Bajaj Finance Q4 FY26 PAT up 22%, AUM tops ₹5 lakh cr

Market reaction: stock up, intraday highs tested

Bajaj Finance shares gained after the company reported a strong March-quarter print and flagged that assets under management (AUM) crossed ₹5 lakh crore. The stock advanced 2.85% to ₹957.40 following the results. During the session, it rose as much as 4.2% to a day’s high of ₹969.40 on the BSE. In another intraday move reported for the same results day, the stock touched ₹975, up 4.83%.

The stock later closed at ₹929.95 on the BSE, up 0.71%. The price action tracked a mix of headline profit growth, improving credit cost, and continued expansion in customers and loans.

Q4 FY26 headline numbers: profit, revenue and NII

For Q4 FY26, Bajaj Finance reported a 21.99% year-on-year rise in consolidated net profit to ₹5,464.57 crore, alongside an 18.1% jump in total revenue from operations to ₹21,605.79 crore. Profit before tax (PBT) increased 31.21% YoY to ₹7,409.84 crore, compared with ₹5,647.38 crore in Q4 FY25. Net interest income (NII) grew 20% to ₹11,781 crore from ₹9,808 crore.

The results also referenced a “presentation change” and “one-time actions” when discussing certain like-for-like performance metrics. On that basis, the company reported Q4 FY26 profit after tax of ₹5,553 crore, up 22% YoY, and profit after tax pre minority interest of ₹5,660 crore, up 27%.

Provisions, ECL overlay and credit cost movement

During Q4 FY26, Bajaj Finance recorded an additional expected credit loss (ECL) provision of ₹142 crore towards management and macroeconomic overlay. Loan losses and provisions for Q4 FY26 stood at ₹2,008 crore versus ₹2,167 crore in Q4 FY25. However, before accounting for the additional ECL provision and the presentation change, loan losses and provisions were stated to be ₹2,125 crore in Q4 FY26, up 8% from ₹1,970 crore in Q4 FY25.

The annualised credit cost improved to 1.65% from 2.17%, indicating better collections and portfolio performance in the period referenced.

AUM crosses ₹5 lakh crore: growth and quarterly build

AUM crossed the milestone of ₹5 lakh crore and stood at ₹5,09,975 crore as of 31 March 2026, compared with ₹4,16,661 crore as of 31 March 2025, translating into 22% growth. In Q4 FY26, AUM grew by ₹25,498 crore. The scale milestone was also highlighted in multiple results summaries for the quarter, with AUM referenced as ₹5.09 lakh crore at the end of March 2026.

This expansion mattered to investors because the AUM print sits alongside steady asset quality metrics and continued customer additions, supporting the business momentum narrative.

Customer additions and loan volumes stayed strong

Bajaj Finance booked 12.89 million new loans in Q4 FY26, a 20% rise from 10.7 million in the year-ago period. Its customer base expanded 17% YoY to 119.33 million, including 3.93 million additions during the quarter. For the full year, the company also reported crossing 50 million new loans booked, reaching 52.45 million.

These operating indicators were cited as key supports to growth in the quarter, alongside loan growth.

Asset quality snapshot: GNPA, NNPA and coverage

On the asset quality front, gross NPA and net NPA as of 31 March 2026 stood at 1.01% and 0.41%, respectively, versus 0.96% and 0.44% as of 31 March 2025. The provisioning coverage ratio on stage 3 assets was reported at 60%, improving from 54% a year earlier in the detailed quarter commentary.

The company also reported a net decrease of ₹430 crore in stage 2 and stage 3 assets during the quarter, with stage 3 declining by ₹761 crore.

Costs and operating leverage: opex moved with income

Operating expenses increased 22% to ₹4,801 crore in Q4 FY26. Opex to net total income stood at 33.8% versus 33.6% in Q4 FY25. Management attributed the sequential increase to the cascading impact of the New Labour Codes and accelerated gold loan branch expansion, while also noting that AI implementation is supporting operating efficiencies.

Net total income rose 21% to ₹14,209 crore, and pre-provisioning operating profit expanded 21% to ₹9,408 crore.

Subsidiaries and associate footprint in consolidated results

The consolidated results include wholly owned subsidiaries Bajaj Housing Finance (BHFL) and Bajaj Financial Securities (BFinserc), and associate companies Snapwork Technologies and Pennant Technologies.

BHFL reported AUM of ₹1,40,706 crore, up 23% YoY. Net total income grew 20% to ₹1,141 crore, and Q4 FY26 profit after tax was ₹669 crore. Asset quality remained stable with GNPA at 0.27% and NNPA at 0.11%.

Bajaj Financial Securities continued scaling from a smaller base, with AUM rising 77% to ₹7,984 crore. Net total income grew 47% to ₹157 crore and profit after tax rose 50% to ₹54 crore. Its customer franchise reached 1.38 million as of 31 March 2026.

Full-year FY26: profit growth and dividend announcement

For FY26, Bajaj Finance reported net profit of ₹19,017 crore, a 14.3% YoY increase over ₹16,637 crore in FY25. Net interest income increased 21% YoY to ₹44,110 crore.

The board recommended a final dividend of ₹6 per equity share (face value ₹1) for FY26, including a special payout of ₹0.60 per share arising from an exceptional gain on the sale of BHFL shares. This compares with a total dividend of ₹5.60 per share in the previous year, adjusted for split and bonus.

Broker calls: targets raised after Q4 print

Brokerages cited in the results coverage turned positive on the back of the quarter’s reported performance. Jefferies maintained a ‘Buy’ rating with a target price of ₹1,210, implying a potential upside of 30%. Over FY26-29, it expects loan growth at a CAGR of 23%, with some moderation in NIMs and credit costs, translating into a profit CAGR of around 20%.

JM Financial reiterated its ‘Buy’ rating with a target price of ₹1,080, implying a potential upside of 16%.

Key numbers at a glance

Why this quarter mattered for investors

The Q4 FY26 report combined scale, with AUM crossing ₹5 lakh crore, and relatively stable asset quality, with GNPA at 1.01% and NNPA at 0.41%. Profit growth was supported by NII expansion to ₹11,781 crore and net total income of ₹14,209 crore, while the annualised credit cost improved to 1.65% from 2.17%.

At the same time, the quarter included an additional ECL overlay of ₹142 crore, and the company flagged a presentation change that affects comparability of some line items. Investors and analysts therefore focused on both the statutory headline numbers (including the ₹5,464.57 crore consolidated net profit figure cited) and the like-for-like disclosures that put quarterly PAT at ₹5,553 crore.

Conclusion

Bajaj Finance’s Q4 FY26 update delivered higher profits, strong customer and loan additions, and a major AUM milestone, while keeping headline asset quality ratios broadly steady. The final dividend recommendation of ₹6 per share, including a special ₹0.60 payout linked to the sale of BHFL shares, added to the post-results focus. Street attention is likely to remain on credit cost trends, cost ratios, and management’s stated expectations for FY27, including a net loan loss to average AUF range of 1.45% to 1.60%.