Bajaj Finance Q2 FY26 Results: Profit Jumps 23% to ₹4,948 Crore

Bajaj Finance Limited, a leading non-banking financial company in India, announced strong financial results for the second quarter of fiscal year 2026, ending September 30, 2025. The company reported a significant 23% year-on-year (YoY) increase in its consolidated profit after tax, underscoring its resilient growth in a dynamic market.

Strong Profitability and Revenue Growth

Bajaj Finance's consolidated profit after tax for Q2 FY26 stood at ₹4,948 crore, a substantial rise from ₹4,014 crore in the corresponding quarter of the previous year. This growth was supported by healthy increases in income. Net interest income (NII) for the quarter grew by 22% YoY to ₹10,785 crore. The net total income also saw a 20% increase, reaching ₹13,170 crore.

The company's pre-provisioning operating profit climbed by 21% to ₹8,874 crore, indicating strong operational efficiency. Despite this growth, loan losses and provisions increased by 19% to ₹2,269 crore for the quarter.

Expansion in AUM and Customer Base

A key driver of the company's performance was the consistent expansion of its Assets Under Management (AUM). As of September 30, 2025, consolidated AUM grew by 24% YoY to ₹4,62,261 crore from ₹373,924 crore a year earlier. The company added ₹20,811 crore to its AUM during Q2 FY26 alone.

The customer franchise also witnessed robust growth, expanding by 20% to 110.64 million. Bajaj Finance added 4.13 million new customers during the quarter. This expansion was fueled by a 26% increase in new loans booked, which totaled 12.17 million in Q2 FY26.

Key Financial Metrics for Q2 FY26

Asset Quality and Capital Position

Bajaj Finance reported a slight increase in its non-performing assets. The Gross NPA stood at 1.24% and Net NPA was at 0.60% as of September 30, 2025, compared to 1.06% and 0.46% respectively, in the previous year. The provisioning coverage ratio on stage 3 assets was maintained at 52%.

The company's capital position remains strong. The Capital Adequacy Ratio (CRAR) was 21.23% as of the quarter's end, with Tier-I capital at 20.54%, well above regulatory requirements.

Performance of Subsidiaries

Bajaj Housing Finance Ltd (BHFL), a key subsidiary, also demonstrated solid growth. BHFL's AUM increased by 24% to ₹1,26,749 crore. Its profit after tax for Q2 FY26 rose by 18% to ₹643 crore. The housing finance arm maintained excellent asset quality, with a Gross NPA of 0.26% and a Net NPA of 0.12%.

Strategic Initiatives and Festive Season Success

Management highlighted the ongoing implementation of FINAI (Financial AI) across its business lines, which is expected to deliver cost and productivity benefits over the next 12 to 18 months. The company has identified 123 high-impact AI use cases, with 80 scheduled to be operational by February 2026.

The company also reported a strong performance during the recent festive season, from Navratri to Diwali. It disbursed 6.3 million consumer loans, marking a 27% growth in volume and a 29% increase in value compared to the same period last year. This period also saw the addition of 2.3 million new customers.

Management Outlook

Rajeev Jain, Vice Chairman and Managing Director of Bajaj Finance, commented on the results, stating, "We have delivered a good quarter on volume, AUM, Opex, profitability, ROA, and ROE." He acknowledged that credit costs remained elevated but expressed confidence that the company's strategic focus on AI and customer-centric innovations positions it well for sustained growth.

Conclusion

Bajaj Finance's Q2 FY26 results reflect a period of strong, all-round performance. The company successfully expanded its loan book, customer base, and profitability while maintaining a robust capital position. Its strategic investments in technology and a strong showing during the festive season suggest a positive outlook for the upcoming quarters.