Bajaj Finance reported a 28.7% year-on-year increase in consolidated net profit to ₹6,366.57 crore for the second quarter of FY27, supported by higher interest income, expanding lending operations and growth in its customer base. Net interest income (NII), a key measure of a lender’s core earnings from lending, rose 23.6% to ₹13,335 crore for the quarter ended September 30, 2026. The results were announced on October 19.
The non-banking financial company (NBFC) also reported a 26% increase in assets under management (AUM) to ₹5.85 lakh crore, while new loan bookings rose 11% to 13.45 million. Its customer franchise expanded to 128.85 million. However, the results also require attention to funding costs, provisions and asset quality as the company continues to grow its lending book. Bajaj Finance has separately proposed raising up to ₹17,500 crore through a qualified institutional placement and preferential warrants, subject to the necessary approvals.
Key Takeaways
- Consolidated net profit: Rose 28.7% to ₹6,366.57 crore from ₹4,947.76 crore a year earlier.
- Net interest income: Increased 23.6% to ₹13,335 crore.
- Assets under management: Grew 26% to ₹5.85 lakh crore.
- New loan bookings: Increased 11% to 13.45 million.
- Customer franchise: Reached 128.85 million, up 16% year-on-year.
- Asset quality: Gross non-performing assets stood at 1.06% and net NPAs at 0.42%.
- Fundraising plan: The company has proposed raising up to ₹11,700 crore through a qualified institutional placement and up to ₹5,800 crore through preferential warrants, subject to approvals.
Bajaj Finance Q2 FY27 Results at a Glance
The September-quarter results show growth across profitability, interest income and lending activity. Consolidated profit rose faster than the company’s customer franchise, while AUM growth indicates that the overall lending and financial-services portfolio continued to expand.
| Financial metric | Q2 FY27 | Year-on-year change |
|---|---|---|
| Consolidated net profit | ₹6,366.57 crore | +28.7% |
| Net interest income | ₹13,335 crore | +23.6% |
| Net total income | ₹15,974 crore | +23% |
| Assets under management | ₹5.85 lakh crore | +26% |
| New loans booked | 13.45 million | +11% |
| Customer franchise | 128.85 million | +16% |
| Gross NPA ratio | 1.06% | — |
| Net NPA ratio | 0.42% | — |
Source: Company results and financial reporting published on October 19, 2026. Figures are rounded where appropriate.
The figures indicate that Bajaj Finance continues to expand its lending operations while increasing its earnings. The next question is how effectively the company can maintain this growth while managing the cost of funds, credit losses and capital requirements.
Net Profit Rises Nearly 29% Year-on-Year
Bajaj Finance’s consolidated net profit increased to ₹6,366.57 crore in Q2 FY27, compared with ₹4,947.76 crore in the corresponding quarter last year. This represents growth of approximately 28.7%.
The increase reflects the company’s larger lending portfolio and higher net interest income. For an NBFC, interest earned on loans is a major source of revenue, while funding costs, operating expenses and credit-loss provisions influence how much of that revenue becomes profit.
The company’s standalone results showed net profit of ₹5,536.10 crore, up 30.2% from ₹4,250.77 crore in Q2 FY26. The consolidated figure is higher because it includes the performance of subsidiaries and other consolidated entities.
This distinction matters when comparing reports. The consolidated result is generally the more comprehensive measure of the group’s financial performance, while standalone figures reflect Bajaj Finance Limited itself.
Profit growth is a positive indicator, but it does not independently establish whether the company’s shares are attractively valued. Investors also assess earnings sustainability, credit quality, capital requirements and the price at which the stock trades.
Net Interest Income Climbs 24%
Net interest income rose 23.6% year-on-year to ₹13,335 crore from ₹10,785 crore. NII is calculated as the interest a lender earns on loans and other interest-bearing assets minus the interest it pays on deposits and borrowings.
It is one of the most important indicators of a lender’s underlying earning capacity. When a finance company expands its loan book, NII can increase if it generates sufficient interest income relative to its funding expenses.
