Bajaj Finance Q2 Profit Rises 29% to ₹6,367 Crore; AUM Up 26%

Bajaj Finance Q2 results, declared after market close on 19 October, showed consolidated net profit up 29% year on year at ₹6,367 crore. Assets under management (AUM) increased 26% to ₹5.85 lakh crore, and the company raised its growth expectations for the year.

Profit stood at ₹6,366.57 crore for the July–September quarter against ₹4,947.76 crore in the corresponding quarter of the previous year, according to Reuters and data reported by Upstox. Net interest income increased 24% to ₹13,335 crore from ₹10,785 crore.

On a standalone basis, Bajaj Finance posted a net profit of ₹5,536.10 crore against ₹4,250.77 crore in the previous year. Consolidated profit before tax increased 29% to ₹8,537 crore, according to Kotak Neo, while the lender’s capital adequacy ratio was 20.33%, with Tier 1 at 19.43%.

Bajaj Finance Q2 results: the key numbers

The NBFC added ₹37,680 crore to its AUM during the quarter. According to Reuters, AUM growth was the fastest since the March 2025 quarter. Gold loans almost doubled from the previous year, and rural consumer finance increased 63%.

Lending to small businesses was sluggish, growing only 3%, as the company had tightened its underwriting criteria after higher delinquency levels. It booked 13.45 million new loans, up 11% from 12.17 million a year earlier.

Its customer franchise stood at 128.85 million at the end of September, after the company added 4.42 million customers in the quarter. Deposits were ₹69,754 crore, accounting for about 14% of consolidated borrowings.

Asset quality improves as Bajaj Finance AUM guidance is raised

Gross NPAs fell to 1.06% from 1.24% in the corresponding period last year, while net NPAs decreased to 0.42% from 0.60%. Gross NPAs had stood at 0.96% in the previous quarter, according to Reuters, which means the ratio edged up sequentially.

Credit cost stood at 1.56% compared with 1.88% a year earlier. Provisions and loan losses were ₹2,166 crore, including a ₹337 crore management overlay towards macroeconomic risks. Excluding the overlay, provisions decreased 12% year on year, data reported by Kotak Neo showed.

Vice Chairman and Managing Director Rajeev Jain called it “an excellent quarter” across key metrics on the earnings call held after the results, according to a transcript published by Investing.com. Bajaj Finance AUM growth guidance for FY27 was raised to 26–27% from 23–25%, while the medium-term target remains unchanged at 23–25%.

The company expects to book 60–62 million new loans in FY27 and add 18–20 million customers. Net interest margins may moderate slightly as interest rates rise, according to management, and the company plans to increase its gold-loan branches to around 2,800 by the year-end.

Why these NBFC earnings matter for investors

Bajaj Finance is the largest NBFC in India and is seen as a proxy for consumer credit demand. Its parent company, Bajaj Finserv, holds 51.30% of the company. Subsidiary Bajaj Housing Finance reported an 18% increase in quarterly profit to ₹757 crore.

The results come weeks ahead of a significant fund-raise. In early October, the board approved raising up to ₹17,500 crore, consisting of a qualified institutions placement (QIP) of up to ₹11,700 crore and preferential warrants to Bajaj Finserv worth up to ₹5,800 crore. Both will require shareholder approval at an extraordinary general meeting (EGM).

For investors, the NBFC earnings show that loan growth has picked up and asset quality is better than last year, a combination that was difficult to achieve while the company was reducing exposure to stressed segments. The ₹337 crore buffer suggests management is preparing for a higher interest rate environment.

Bajaj Finance shares ended 2.52% lower at ₹957.35 on the NSE on 19 October, before the results were announced. Investors will now watch how the market reacts to the Bajaj Finance Q2 results, whether shareholders approve the fund-raise, and whether the company can keep credit costs near current levels as interest rates rise. Readers can follow more quarterly results and corporate news coverage on Business ERA.