Bajaj Finance Q2 FY 2025-26 Financial Report: Detailed Earnings, Growth Trends & New Management Guidance
Bajaj Finance has released its Q2 FY 2025-26 (Q2 FY26) financial results, and the numbers paint a picture of strong, broad-based growth despite a cautious lending environment. As India’s largest diversified NBFC, Bajaj Finance continues to scale its balance sheet while protecting its profitability.
In this detailed, SEO-friendly report, we break down the company’s AUM growth, profitability, credit cost trends, customer metrics, and the updated management guidance for the rest of FY26. A full comparison table for Q2 FY26 vs Q1 FY26 vs Q2 FY25 is added for easy reference.
✅ Q2 FY26 Earnings: Strong Growth Across Assets & Profitability
Bajaj Finance reported a strong September quarter, posting 24% YoY AUM growth, solid demand in consumer and digital loans, and a significant increase in profitability.
Key Highlights of Q2 FY 2025-26
AUM: ₹4,62,261 crore (up 24% YoY)
Net Interest Income (NII): ₹10,785 crore (up 22% YoY)
Net Total Income: ₹13,170 crore (up 20% YoY)
PPOP: ₹8,874 crore (up 21% YoY)
PAT: ₹4,948 crore (up 23% YoY)
New Loans: 12.17 million
Customer Franchise: 110.64 million
From a scale perspective, Bajaj Finance continues to be in a class of its own, adding over 4.13 million new customers in Q2 alone. Strong traction in consumer finance, digital marketplace products, EMI card conversions, and secured loans helped push income higher despite a cautious lending backdrop.
✅ Performance Compared to Q1 FY26: Steady and Controlled Growth
Sequentially, Bajaj Finance has shown stable expansion:
AUM addition of ₹20,811 crore from Q1 to Q2
NII rose from ₹10,227 crore to ₹10,785 crore
PAT improved from ₹4,765 crore to ₹4,948 crore
Operating efficiency also held stable at 32.6%, reaffirming the company’s cost discipline and digital operating leverage.
✅ YOY Growth vs Q2 FY25: Bigger Customer Base, Stronger Income, Higher Credit Costs
Compared to Q2 FY24, Bajaj Finance has significantly expanded its scale:
AUM up from ₹3,73,924 crore → ₹4,62,261 crore
PAT up from ₹4,014 crore → ₹4,948 crore
NII up from ₹8,838 crore → ₹10,785 crore
However, Net NPA increased from 0.46% to 0.60%, reflecting the industry-wide unsecured stress cycle.
✅ Q2 FY26 Results Table: Q2 FY26 vs Q1 FY26 vs Q2 FY25
| Metric | Q2 FY26 | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| AUM (₹ crore) | 4,62,261 | 4,41,450 | 3,73,924 |
| Net Interest Income (₹ cr) | 10,785 | 10,227 | 8,838 |
| Net Total Income (₹ cr) | 13,170 | 12,610 | 10,946 |
| Operating Expenses (₹ cr) | 4,296 | — | 3,639 |
| PPOP (₹ cr) | 8,874 | 8,487 | 7,307 |
| Loan Losses & Provisions (₹ cr) | 2,269 | — | 1,909 |
| Profit Before Tax (₹ cr) | 6,608 | 6,368 | 5,401 |
| Profit After Tax (₹ cr) | 4,948 | 4,765 | 4,014 |
| Opex to Net Income | 32.6% | 32.7% | 33.2% |
| Net NPA | 0.60% | 0.50% | 0.46% |
| New Loans Booked (mn) | 12.17 | 13.49 | 9.69 |
| Customers Added (mn) | 4.13 | 4.69 | 3.98 |
| Customer Franchise (mn) | 110.64 | 106.51 | 92.09 |
✅ Management Guidance: Growth Cooling Slightly but Strategy Steady
The management of Bajaj Finance offered new guidance for the remaining part of FY26.
Here are the key strategic takeaways:
1️⃣ AUM Growth Guidance Reduced
New guidance: 22–23% growth for FY26
Previous guidance: 24–25%
Why?
The company is seeing early stress signs in MSME and unsecured loan buckets, prompting a risk-first approach.
2️⃣ MSME Book Under Tight Monitoring
Small business loans are showing pockets of stress
Underwriting has been tightened
Selection of profiles and sectors has been recalibrated
This is similar to steps taken across the NBFC sector.
3️⃣ Consumer Lending and Secured Businesses Remain Strong
Mortgage (housing finance), LAP, and co-branded consumer business continue to perform well.
4️⃣ Focus on Asset Quality Over Aggressive Growth
The priority for FY26 is to:
preserve ROA and ROE
reduce volatility in unsecured portfolios
consolidate digital and physical distribution gains
✅ Market View: What Investors Should Track in FY26
Based on the Q2 numbers and the new guidance, here are the big watch-points:
🔹 1. MSME & Unsecured Stress
Net NPA at 0.60% is still low for an NBFC, but the rising trend must be monitored.
🔹 2. Credit Cost Stability
Loan losses remain elevated at ₹2,269 crore for Q2.
If credit costs cool in H2, FY26 profitability could exceed expectations.
🔹 3. Growth in High-Quality Secured Loans
Housing finance (BHFL) posted strong earnings and remains the stabilising pillar of the group.
🔹 4. Digital Cross-Sell Expansion
The company’s digital ecosystem—app, marketplace, EMI card, co-branded products—is driving both new customer acquisition and repeat business.
✅ Conclusion: Bajaj Finance Delivers Stable, Risk-Conscious Growth in Q2 FY26
Bajaj Finance has once again posted a strong quarter, balancing growth with caution. AUM expansion, customer additions, and profitability all came in healthy, while management has proactively trimmed growth guidance to safeguard asset quality.
The combination of:
robust digital scale,
diversified credit engines,
tight cost control, and
a careful lending strategy
keeps Bajaj Finance well-positioned heading into H2 FY26.
For investors and financial readers, this quarter reinforces the company’s position as India’s most trusted NBFC with consistent long-term compounding potential.
