- How Did Bajaj Finance Perform in Q1 FY26?
- What About the Loan Quality of Bajaj Finance?
- What Does 1.03% Gross NPA Mean?
- Standalone Bajaj Finance Ltd. (Core Business)
- Subsidiaries and Associates: Let’s Look at Their Performance
- Other Key Points
- Key takeaways for Bajaj Finance results
Bajaj Finance has posted strong results for the April–June quarter (Q1 FY26), showing solid growth in new loans, income, and profit. The company also added a large number of new customers. However, there was a small increase in loan defaults, which investors should keep an eye on.
How Did Bajaj Finance Perform in Q1 FY26?
Here are the key numbers compared to the same quarter last year (Q1 FY25):
- Net Interest Income (NII): ₹10,227 crore, up 22% from ₹8,365 crore a year ago
- New Loans Booked: 13.49 million loans were given this quarter, up 23% from 10.97 million last year
- Customer Franchise: Total number of customers reached 106.51 million, up 21% YoY
- Assets Under Management (AUM): ₹4.41 lakh crore, which is 25% higher than last year
- Net Profit: ₹4,765 crore, an increase of 22% YoY
These figures show strong business growth and a solid profit jump.
What About the Loan Quality of Bajaj Finance?
This is where there was a bit of concern in Bajaj Finance. NPAs have increased on a year-on-year basis
- Gross NPA (bad loans before provisions): 1.03%, up from 0.86% last year
- Net NPA (after provisions): 0.50%, up from 0.38%
- Provisions: ₹2,120 crore, which is 26% higher than Q1 last year
What Does 1.03% Gross NPA Mean?
It means that for every ₹100 the company has loaned out, ₹1.03 is currently at risk of not being paid back on time. While the number is still low, the increase from 0.86% last year shows a slight rise in loan defaults. It’s not alarming yet, but something to watch.
Standalone Bajaj Finance Ltd. (Core Business)
This includes the main lending business, without the subsidiaries:
- AUM: ₹3.25 lakh crore, up 24% YoY
- Net Profit: ₹4,133 crore, increased by 22%
- NII: ₹9,269 crore, grew 21%
- Gross NPA / Net NPA: 1.28% / 0.63% (both slightly up YoY)
- Capital Adequacy Ratio: 21.96% (well above the minimum required)
Subsidiaries and Associates: Let’s Look at Their Performance
The consolidated results include these subsidiaries and associate companies: The company has 2 subsidiaries, Bajaj Housing and Bajaj Financial Securities, with 88.7% and 26.53% stake, respectively. Bajaj Finance also holds 41.5% in Snapwork Technologies Pvt Ltd and 26.53% in Pennant Technologies Pvt Ltd. Let’s also look at the financial performance of their subsidiaries.
Bajaj Housing Finance Ltd (BHFL)
- AUM: ₹1.20 lakh crore, 24% growth YoY
- Net Profit: ₹583 crore, up 21%
- NII: ₹887 crore, up 33%
- Gross NPA / Net NPA: Very low at 0.30% / 0.13%
Bajaj Financial Securities Ltd (BFinsec)
- Assets Under Finance: ₹6,098 crore, up 39% YoY
- Net Profit: ₹41 crore, up 37%
- NII: ₹63 crore, grew 31%
Performance for associates like Snapwork and Pennant was not shared in detail.
Other Key Points
- EPS (Earnings Per Share): ₹7.57 (Basic), not annualized
- Debt-to-Equity Ratio: 3.65 (comfortable level for NBFCs)
- Net Worth: ₹1.01 lakh crore
Key takeaways for Bajaj Finance results
Bajaj Finance had a good quarter overall. Business is growing fast, with more customers, more loans, and higher profits.
However, the rise in NPAs (bad loans) and higher provisions shows that repayment stress is slightly increasing. It’s not a big worry yet, but worth tracking in the next few quarters.
If you’re a long-term investor, the company’s strong growth and large customer base still make it a solid player; just keep an eye on how asset quality evolves going forward.
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