Bajaj Finance Q4FY26: Profit rises 22%, AUM above ₹5L cr

Stock reaction after results

Bajaj Finance shares rose more than 3% in early trade on Thursday, extending the previous session’s gains after the NBFC posted a steady Q4FY26 performance. The stock traded around ₹962.6, up 3.5%, after ending Wednesday at ₹930 ahead of the results. During the day, it climbed as much as 4.2% to ₹969.40 on the BSE.

The move came even as key earnings metrics were marginally below consensus expectations in parts of the coverage. Brokerages largely stayed constructive, pointing to strong growth visibility and an improving credit cost outlook.

Q4 profit: steady growth, slight miss versus poll

On profitability, the coverage cited two net profit figures for the quarter ended March 2026. One report said Bajaj Finance posted a 22% year-on-year (YoY) increase in net profit to ₹5,465 crore, slightly below a CNBC-TV18 poll estimate of ₹5,524 crore. Another report said profit rose 22% YoY to ₹5,553 crore, compared with ₹4,546 crore in the year-ago period.

While the reported profit growth remained strong in either case, the focus for investors was the combination of volume growth and easing credit costs.

Net interest income growth remains healthy

Net interest income (NII) grew 20% YoY to ₹11,781 crore, according to the poll-based summary, marginally below expectations of ₹11,853 crore. NII is a key operating metric for lenders and tends to influence how markets read through funding costs, loan yields, and growth.

Despite the small deviation versus estimates, brokerages maintained bullish ratings, indicating they were comfortable with the broader trajectory of growth and profitability.

AUM crosses ₹5 lakh crore milestone

A central highlight of the quarter was scale. Bajaj Finance’s assets under management (AUM) crossed the ₹5 lakh crore mark.

The summaries reported AUM at ₹510,000 crore (₹5.1 lakh crore) and ₹509,000 crore (₹5.09 lakh crore) as of end-March 2026. The year-ago AUM was cited at ₹416,000 crore (₹4.16 lakh crore), implying about a 22% YoY increase.

AUM grew by ₹25,498 crore during the quarter, reflecting continued business momentum.

Loan volumes and customer additions

New loans booked in Q4FY26 rose 20.5% YoY to 12.89 million in one summary. Another data point pegged new loans at 12.89 million, up 20% from 10.7 million in the year-ago period.

The customer franchise expanded too. Bajaj Finance’s customer base grew 17% YoY to 119.33 million, including 3.93 million additions during the quarter. These operating metrics were cited as support for the company’s growth momentum.

Asset quality and provisioning indicators

Asset quality was described as steady. Gross non-performing assets (GNPA) stood at 1.01% and net NPA (NNPA) at 0.41% as of March-end. These compare with 0.96% GNPA and 0.44% NNPA in the previous year.

Provision coverage on stage 3 assets was reported at 60%. Loan losses and provisions fell to ₹2,008 crore from ₹2,167 crore a year earlier. The annualised credit cost improved to 1.65% from 2.17%, indicating better collections and portfolio performance as per the coverage.

Capital position remains comfortable

The company’s capital adequacy ratio was reported at 21.55%, including Tier-I capital at 20.67%. The coverage noted this left sufficient room to support future growth, an important consideration for lenders scaling AUM at a fast pace.

What brokerages said: targets and key watchpoints

Brokerages largely retained positive stances, while adjusting for operating costs and credit trends.

• Jefferies maintained a Buy rating with a target price of ₹1,210, implying about 30% potential upside. It marginally tweaked estimates after factoring slightly higher operating expenses due to investments in gold loan distribution. Over FY26-29, Jefferies expects loan growth at a 23% CAGR, with some moderation in NIMs and credit costs, translating into a profit CAGR of around 20%. It also noted clarity on succession is expected next year, and that Rajiv Bajaj is set to retire upon completion of his board term.

• Morgan Stanley maintained an overweight rating and raised its target price to ₹1,120 from ₹1,090, implying about 20% upside from current levels. It highlighted adjusted PBT growth of 26% YoY and pointed to a sharp improvement in credit costs due to lower bad loan formation. The brokerage cited management guidance for FY27 AUM growth of 22-24% and a net credit cost outlook of 145-160 basis points. It also referenced valuations of 22x FY28E P/E and 4.3x price-to-book.

• JM Financial reiterated Buy with a target price of ₹1,080, implying about 16% upside. It pointed to franchise scale, sustained AUM growth above 20%, and sector-leading return ratios, with a constructive view on lower credit cost guidance and a rising share of secured lending.

Key numbers snapshot

Why the quarter mattered for investors

The market response suggested investors were willing to look past a marginal miss versus estimates in NII and profit, focusing instead on AUM scale, loan growth, and signs of normalising credit costs. For an NBFC, the combination of high growth and improving loss metrics can materially influence confidence in medium-term earnings visibility.

Broker commentary also highlighted operating expense investments, including in gold loan distribution, and the need to track NIM and cost dynamics alongside growth. Management guidance referenced by Morgan Stanley, including FY27 AUM growth of 22-24% and net credit cost of 145-160 bps, will be a key reference point for market expectations.

Conclusion

Bajaj Finance’s Q4FY26 updates showed continued momentum in AUM and customer additions, steady asset quality, and improving credit costs, alongside profit growth of about 22% YoY. The stock gained over 3% as brokerages broadly maintained Buy or overweight views, even as some metrics came in marginally below estimates. Investors are now likely to track execution against the stated growth and credit cost outlook for FY27, and how operating expenses evolve alongside expansion plans.