Bajaj Finance’s NII growth was supported by an expanding AUM base and higher lending activity. Net total income increased 23% to ₹15,974 crore, according to the reported results.
However, rising NII does not mean that every additional rupee of interest income becomes profit. The company must still cover employee costs, technology expenses, distribution costs, credit losses and other operating expenses.
Funding costs are particularly important for an NBFC because the business depends on raising money through deposits, borrowings and other financial instruments. If borrowing costs increase faster than the yield earned on loans, lending margins can come under pressure.
Bajaj Finance’s ability to preserve its net interest margin will therefore remain an important indicator in future quarters.
AUM Grows 26% to ₹5.85 Lakh Crore
Bajaj Finance’s consolidated assets under management increased to approximately ₹5.85 lakh crore as of September 30, 2026, up 26% from ₹4.62 lakh crore a year earlier.
AUM represents the value of loans and other assets managed by the company. It is an important measure of the scale of an NBFC’s lending operations, although the precise composition depends on the company’s reporting methodology.
The company added ₹37,680 crore to its AUM during the quarter, according to reported figures. The expansion suggests that demand for its credit products remained substantial across its customer segments.
Growth in AUM can support future interest income, but the quality of that growth matters. A lender must assess whether borrowers can repay their loans, whether lending is appropriately priced for risk and whether collections remain effective.
Rapid expansion can also increase funding needs. A larger portfolio requires capital and access to stable financing, making the management of liquidity and borrowing costs essential.
For Bajaj Finance, sustaining AUM growth while maintaining disciplined underwriting will be important to preserving profitability over the longer term.
New Loan Bookings and Customer Base Expand
Bajaj Finance booked 13.45 million new loans in Q2 FY27, an increase of 11% from 12.17 million in the year-ago quarter. The company added 4.42 million customers during the period, taking its total customer franchise to 128.85 million, up 16% year-on-year.
These figures demonstrate the scale of the company’s customer acquisition and lending operations. A broad customer base gives an NBFC opportunities to offer multiple financial products, deepen relationships and expand its presence across consumer and business lending.
However, the number of loans booked should not be treated as equivalent to the number of unique customers. A customer may take more than one loan, and loan bookings can differ in size, tenure and risk profile.
Customer growth also needs to be evaluated alongside repayment behaviour. New customers can create future revenue opportunities, but the quality of underwriting and the effectiveness of collection systems determine whether that expansion translates into sustainable returns.
The company will need to maintain a balance between growth and credit discipline as it adds customers and expands its product offerings.
Asset Quality and Provisions Remain Important
Bajaj Finance reported a gross non-performing asset ratio of 1.06% and a net NPA ratio of 0.42%. These ratios measure the proportion of the loan portfolio classified as non-performing before and after accounting for provisions, respectively, under the applicable reporting framework.
The reported levels provide a snapshot of asset quality, but they do not eliminate credit risk. Investors also examine changes in overdue loans, collections, write-offs, recoveries and the amount set aside for potential losses.
Total provisions were reported at approximately ₹2,166 crore. The company also indicated that adjusted loan losses declined 12%, while provisions included additional macroeconomic buffers. Those measures should be considered together rather than interpreting the provision total in isolation.
Provisions can fluctuate as lenders update their expectations about defaults and the economic environment. A higher provision charge may weigh on current earnings, but adequate provisioning can also strengthen the company’s ability to absorb future losses.
The performance of consumer loans, small-business lending and other credit segments will remain important as the portfolio grows. Even when headline NPA ratios are low, changes in borrower repayment behaviour can affect future profitability.
Funding Costs and Capital Adequacy
Bajaj Finance reported a cost of funds of 7.31% and a capital adequacy ratio of 20.33%, according to the reported quarterly figures. The cost of funds reflects the expense of financing lending operations, while capital adequacy indicates the cushion available to absorb losses relative to the risks on the balance sheet.
