Bajaj Finance reported a 29% year-on-year rise in consolidated net profit to ₹6,266 crore for the second quarter of FY27, supported by strong growth in its assets under management (AUM) and net interest income (NII).
The non-banking financial company (NBFC) reported a net profit of Rs 4,875 crore in the corresponding quarter last year. Net interest income increased 24% to Rs 13,335 crore, while net total income rose 23% to Rs 15,974 crore for the quarter ended September 30, 2026.
The results, announced after market hours on October 19, reflect continued expansion in lending and customer acquisition, alongside an improvement in reported asset quality.
Loan Book Expands 26% to Rs 5.85 Lakh Crore
Bajaj Finance's assets under management grew 26% year-on-year to ₹5,84,624 crore as of September 30, 2026, compared with Rs 4,62,261 crore a year earlier. The company added Rs 37,680 crore to its AUM during the quarter.
Its customer franchise expanded 16% to 128.85 million from 110.64 million a year earlier. The company booked 13.45 million new loans during Q2 FY27, up 11% from 12.17 million in the corresponding quarter last year.
The growth in customers and lending assets points to continued demand across its consumer and business lending operations. However, the pace of expansion also makes credit quality and the cost of managing loan defaults important indicators for investors.
Asset Quality Improves Despite Higher Provisions
Bajaj Finance reported gross non performing assets (GNPA) of 1.06% and net non performing assets (NNPA) of 0.42% as of September 30, 2026. Both ratios improved from 1.24% and 0.60%, respectively, a year earlier.
Loan losses and provisions stood at Rs 2,166 crore, compared with Rs 2,080 crore in Q2 FY26. The latest quarter included Rs 337 crore in additional management and macroeconomic provisions.
Excluding those provisions, loan losses and provisions were Rs 1,829 crore, down 12% year-on-year, according to the company's exchange filing. The improvement suggests lower underlying credit costs, although the additional buffer reflects continued caution around the economic environment.
Bajaj Finance Shares Close 2.5% Lower
Bajaj Finance shares closed 2.5% lower at Rs 957.35 on October 19, before the company announced its quarterly results after market hours. The share-price movement therefore does not reflect a market reaction to the published results.
The next trading sessions will give investors an opportunity to assess the results alongside the company's outlook for loan growth, credit costs and profitability.
For the NBFC, the central challenge is to sustain its lending growth while keeping defaults under control. Improving asset-quality ratios and rising net interest income are encouraging indicators, but investors will also watch operating costs, funding expenses and the quality of incremental lending.
