Bajaj Finance AUM jumps 26.5% in Q2 FY27 update

Key takeaway from the quarterly business update

Bajaj Finance Limited reported strong growth in assets under management (AUM) for the quarter ended September 30, 2026, pointing to sustained lending momentum going into the second half of FY27. The non-banking financial company (NBFC) disclosed provisional operational metrics in a stock exchange filing dated October 3, 2026. AUM rose 26.5% year-on-year to about ₹584,750 crore, supported by customer acquisition and continued credit demand across its product lines. The company also showed an expanding customer base, a steady pace of new loan originations, and a growing deposit book. These indicators matter for investors because they offer an early read on business volumes ahead of the statutory quarterly financial results. The update also arrives alongside a broader capital raising plan and a related decision by parent Bajaj Finserv.

AUM growth and what it signals for lending volumes

AUM stood at approximately ₹584,750 crore as of September 30, 2026, representing 26.5% growth compared with the same date a year earlier. Bajaj Finance said AUM increased by about ₹37,800 crore during the September 2026 quarter itself. Quarter-on-quarter AUM additions are closely tracked because they reflect net disbursement momentum after accounting for repayments and portfolio churn. The company attributed the year-on-year expansion to robust customer acquisition and lending volumes. While the filing did not break down AUM by product, the pace of growth indicates that demand remained resilient in its core retail and SME segments during the quarter. The company has also reiterated longer-term AUM growth guidance of 22% to 25% and outlined FY27 targets including return on assets (ROA) of 4.40% to 4.60% and return on equity (ROE) of 19% to 20%.

Customer franchise crosses 128.85 million

Bajaj Finance reported its customer franchise at 128.85 million as of September 30, 2026, up from 110.64 million a year earlier. The company added 4.42 million customers during Q2 FY27 alone. Customer additions are significant because they influence cross-sell potential and future loan origination volumes, especially in a lender that relies on repeat borrowing across consumer and business products. The year-on-year increase also aligns with the company’s broader narrative of expanding its distribution footprint and deepening engagement with existing customers. However, the business update did not provide a split between new-to-credit, existing-to-company, or product-specific customer cohorts.

New loans booked rise 11%, with a comparability caveat

New loans booked increased 11% year-on-year to 13.45 million in Q2 FY27, compared with 12.17 million in Q2 FY26. Bajaj Finance flagged that year-on-year volume growth is not directly comparable because of the early onset of the festival season in the previous fiscal year. This is an important disclosure for readers interpreting the growth rate, as festive-led demand can pull forward purchases and financing volumes, particularly in consumer durables and other retail categories. Even with that caveat, the company’s loan booking numbers show continued activity through the quarter. The update did not share product mix, average ticket sizes, or delinquency indicators, so the volume data should be read as a directional operational signal rather than a full risk and profitability snapshot.

Deposits book rises to about ₹69,750 crore

The deposits book stood at approximately ₹69,750 crore as of September 30, 2026. Bajaj Finance operates as a deposit-taking NBFC in India, and retail deposits are an important funding source alongside market borrowings. A larger deposit base can help diversify liabilities and potentially improve funding stability, particularly during periods of higher funding costs. The company described the deposit figure as evidence of continued ability to attract retail deposits. The filing did not provide deposit tenure mix, cost of funds, or deposit growth rate, but the absolute number shows steady scaling of this franchise.

Capital raising: Bajaj Finserv approves warrant subscription

Separately, Bajaj Finserv Limited approved the subscription to convertible warrants of its subsidiary, Bajaj Finance Limited, for an aggregate cash consideration not exceeding ₹5,800 crore. The Board of Directors authorised the preferential allotment at its meeting held on October 1, 2026. This decision complements Bajaj Finance’s broader capital raising plan, which includes a Qualified Institutions Placement (QIP) of ₹11,700 crore. Together, these proposals imply a total fundraise plan of ₹17,500 crore as stated in the provided information. Bajaj Finserv currently holds 51.30% of the total issued and paid-up equity share capital of Bajaj Finance, making its capital support and ownership level a key part of the group structure.

Sector backdrop: NBFC cycle shows recovery signals

The operating update comes at a time when India’s NBFC sector is described as showing signs of broad-based cyclical recovery. FY27 first-quarter results across the space have been characterised by stronger loan growth, improving asset quality, lower credit costs, and emerging operating leverage, according to the provided context. Earnings estimates are also being upgraded, supporting expectations of sustained profitability and potential valuation re-rating across leading lenders. For Bajaj Finance, such a backdrop matters because business volumes and credit costs typically move with broader consumption and small business conditions, and because funding conditions can influence margins.

Recent financial performance: Q1 FY27 profit and revenue context

In Q1 FY27, Bajaj Finance reported revenue of ₹23,165 crore, up 18.65% from ₹19,524 crore in Q1 FY26. Net profit for Q1 FY27 was ₹6,081 crore, up 27.62% from ₹4,765 crore in Q1 FY26. A separate data point also stated consolidated profit after tax rose 28% year-on-year to ₹6,081 crore for the quarter ended June 30, 2026, from ₹4,765 crore a year earlier, while net interest income grew 23%. For the September 2025 quarter (Q2 FY26), the company reported revenue of ₹20,179 crore and profit of ₹4,948 crore, which forms the year-ago base for upcoming Q2 FY27 comparisons. These figures help frame why investors closely watch operational metrics like AUM, customer additions, and deposit growth ahead of reported earnings.

Timeline and metrics snapshot

Below is a consolidation of key, explicitly stated figures from the updates and results context.

Results date and reporting window for Q2 FY27

The Q2 FY27 financial results date was described as not confirmed, with the note that Bajaj Finance had not filed a board meeting intimation with NSE or BSE as of September 9, 2026. Indian listing rules require the September 2026 quarter results to be published within 45 days of the quarter end, implying an outer deadline of November 14, 2026. Another line in the provided material stated the company is going to release the next earnings report on October 27, 2026. Taken together, readers should treat October 27 as a referenced date in market information, while also recognising that the formal exchange-intimated schedule was noted as pending as of the stated checkpoint.

Market impact and why these operational numbers matter

Operational disclosures like AUM growth, customer additions, and deposit levels influence market expectations for growth and funding resilience. AUM at ₹584,750 crore and quarterly additions of ₹37,800 crore suggest continued balance sheet expansion, which typically supports interest income. Customer franchise growth to 128.85 million and 4.42 million additions in a single quarter underline the scale advantage in sourcing and cross-selling. Deposit book at ₹69,750 crore signals progress in building a stable retail funding base. At the same time, the company’s comment on festival-season timing highlights how seasonal factors can affect year-on-year comparisons in loan volumes. Finally, the planned ₹17,500 crore capital raise, combining warrants (up to ₹5,800 crore) and QIP (₹11,700 crore), provides context on balance sheet strategy as the lender targets FY27 profitability and growth metrics.

Conclusion

Bajaj Finance’s provisional Q2 FY27 update showed AUM up 26.5% year-on-year to ₹584,750 crore, a customer franchise of 128.85 million, new loans booked of 13.45 million, and a deposit book of about ₹69,750 crore. The group’s capital actions, including Bajaj Finserv’s approval to subscribe to warrants and the planned QIP, add an important funding and capital buffer context. The next key milestone for investors is the formal Q2 FY27 results announcement, which must be released within the regulatory timeline for the September quarter, with dates referenced in the market but exchange intimation noted as pending as of September 9, 2026.