Bajaj Finance Q2FY27: Profit +29%, FY27 growth 26-27%

Bajaj Finance shares fell on Wednesday even as the non-banking financial company (NBFC) posted a strong set of September-quarter numbers and updated investors on its FY27 growth outlook. The company reported a 29% year-on-year rise in Q2FY27 net profit to INR 6,367 crore, up from INR 4,948 crore in the year-ago quarter.

Alongside the results, Bajaj Finance also held its earnings conference call on October 19, 2026, and said the presentation and audio recording were made available on its website under the “Quarterly Earnings Call” section, in line with disclosure requirements.

What moved the stock on Wednesday

The day’s decline came despite the headline profit growth, suggesting investors were balancing the strong operating momentum against guidance and margin commentary shared on the call. Management indicated that rising rates and funding costs could lead to marginal net interest margin (NIM) moderation, even as it expects to manage profitability through operating leverage and credit-cost discipline.

In the earnings call, the company also discussed competitive intensity across segments, including gold loans, and outlined steps taken in certain product structures. For investors, the combination of strong growth and cautious margin commentary tends to be the key lens in a rate-sensitive NBFC cycle.

Q2FY27 profit and headline financial performance

Bajaj Finance said Q2FY27 net profit rose 29% year-on-year to INR 6,367 crore. On the operating side, management highlighted scale and profitability metrics in the call. Assets under management (AUM) grew 26.5% to INR 5,84,624 crore, with net AUM addition of about INR 38,000 crore during the quarter.

Management also disclosed profit before tax (PBT) of INR 8,537 crore for Q2. During the call, the company referenced a macroeconomic overlay it created in the quarter, which management described as a prudential step.

FY27 growth guidance raised, medium-term view unchanged

On guidance, Rajeev Jain, Vice Chairman and Managing Director, said Bajaj Finance expects to deliver 26% to 27% growth for FY27 on a full-year basis. He also reiterated the medium-term guidance of 23% to 25%, which implies a slower run-rate beyond the current year.

The guidance commentary was positioned as a function of the company’s performance and its assessment of the environment. The call also flagged that competitive intensity remains high in gold loans and other segments, a point that can influence pricing and growth mix.

Margin commentary: NIM seen moderating marginally

Management addressed the margin outlook against the backdrop of funding costs. Rajeev Jain said that with rates expected to rise toward 6%, there could be marginal NIM moderation, but that return ratios should be managed through offsets such as operating expense efficiency and credit costs.

CFO Sandeep Jain said H1 NIM was about 5 basis points lower than March, and that Q2 NIM was down 10 to 12 basis points versus Q1. He also flagged a marginal additional compression versus the company’s original 10 to 15 basis point NIM compression guidance for the year.

Separately, the company said cost of funds fell sequentially by 9 basis points to 7.87% during Q2.

Operating metrics: loan volumes, customers, and efficiency

Management said the company booked just under 13.5 million new loans in Q2 and added 4.5 million new customers. The overall customer franchise stood at just under 129 million customers.

On profitability ratios, Bajaj Finance reported ROA of 4.6% and ROE of 20.6% for the quarter. Operating expenses remained a focus area, with OPEX to total income at 33%. The company said it remains comfortably placed to deliver a 25 to 40 basis point improvement in FY27 on OPEX to net total income (NTI), despite ongoing investments in gold loan branches, MFI branches, and technology transformation.

Asset quality and overlays: provisions disclosed on the call

On credit quality, management said net NPA came in at 42 basis points, while GNPA was 1.06%. The company also said loan loss to average AUF improved to 1.56% from 1.88% last year.

As a prudential measure, management disclosed a macroeconomic overlay of about INR 337 crore recognised in Q2. Separately, CFO Sandeep Jain said the overall macro provision stood at about INR 226 crore, and the management overlay was INR 512 crore. He broke down the management overlay as INR 185 crore taken in the previous quarter and INR 327 crore in the current quarter.

Gold loans update: Stage 2 movement and product changes

During the Q&A, management discussed gold loans, including competitive intensity and changes to certain schemes. Rajeev Jain said the company had stopped short-tenure schemes since August and is working on offering longer 12-month schemes with monthly and quarterly interest payment options.

On asset quality movement in gold loans, Rajeev Jain said that of the roughly INR 1,100 crore Stage 2 increase, INR 550 crore has already resolved back to Stage 1. He added that the company does not see a credit cost impact from the change.

Capital raising rationale and BHFL holding plan

Management also addressed the rationale behind a proposed INR 11,700 crore qualified institutional placement (QIP) and INR 5,800 crore preferential warrants by Bajaj Finserv. Rajeev Jain said the capital raise is principally for growth, and pointed out that the balance sheet has roughly doubled since the last INR 10,000 crore raise three years ago, making the current quantum smaller relative to balance sheet growth.

He also said the company intends to remain a 75% holder in BHFL, compared with the current holding of 87%. Management said it wants to give BHFL more time to transition its business model from super prime and prime toward prime and near prime, with the intention of benefiting Bajaj Finance shareholders.

Disclosures and investor access under Regulation 30

The board approved the unaudited standalone and consolidated financial results on October 19, 2026. The earnings conference call was held the same day at 6:00 pm IST with Vice Chairman and Managing Director Rajeev Jain and COO and CFO Sandeep Jain.

In an exchange filing under Regulation 30 (LODR), Bajaj Finance said the audio recording of the call has been hosted on its website and is available under the “Quarterly Earnings Call” section. The company also referenced that transcripts and call materials are made available through stock exchange submissions and its website.

Key numbers at a glance

Market impact and why the commentary matters

For an NBFC of Bajaj Finance’s scale, the market often weighs growth momentum against the direction of margins and credit costs. The company’s 26.5% AUM growth and higher FY27 growth guidance point to strong loan demand and distribution strength, reinforced by the quarter’s loan and customer additions.

At the same time, the call’s NIM commentary highlighted that funding and rate dynamics remain a key sensitivity. With H1 NIM slightly below March levels and Q2 NIM down versus Q1, investors are likely to focus on whether cost-of-funds trends, operating efficiency (OPEX to NTI), and credit performance can offset incremental margin compression.

Conclusion

Bajaj Finance’s Q2FY27 results showed 29% profit growth and 26.5% AUM expansion, while management raised FY27 growth guidance to 26% to 27% and reiterated a 23% to 25% medium-term outlook. The company also laid out its view on NIM moderation, provisioning overlays, and the rationale for planned capital raising. The next key markers for investors will be subsequent quarters’ NIM movement, credit-cost trajectory, and progress on product changes such as longer-tenure gold loan schemes.