Summary: Bajaj Finance reported a 29% year-on-year increase in consolidated profit after tax to ₹6,367 crore for the September quarter. Net interest income rose 24%, assets under management expanded 26%, and asset-quality ratios improved. The results were released after Indian markets closed on October 19, so the day’s 2.5% share-price decline cannot be attributed to the earnings announcement. Investors will now track credit costs and the proposed capital raise.
Bajaj Finance entered the second half of FY27 with faster lending growth, improved bad-loan ratios and a larger customer base. The headline numbers were strong, but the lender also carried an additional management and macroeconomic provision, making credit-cost trends an important watch point.
What Happened
Bajaj Finance said consolidated profit after tax before minority interest increased 29% year on year to ₹6,367 crore in Q2 FY27. Net interest income grew 24% to ₹13,335 crore, while net total income rose 23% to ₹15,974 crore.
Assets under management reached ₹5,84,624 crore on September 30, up 26% from ₹4,62,261 crore a year earlier. The company booked 13.45 million new loans during the quarter and added 4.42 million customers, taking its customer base to 128.85 million.
Gross non-performing assets improved to 1.06% from 1.24% a year earlier, and net NPA declined to 0.42% from 0.60%. Loan losses and provisions nevertheless increased to ₹2,166 crore, including an additional ₹337 crore provision for management and macroeconomic risks.
Why It Matters
The results show that Bajaj Finance continues to grow faster than many large lenders while keeping headline asset-quality ratios under control. A 26% increase in AUM and 24% NII growth strengthen its earnings base, but the additional provision and rise in Stage 2 and Stage 3 assets from the June quarter deserve attention.
The company is also pursuing a capital raise of up to ₹17,500 crore, comprising a proposed qualified institutional placement and convertible warrants to promoter Bajaj Finserv. Those transactions remain subject to the required approvals and could strengthen capital available for future growth.
Market Impact
Bajaj Finance shares closed at ₹957.35 on the NSE on October 19, down about 2.5%, while the broader Sensex fell 1.17%. Because the financial results were announced after the market closed, there was no demonstrated post-results share-price reaction at the time of publication. The next trading session will offer the first direct market response.
Industry Context
Indian lenders are being judged not only on loan growth but also on funding costs, net interest margins and emerging credit stress. Bajaj Finance’s cost of funds fell nine basis points sequentially to 7.31%, while capital adequacy stood at 20.33%. Its scale and diversified consumer-finance model make these trends relevant for the wider NBFC sector.
For comparison, several large Indian banks have also reported recent quarterly results. BusinessNews1’s coverage of HDFC Bank’s Q2 performance provides additional context on loan growth and margins across the lending industry.
What To Watch Next
- The first trading-session reaction to the after-market earnings release.
- Movement in Stage 2 and Stage 3 assets and the path of credit costs.
- Shareholder and regulatory approvals for the proposed ₹17,500 crore capital raise.
- Progress against FY27 guidance of 60–62 million new loans and 18–20 million customer additions.
Frequently Asked Questions
What was Bajaj Finance’s Q2 FY27 profit?
Bajaj Finance reported consolidated profit after tax before minority interest of ₹6,367 crore for the quarter ended September 30, 2026. That was 29% higher than the ₹4,948 crore reported a year earlier, supported by loan growth and a 24% increase in net interest income.
How fast did Bajaj Finance’s loan book grow?
Assets under management increased 26% year on year to ₹5,84,624 crore at the end of September 2026. The lender booked 13.45 million new loans during the quarter and added 4.42 million customers, lifting its overall customer base to 128.85 million.
Did Bajaj Finance’s asset quality improve?
Headline asset quality improved year on year: gross NPA fell to 1.06% from 1.24%, while net NPA declined to 0.42% from 0.60%. However, Stage 2 and Stage 3 assets increased sequentially, so investors should continue monitoring credit costs and stressed-loan migration.
Did the results move Bajaj Finance shares?
No post-results reaction was available because the company released its earnings after Indian markets closed on October 19. The stock had already ended the session about 2.5% lower at ₹957.35 during a weak market, so that decline should not be presented as a response to the announcement.
