Bajaj Finserv Q2 profit rises 25% to Rs 5,952 crore

Bajaj Finserv's September-quarter profit rose 25.4% to Rs 5,952 crore on lending growth, while its general insurance arm saw profit fall 18.8%.

Bajaj Finserv, the holding company behind Bajaj Finance, Bajaj Housing Finance and two insurers, reported consolidated revenue of Rs 43,416 crore and profit after tax of Rs 5,952 crore for the July to September 2026 quarter. Revenue rose 16.7% and profit 25.4% from a year earlier, according to the results as reported by Kotak Neo on 3 November. The lending arms did most of the work, while the general insurer's profit fell.

What the group reported

For the half year to September, group revenue was Rs 85,453 crore, up 17.8%, and profit after tax was Rs 12,249 crore, up 21.6%. Profit attributable to the owners of the company, which excludes the share held by minority shareholders in subsidiaries, was up 22.9% for the quarter and Rs 5,890 crore for the half year, up 17%. Consolidated net worth stood at Rs 83,974 crore against Rs 76,490 crore a year earlier. All these are company-reported figures from the exchange filing as summarised by Kotak Neo, and none has been independently checked here.

Bajaj Finserv shares closed at Rs 1,718.10 on the NSE on 3 November, up 1.57%, per the same report.

Bajaj Finance: the profit engine

Bajaj Finance, the non-bank lender that is the group's largest business, reported its numbers earlier, on 19 October. Kotak Neo's report on those results gives consolidated profit after tax of about Rs 6,367 crore, up 29% from Rs 4,948 crore. The group results page, however, gives the figure as Rs 6,267 crore, up 28.5%. The two pages differ by Rs 100 crore, and this briefing cannot tell which is right without the filing. Either way, growth is close to 29%.

Assets under management (AUM), the total loans the company manages, were Rs 5,84,624 crore, up 26% to 26.5% depending on the report, with Rs 37,680 crore added in the quarter. The company booked 13.45 million new loans in the quarter and added 4.42 million customers, taking its customer base to 128.85 million.

The asset-quality numbers stand out. As of 30 September, gross NPA was 1.06% and net NPA was 0.42%, according to Kotak Neo. Gross NPA is the share of loans where borrowers have stopped paying for 90 days; net NPA subtracts the provisions already set aside. Loan losses and provisions were Rs 2,166 crore, including a Rs 337 crore provision the company made for management and macroeconomic risks. Excluding that extra provision, losses and provisions were Rs 1,829 crore, down 12% from a year earlier.

That Rs 337 crore deserves a plain-English explanation. A management overlay is money a lender sets aside on its own judgement, over and above what its models say, to guard against stress that has not yet shown up in the data. It lowers this quarter's profit and suggests management is cautious about borrowers, even as reported delinquencies look good. The company has not been quoted explaining its reasoning in the sources read here.

The housing lender grows, with slightly higher stress

Bajaj Housing Finance posted a profit after tax of Rs 757 crore, up 17.7% from Rs 643 crore, per the Free Press Journal's report on its filing. AUM was Rs 1,58,205 crore, up 25% from Rs 1,26,749 crore. Its capital adequacy ratio was 21.24%, a strong cushion. Gross NPA edged up to 0.29% from 0.26%, while net NPA was unchanged at 0.12%. That rise is tiny, but it is the direction to watch in a home-loan book that has grown by a quarter in a year.

The insurance arms: one up, one down

The group's insurers moved in opposite directions. Bajaj General Insurance's gross written premium, the total premium it sold, rose 10% to Rs 7,056 crore, or 21.3% excluding crop and government health business. But its profit after tax fell 18.8% to Rs 420 crore. Premium growth and profit growth do not always travel together: insurers pay out claims and set aside reserves, so a year in which claims rise faster than premiums squeezes profit.

Bajaj Life Insurance did better. Gross written premium was Rs 10,277 crore, up 22.8%, and the value of new business, an estimate of the future profit from policies sold in the period, rose 39.6% to Rs 512 crore. Its margin on new business rose to 21.6% from 17.1%. Its profit after tax was Rs 55 crore against Rs 13 crore a year earlier.

What it means for borrowers and the lending sector

For borrowers, the numbers show that one of the largest lenders to consumers and small businesses is still growing loans at around a quarter a year with low reported delinquencies. That usually means credit is available to people with reasonable repayment records. It does not mean it is cheap. Lenders that grow this fast can afford to be selective, and many borrowers will see approvals depend on their credit score and income.

For the wider non-bank lending industry, the Rs 337 crore overlay is a small signal that a top-tier lender is leaving room for trouble. Rising stress in unsecured personal loans has been a worry for regulators in recent years, and a lender choosing to over-provision is a reasonable hedge. Investors and analysts will compare it with peers' overlays as more results arrive.

For insurance buyers, the general insurer's profit fall is a reminder that premium growth is not the same as underwriting profit. The sources read do not say why profit fell, so this briefing does not guess.

The simulator below shows how provisions affect profit. It uses Bajaj Finance's reported loan-loss provisions of Rs 2,166 crore and profit before tax of about Rs 8,537 crore. Profit before provisions is worked out as the sum of the two, an assumption for illustration, and the tax rate is set so that profit after tax lands near the reported Rs 6,267 crore.

What the numbers do not tell us

The pages read leave several questions open, and it is worth listing them. They do not report net interest margin, the spread a lender earns between loan yields and its funding cost, so it is not possible to say whether growth came at the expense of margin. They do not report credit cost as a percentage of loans, only the rupee amount of provisions. And they do not break down the customer base by product, so the share of unsecured personal loans, the segment that has worried regulators, is unknown here. Bajaj Finance shares closed at Rs 957.35 on 19 October, down 2.52% on the day its results came out, but the report does not say why, so no cause should be assumed.

What to watch next

Two things will matter in the coming weeks. First, the full filings and investor presentation from Bajaj Finserv and Bajaj Finance should resolve the profit-figure difference and show net interest margin and credit cost, neither of which the pages read here report. Second, results from other large non-bank lenders will show whether stress in unsecured loans is spreading, and whether others are building similar overlays. The RBI's next policy review, with a decision on the repo rate, will set funding costs for the whole sector.

Key takeaways

- Bajaj Finserv reported consolidated revenue of Rs 43,416 crore and profit of Rs 5,952 crore for the September 2026 quarter, up 16.7% and 25.4%. - Bajaj Finance's AUM was Rs 5,84,624 crore, up about 26%, with gross NPA at 1.06% and net NPA at 0.42%. - The lender set aside a Rs 337 crore management overlay; without it, loan losses and provisions fell 12% year on year. - Bajaj General Insurance profit fell 18.8% to Rs 420 crore, while Bajaj Life's value of new business rose 39.6%. - Reports give two profit figures for Bajaj Finance, Rs 6,267 crore and Rs 6,367 crore, so the filing should be checked.

Sources

- [Kotak Neo: Bajaj Finserv Q2 FY27 results, shares in focus](https://www.kotakneo.com/news/stocks/bajaj-finserv-q2-fy27-results-shares-in-focus/) - [Kotak Neo: Bajaj Finance share price and Q2 FY27 results](https://www.kotakneo.com/news/stocks/bajaj-finance-share-price-and-q2-fy-27-results/) - [Free Press Journal: Bajaj Housing Finance Q2 FY27 results](https://www.freepressjournal.in/business/bajaj-housing-finance-q2-fy27-results-net-profit-rises-18-to-757-crore-revenue-jumps-18)

Tags: Bajaj Finserv NBFC Quarterly results Asset quality Insurance