Bajaj Finance reported a 6.3% year-on-year decline in net profit, which fell to Rs 3,978 crore in the December quarter, compared with Rs 4,247 crore in the same period last year.
At the same time, the company’s core lending performance remained strong, with net interest income (NII) rising 21% YoY to Rs 11,318 crore from Rs 9,383 crore. Net interest margins stayed stable, indicating steady yield and funding dynamics during the quarter.
Bajaj Finance business growth indicators remained robust:
Bajaj Finance continued to witness strong balance-sheet expansion, with assets under management (AUM) rising 22% year-on-year to Rs 4.86 lakh crore as of December 31, 2025, compared with Rs 3.98 lakh crore in the year-ago period. During Q3 FY26 alone, the company added Rs 23,622 crore to its AUM.
Loan disbursement momentum also remained healthy, as new loans booked grew 15% YoY to 13.90 million in Q3 FY26, up from 12.06 million in the corresponding quarter last year.
The lender further expanded its customer base, adding 4.76 million customers during the quarter. Management expects this growth trend to continue, with 17–18 million new customers likely to be added in FY26.
Geographic footprint expanded to 4,052 locations.
Bajaj Finance’s liquidity and funding position stayed comfortable:
Bajaj Finance maintained a comfortable liquidity and funding position during the quarter. The company’s liquidity buffer stood at Rs 15,081 crore as of December 31, 2025, providing adequate headroom to support growth and obligations.
The cost of funds improved to 7.45%, marking a 7 basis point decline quarter-on-quarter. Management indicated that the cost of funds is expected to stay within the 7.55–7.60% range in FY26, reflecting stable funding conditions.
Meanwhile, the deposit franchise continued to strengthen, with the deposit book rising to Rs 71,037 crore. Deposits accounted for 17% of consolidated borrowings, supporting a more diversified and stable funding mix.
Credit cost trends:
Loan losses and provisions (pre-accelerated ECL) increased 9% YoY to Rs 2,219 crore, compared with Rs 2,043 crore in Q3 FY25, indicating some pressure on asset quality.
Bajaj Finance shares ended Tuesday’s session sharply higher, gaining 6.68% to close at Rs 964 on the NSE.
Overall, while profitability saw pressure due to higher provisions, strong NII growth, rising AUM, an expanding customer base, and stable margins are likely to keep Bajaj Finance stock in focus for investors and traders in the near term.
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