Bajaj Finance Limited – FY26 Results & Strategic Outlook

Date: 29 April 2026

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1. Executive Summary

• AUM: ₹509,975 cr (22% YoY) – crossed the ₹5 lakh cr milestone.
• Profit Before Tax (PBT): ₹27,630 cr FY26 (+23% YoY); Q4 PBT ₹7,552 cr (+26% YoY).
• Profit After Tax (PAT): ₹20,689 cr FY26 (+24% YoY); Q4 PAT ₹5,660 cr (+27% YoY).
• Customer Franchise: 119.33 million (up 17.51 million FY26).
• Capital Adequacy: CRAR 21.55% (Tier‑I 20.67%).
• Credit Quality: Net NPA 0.41% (down from 0.44%); provisioning coverage 60% on Stage‑3 assets.
• Dividend: Final dividend ₹6.00 per share (incl. ₹0.60 special payout).

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2. Key Financial Highlights

Metric	FY26	YoY	Q4 FY26	YoY
AUM	₹509,975 cr	+22%	—	—
Net Interest Income	₹44,110 cr	+21%	₹11,781 cr	+20%
Net Total Income	₹53,324 cr	+21%	₹14,468 cr	+21%
Pre‑provision Operating Profit	₹35,548 cr	+22%	₹9,667 cr	+21%
ROE (annualised)	19.2%	—	20.0% (Q4)	—
ROA (annualised)	4.6%	—	4.7% (Q4)	—
Opex / NTI	33.3%	–0.6 pts	33.8% (Q4)	+0.2 pts
Cost of Funds	7.54%	–43 bps	7.41% (Q4)	–4 bps
Net NPA	0.41%	–0.03 pts	0.41% (Q4)	–0.03 pts
CRAR	21.55%	—	—	—

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3. Business Segment Performance

• Bajaj Housing Finance (BHFL): AUM ₹140,706 cr (+23%); PAT ₹669 cr (+20% YoY). Capital adequacy 22.46%.
• Bajaj Financial Securities (BFSL): AUM ₹7,984 cr (+77%); PAT ₹54 cr (+50% YoY). ROE 12.0%.
• Consumer & Rural Lending: New loans grew 20% YoY to 12.89 MM in Q4; rural AUM up 25% YoY.
• Distribution Network: Added 46 new locations and 1,600 distribution points in Q4; total footprint 4,098 locations and >242 K POS.

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4. FINAI (AI) Transformation

Stage	Q4 FY26 Metric	FY27 Target
People	203 AI‑dedicated employees	363
Data for AI	31 MM voice‑to‑data, 0.5 MM text‑to‑data	200 MM voice, 2.6 MM text
Customer Engagement	10 AI voice bots, 17 AI text bots	24 voice, 32 text
Branch Ops	60 face‑recognition cameras in stores	1,000
Automation	6,632 AI‑text bot receipts (Q4)	650 K FY27

AI initiatives are expected to improve underwriting speed, reduce operating costs, and generate incremental loan volumes (≈5 lakh new accounts FY27).

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5. Credit Quality & Risk Management

• Loan Losses & Provisions: ₹8.73 cr FY26 (15% YoY) – higher due to additional ECL provisions but ratio fell to 1.93% (vs 2.07% FY25).
• Stage‑2/3 Assets: Net reduction of Stage‑3 assets by ₹761 cr in Q4, indicating improving asset quality.
• Provisioning Coverage: 60% on Stage‑3 assets, stable year‑on‑year.
• Regulatory Compliance: Adhered to RBI’s FREE‑AI policy; AI governance framework completed (Q4 FY26).

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6. Capital, Liquidity & Dividend

• Liquidity Buffer: ₹15,020 cr (Q4).
• Deposit Base: ₹68,533 cr (16% of borrowings).
• Dividend: ₹6.00 per share (incl. ₹0.60 special), reflecting confidence in cash generation.

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7. FY27 Outlook & Guidance

• AUM Growth: Expected 22‑24% YoY, driven by new product launches and AI‑enabled cross‑sell.
• Customer Additions: Target 15‑17 million new customers.
• NIM: Slight moderation anticipated.
• Non‑interest Income: Projected 16‑18% growth.
• Opex / NTI: Expected improvement of 25‑40 bps.
• Credit Cost: Net loan loss to AUF targeted at 1.45‑1.60%.
• ROE: Anticipated 19‑20%.

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8. Risks & Opportunities

Risks

• Macro‑economic slowdown affecting loan demand and credit quality.
• Higher provisioning if asset quality deteriorates.
• Regulatory changes (e.g., New Labour Codes) could increase operating costs.

Opportunities

• Scaling FINAI to unlock cost efficiencies and new revenue streams.
• Expanding deposit franchise to lower cost of funds.
• Leveraging cross‑sell across housing, consumer, and securities businesses.

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9. Conclusion

Bajaj Finance delivered a strong FY26 with solid earnings growth, a healthy balance sheet, and a clear AI‑driven strategic roadmap. While macro‑economic and regulatory headwinds remain, the company’s capital strength, improving asset quality, and ambitious FY27 targets position it well for continued value creation for shareholders.