The next set of closely tracked signals will be updates on margins, operating costs, and asset quality trends as the group pushes deeper into automation and digital-led distribution under its 2026-30 plans.