A lower funding cost can help a lender maintain margins, provided the interest earned on its assets and its other expenses remain favourable. Capital adequacy, meanwhile, is important because lending growth increases the amount of capital required to support risk-weighted assets.
The company’s capital position will be especially relevant as it pursues further growth and considers raising additional funds. A stronger capital base can support lending expansion, provide a buffer against losses and help maintain compliance with regulatory requirements.
Investors will want to understand how much additional capital is required, how the funds would be used and how any new share issuance could affect existing shareholders.
Bajaj Finance Proposes Raising Up to ₹17,500 Crore
Alongside its quarterly results, Bajaj Finance has proposed raising up to ₹11,700 crore through a qualified institutional placement (QIP) and up to ₹5,800 crore through preferential warrants. The proposals are subject to the necessary approvals and applicable conditions.
A QIP allows an eligible listed company to issue securities to qualified institutional buyers. Preferential warrants provide the right to subscribe to shares later under specified terms and timelines.
The two proposals could provide Bajaj Finance with additional capital to support business expansion and its balance-sheet requirements. However, the final amount raised, pricing, timing and terms will depend on approvals and the execution of the proposed transactions.
Equity fundraising can strengthen a lender’s capital base, but issuing new shares can dilute the ownership percentage of existing shareholders if they do not participate proportionately. Investors should therefore assess both the potential benefits of additional capital and the terms of any issuance.
The proposed fundraising is separate from the company’s quarterly earnings performance. It does not, by itself, guarantee faster growth or higher future profits.
The Bigger Picture
Bajaj Finance’s Q2 FY27 results show continued growth in earnings, interest income, AUM and customer acquisition. The 28.7% increase in consolidated net profit and 26% expansion in AUM point to a lender operating at a larger scale, while reported NPA ratios offer a snapshot of asset quality. The sustainability of these results will depend on the company’s ability to preserve lending margins and manage credit risk as its portfolio grows.
The proposed ₹17,500 crore fundraising plan adds another dimension to the company’s strategy. Additional capital could support future lending and strengthen financial flexibility, but investors will need to consider the terms of the issuance and any potential dilution. For the next few quarters, funding costs, provisions, loan growth and asset quality will be key indicators of whether Bajaj Finance can sustain its current growth trajectory.
Looking Ahead
Investors will be watching management’s commentary on loan demand, funding costs, credit losses and the proposed capital raising. The company’s ability to keep AUM growing while maintaining disciplined underwriting will be central to its earnings outlook. The final terms and approvals for the QIP and preferential warrants will also determine how the additional capital affects its balance sheet and shareholders.
The September-quarter performance reinforces Bajaj Finance’s position as a large player in India’s non-bank lending market, but strong year-on-year growth should be considered alongside valuation and risk. Future results will show whether earnings can continue to expand without a material deterioration in asset quality or pressure on margins. As with any listed financial stock, investors should review the full disclosures and their own risk tolerance rather than relying on quarterly profit growth alone.
Frequently Asked Questions
1. What was Bajaj Finance’s Q2 FY27 consolidated net profit?
Bajaj Finance reported consolidated net profit of ₹6,366.57 crore for the quarter ended September 30, 2026, up approximately 28.7% year-on-year.
2. How much did Bajaj Finance’s net interest income increase?
Net interest income rose 23.6% year-on-year to ₹13,335 crore from ₹10,785 crore.
3. What was Bajaj Finance’s AUM in Q2 FY27?
Consolidated assets under management stood at approximately ₹5.85 lakh crore on September 30, 2026, up 26% year-on-year.
4. What were Bajaj Finance’s gross and net NPA ratios?
The company reported a gross NPA ratio of 1.06% and a net NPA ratio of 0.42%.
5. How many new loans did Bajaj Finance book in the quarter?
Bajaj Finance booked 13.45 million new loans in Q2 FY27, up 11% from the same quarter last year.
6. How much capital does Bajaj Finance plan to raise?
The company has proposed raising up to ₹11,700 crore through a QIP and up to ₹5,800 crore through preferential warrants, subject to approvals and applicable conditions.
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