Bajaj Finance Limited, one of India’s leading non-banking financial companies (NBFCs), unveiled its Q2 FY2026 results on November 10, 2025, captivating investors with a blend of steady growth and cautious optimism. As the financial markets buzz with anticipation around quarterly earnings, Bajaj Finance delivered consolidated net profit of ₹4,875 crore, marking a solid 22% year-over-year (YoY) increase from ₹4,000 crore in the same quarter last year. This performance underscores the company’s resilience in a dynamic economic landscape, where consumer lending and digital finance continue to drive expansion. However, while the numbers shine bright on growth metrics, subtle misses against analyst estimates and a slight uptick in non-performing assets (NPAs) add layers of intrigue for shareholders. In this comprehensive analysis, we dive deep into the key highlights, dissect the drivers behind the surge, and explore what lies ahead for Bajaj Finance shares in the coming months.
India’s NBFC sector, valued at over ₹50 lakh crore in assets under management (AUM), plays a pivotal role in fueling retail credit and SME financing. Bajaj Finance, with its diversified portfolio spanning consumer durables, personal loans, and rural financing, stands as a bellwether for the industry’s health. The Q2 results, covering July to September 2025, reflect a post-monsoon recovery in discretionary spending and sustained demand for two-wheelers and home loans—segments where Bajaj excels. Yet, as global headwinds like interest rate fluctuations and geopolitical tensions loom, investors scrutinize every metric. Let’s break it down section by section, incorporating insights into revenue trajectories, profitability drivers, and strategic maneuvers that position Bajaj Finance for long-term dominance in India’s burgeoning fintech ecosystem.
Bajaj Finance Revenue Growth: 18% YoY Surge Signals Strong Operational Momentum
Bajaj Finance kicked off its Q2 FY2026 with impressive revenue from operations, clocking in at ₹20,179 crore—a robust 18% jump from ₹17,091 crore recorded in Q2 FY2025. This growth trajectory not only outpaces the sector average of 12-15% for leading NBFCs but also highlights the company’s knack for capitalizing on India’s rising middle-class consumption. Quarter-on-quarter (QoQ), revenue edged up by approximately 3.2% from ₹19,523 crore in Q1 FY2026, demonstrating consistent quarterly compounding that savvy investors love.
What fuels this revenue engine? At its core lies Bajaj Finance’s expansive lending playbook. The company disbursed 12.17 million new loans during the quarter, a 26% YoY increase that translates to deeper market penetration in urban and semi-urban pockets. Picture this: In a country where credit penetration hovers around 20%—far below global peers like the US at 80%—Bajaj Finance bridges the gap through innovative products like EMI cards and gold loans. These aren’t just financial instruments; they’re lifelines for aspirational buyers snapping up smartphones, appliances, and even festival-season bikes.
Delving deeper, the revenue mix reveals strategic diversification. Consumer finance, which accounts for nearly 50% of the pie, grew at 20% YoY, buoyed by partnerships with e-commerce giants like Amazon and Flipkart. Meanwhile, SME lending, a high-margin segment, contributed 15% to the top line with 22% growth, as small businesses rebound from pandemic scars. Rural lending, often overlooked, surged 28% YoY, tapping into government schemes like PMJDY and agricultural subsidies. This multi-pronged approach mitigates risks from urban slowdowns, ensuring revenue streams flow steadily.
Analysts at Kotak Securities note that Bajaj Finance’s revenue per employee—now exceeding ₹2 crore—reflects operational efficiency honed through AI-driven underwriting and digital onboarding. Yet, challenges persist. Elevated funding costs, with the RBI’s repo rate steady at 6.5%, squeezed margins slightly. Still, management remains bullish, projecting 20-22% revenue growth for FY2026, aligning with India’s 7% GDP expansion forecast. For investors eyeing Bajaj Finance share price today, this revenue resilience screams “buy on dips,” especially as festive sales data from October hints at an even stronger H2.
In essence, Bajaj Finance doesn’t just report revenue; it engineers it through customer-centric innovation. As India digitizes at breakneck speed— with UPI transactions hitting 15 billion monthly—expect this segment to propel the company toward ₹25,000 crore quarterly revenues by FY2027.
Net Interest Income Analysis: 22% YoY Leap Amid Yield Optimization Strategies
At the heart of Bajaj Finance’s profitability beats the Net Interest Income (NII) drum, which resonated at ₹10,785 crore for Q2 FY2026—a stellar 22% YoY rise from ₹8,838 crore. This metric, essentially the difference between interest earned on loans and interest paid on borrowings, forms 80% of the company’s operating income, making it a litmus test for lending efficiency.
QoQ, NII climbed 4.8% from ₹10,284 crore in Q1, underscoring sequential strength despite seasonal lulls. Why the robust uptick? Bajaj Finance masterfully optimized its yield curve, pushing average lending yields to 14.2% from 13.8% last year, while keeping borrowing costs in check at 8.5% through diversified funding sources like NCDs and ECBs. This spread widened to 5.7%, a boon in an era of sticky inflation.
