Bajaj Finance Q4FY26: Net profit rises 22%
- 30th April 2026
- 07:00 PM
- 3 min read
Summary
Bajaj Finance reported a 22.2% year-on-year rise in net profit to INR 55,533mn for Q4FY26, supported by broad-based AUM growth and improving asset quality. The NBFC declared a final dividend of INR 6 per share for FY26. Rajiv Bajaj will step down as Non-Executive Director at the company's AGM on 30 July 2026. Bajaj Finance posted net profit of INR 55,533mn in Q4FY26, up 22.2% year-on-year, as loan growth remained broad-based and asset quality improved across segments.Mumbai | 30 April 2026
How did Bajaj Finance perform in Q4FY26?
Net interest income grew 20.1% year-on-year and 4.1% quarter-on-quarter to INR 117,806mn. Pre-provision operating profit rose 20.5% year-on-year to INR 94,174mn. For the full year FY26, PAT stood at INR 193,324mn, up 15.2% over FY25.
The board recommended a final dividend of INR 6 per share for FY26. This includes a special payout of INR 0.60 per share from the exceptional gain on the sale of Bajaj Housing Finance shares. The record date is 30 June 2026.
What drove AUM growth in Q4FY26?
Assets under management grew 22.4% year-on-year and 5.3% quarter-on-quarter to INR 5,099.8bn, per PL Capital Research. Growth was led by mortgages (+25.2% YoY), urban sales finance (+28.6% YoY), urban B2C (+19.1% YoY), and commercial lending (+22% YoY).
New product launches contributed 3.5% of the AUM mix, with gold loans, microfinance, and tractor financing seeing strong traction. New loans booked in Q4FY26 grew 20.5% year-on-year to 12.9mn. Bajaj Finance added 3.9mn new customers during the quarter, taking its total customer franchise to 119.3mn.
The company proactively slowed MSME volumes in FY26 due to higher delinquencies in the segment, with growth restricted to 6% year-on-year. Captive two-wheeler and three-wheeler finance declined 60% year-on-year and now accounts for less than 1% of AUM.
How did asset quality trend in the quarter?
Headline GNPA improved sequentially to 1.0% from 1.2% in Q3FY26. NNPA improved to 0.4% from 0.5% in Q3FY26. Provision coverage ratio stood at 60%, per PL Capital Research.
Bajaj Finance recorded an additional ECL provision of INR 1.4bn as a buffer for management and macroeconomic overlay. The company revised its accounting for recoveries on written-off loans, adjusting them towards loan losses. Management guided credit cost in the range of 1.45–1.60% for FY27.
What is the outlook on margins and costs?
NIM moderated to 9.6% in Q4FY26 from 9.7% in Q3FY26. Reported cost of funds stood at 7.41%, improving four basis points over Q3FY26. Management expects marginal NIM compression in subsequent quarters as bond yields harden.
The opex-to-NTI ratio stood at 33.8% in FY26, elevated by the impact of the new labour code and accelerated gold loan branch expansion. Management expects this ratio to improve by 25–40 basis points in FY27, driven by efficiency gains from its FINAI capabilities. Capital adequacy stood at 21.55% as of 31 March 2026, with Tier-1 capital at 20.67%.
Rajiv Bajaj to step down from board
Rajiv Bajaj has informed the company that he will not offer himself for re-election at the upcoming annual general meeting. He will cease to be Non-Executive Director at the AGM scheduled for 30 July 2026, per a stock exchange filing.
Outlook
Management guided AUM growth of 22–24% for FY27, supported by new business launches and continued customer addition. The company remains confident of adding 15–17mn new customers in FY27. MSME stress is expected to normalise, with the segment returning to double-digit growth by H2FY27. Gold loans are expected to cross 5% of total AUM by FY27 as branch expansion continues. Management also guided non-interest income growth of 16–18% for the year ahead.
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