Bajaj Finance Q4 Profit Jumps 19%; Announces Bonus, Split & Dividend

Introduction to Q4 Performance

Bajaj Finance Ltd. announced a strong performance for the fourth quarter ending March 31, 2025, reporting a 19% year-on-year increase in its consolidated net profit. The non-banking financial company (NBFC) posted a profit of ₹4,546 crore, up from ₹3,825 crore in the corresponding quarter of the previous fiscal year. This growth was accompanied by significant announcements for shareholders, including a bonus share issue, a stock split, and a record-high dividend payout, signaling management's confidence in the company's future.

Detailed Financial Highlights

The company's robust financial health was evident across key metrics. Revenue from operations for Q4 FY25 saw a substantial increase of 17%, reaching ₹18,457 crore compared to ₹14,927 crore in Q4 FY24. Net Interest Income (NII), a critical indicator of profitability for lending institutions, grew by 22% year-on-year to ₹9,807 crore from ₹8,013 crore. For the full financial year FY25, Bajaj Finance reported a consolidated profit of ₹16,779 crore, marking a 16% increase over the previous year.

Operational Growth and Customer Expansion

Beyond the profit and revenue figures, Bajaj Finance demonstrated significant operational expansion. The company's Assets Under Management (AUM) grew by 26% year-on-year, reaching ₹4.16 lakh crore as of March 31, 2025. This growth was fueled by strong momentum in loan disbursements, with the company booking 10.7 million new loans in the fourth quarter alone, a 36% increase from the previous year. The customer franchise also crossed a major milestone, expanding by 22% YoY to reach 101.82 million, firmly establishing its extensive retail presence.

A Trio of Shareholder Rewards

In a move to reward its investors, the Board of Directors approved a multi-faceted package of returns. The company announced a 4:1 bonus issue, meaning shareholders will receive four bonus equity shares for every one share they hold. This is the company's first bonus issue in nine years. Additionally, a 1:2 stock split was approved, which will sub-divide the face value of each equity share from ₹2 to ₹1. This measure is aimed at increasing liquidity and making the stock more accessible to retail investors.

Record Dividend Payout

Further enhancing shareholder value, Bajaj Finance declared its highest-ever dividend. The board recommended a final dividend of ₹44 per share for FY25, along with a special dividend of ₹12 per share. This brings the total dividend payout to ₹56 per share. The company clarified that the special dividend was a result of a one-time exceptional gain from the partial stake sale in its subsidiary, Bajaj Housing Finance, during its Initial Public Offering (IPO) in September 2024.

Key Dates for Investors

Investors should note the important dates associated with these corporate actions to ensure eligibility. The company has fixed specific record dates for the dividend, bonus issue, and stock split.

Provisions and Asset Quality

While the overall performance was strong, the company also increased its provisions for potential bad loans. Loan losses and provisions for Q4 FY25 stood at ₹2,329 crore, an increase of approximately 78% year-on-year. This reflects a cautious approach towards managing risks, particularly in the unsecured lending segment. The company also made an additional provision of ₹359 crore related to the redevelopment of its Expected Credit Loss (ECL) model.

Market Reaction and Conclusion

Following the announcements, the share price of Bajaj Finance closed at ₹9,105 on the BSE. The comprehensive shareholder rewards, backed by strong financial and operational growth, underscore the company's solid position in the market. The combination of profit growth, expanding AUM, and a commitment to returning value to investors positions Bajaj Finance for sustained performance in the coming fiscal year.