Bajaj Finance (BAJFINANCE) Q4 25/26 earnings summary

Executive summary

• Achieved AUM milestone of ₹5 lakh crore (INR 510,000 crore), up 22% year-over-year, with PAT up 26.7%–27% YoY before one-time actions and consolidated FY26 PAT at ₹19,332 crore, up 15% YoY.

• Booked 52.5 million loans in FY26, up 21% YoY, and added 17.5 million new customers, with customer franchise reaching 119.33 million.

• AI-driven transformation accelerated, with significant investments in talent and technology, improving operational efficiency and customer experience.

• Gold loan portfolio grew 115% YoY, now 3.5% of AUM, expected to reach 5% by FY 2027; MSME segment growth muted at 6% due to risk actions.

• Board recommended a final dividend of ₹6 per share for FY26, including a special payout from BHFL share sale gain.

Financial highlights

• Q4 FY26 AUM up 22% YoY to ₹509,975 crore; net interest income up 20% YoY to ₹11,781 crore; net total income up 21% YoY to ₹14,209 crore.

• Cost of funds improved to 7.41% in Q4 FY26; deposit book at ₹68,536 crore, contributing 16% to consolidated borrowings.

• OpEx to NTI at 33.8% in Q4 FY26, up slightly due to labor code and branch expansion.

• Loan loss to average AUM at 1.65%–1.75% in Q4 FY26, down from 1.97%–2.17% YoY; provision coverage ratio at 60%.

• GNPA at 1.01%, NNPA at 0.41%; capital adequacy at 21.55% as of March 31, 2026.

Outlook and guidance

• FY 2027 AUM growth guided at 22%–24%, with 15–17 million new customers expected.

• NIM expected to see marginal moderation; non-interest income growth of 16%–18%.

• OpEx to NTI expected to improve by 25–40 bps; credit cost guidance at 1.45%–1.60% of AUM.

• ROA guidance at 4.4%–4.6%, ROE at 19%–20%; GNPA and NNPA to remain below long-term guidance.

• Growth stance maintained across all segments, with gold loans and new businesses expected to outpace overall AUM growth.