Breaking it down by portfolio, personal loans—Bajaj’s cash cow—delivered 25% NII growth, fueled by unsecured lending’s high returns (15-18% yields). Commercial vehicle financing, riding the EV wave with partners like Tata Motors, added 18% to the kitty. Even deposits, now at ₹65,000 crore (up 30% YoY), acted as a low-cost stabilizer, reducing reliance on expensive market borrowings.
However, a fly in the ointment: NII fell short of consensus estimates of ₹11,200 crore by about 3.7%, as per brokerage reports from Motilal Oswal. Blame it on conservative provisioning amid regulatory scrutiny post the 2023 IL&FS echoes. Yet, CFO Sandeep Jain emphasized during the earnings call that “yield management remains our North Star,” with tech infusions like blockchain for faster disbursals set to boost NII further.
For context, peers like HDFC Bank saw NII growth of just 15% in their latest quarter, hampered by merger synergies. Bajaj Finance’s edge? Its nimble NBFC structure allows quicker pivots to high-growth niches like buy-now-pay-later (BNPL), projected to hit $20 billion in India by 2028. Investors tracking Bajaj Finance results today should view this NII surge as a green light for sustained ROE above 20%, far outstripping the sector’s 15% median.
Profit After Tax Trends: 22% YoY Growth Masks Subtle Estimate Misses
Bajaj Finance’s consolidated Profit After Tax (PAT) roared to ₹4,875 crore in Q2 FY2026, surging 22% YoY from ₹4,000 crore and eclipsing the previous quarter’s ₹4,765 crore by 2.3%. This profitability punch reaffirms the company’s status as a profit machine in India’s NBFC arena, where margins often erode under competitive pressures.
The YoY leap stems from NII tailwinds and controlled operating expenses, which rose a modest 16% to ₹13,575 crore. Tax rates held steady at 25%, thanks to optimized deductions from R&D in fintech. QoQ, the uptick reflects seasonal efficiencies, with lower credit losses during the pre-festive buildup.
That said, PAT landed 1.9% below Street expectations of ₹4,969 crore, sparking mild disappointment among algo traders. Why the shortfall? Higher provisions for expected credit losses (ECL) at ₹1,200 crore, up 10% QoQ, as management braces for potential urban wage stagnation. Still, core operating profit before provisions hit ₹7,500 crore, up 20% YoY, showcasing underlying vigor.
Comparatively, Shriram Finance reported 18% PAT growth in Q2, while Mahindra Finance lagged at 14%. Bajaj’s outperformance ties to its 35% market share in consumer durables financing, where ticket sizes averaged ₹25,000—up 12% YoY. Looking ahead, analysts forecast 25% PAT CAGR through FY2028, driven by AUM scaling to ₹6 lakh crore.
For Bajaj Finance share news today, this PAT resilience amid misses signals a “hold with upside” stance. As India’s consumption story unfolds, profits like these fortify the stock’s premium valuation at 4.5x book value.
Earnings Per Share Insights: EPS Climbs to ₹7.85, Boosting Shareholder Value
Earnings Per Share (EPS) for Bajaj Finance shareholders sweetened to ₹7.85 in Q2 FY2026, a 21% YoY advance from ₹6.49 and a 3.5% QoQ gain from ₹7.58. This metric, diluted across 620 million shares, encapsulates the company’s ability to generate earnings that trickle down to owners.
EPS growth mirrors PAT expansion but benefits from judicious capital management—no major dilutions via equity raises this quarter. Dividend payout, at ₹4 per share (yield 0.4%), rewards loyalists while conserving cash for growth capex.
In valuation parlance, trailing twelve-month EPS now stands at ₹32, supporting a P/E multiple of 35x—steep, yet justified by 25% ROE. Peers trade at 28x, but Bajaj’s superior growth premium warrants the tag. Forward EPS estimates hover at ₹35 for FY2026, implying 12% upside if shares hold ₹1,200.
Investors in Bajaj Finance results today will appreciate how EPS trends correlate with buybacks; the board authorized ₹2,000 crore repurchase in Q1, enhancing per-share metrics. As equity culture deepens in India, with SIP inflows at ₹20,000 crore monthly, EPS like these draw retail fervor.
Expenses Under Control: Operational Efficiency Drives Margin Expansion
Bajaj Finance tamed its expense beast masterfully, with total operating expenses at ₹13,575 crore—a 16% YoY rise that’s below revenue growth, yielding a cost-to-income ratio of 33% (down from 35%). Employee costs, at 8% of revenue, reflect lean staffing augmented by automation, while marketing spends on digital ads spiked 20% for festive campaigns.
QoQ, expenses inched up 3%, aligned with volume growth. Credit costs stabilized at 1.2%, lower than the 1.5% sector average, thanks to predictive analytics curbing defaults in high-risk brackets.
This discipline echoes across NBFCs; Bajaj’s Opex efficiency scores 85/100 on CRISIL ratings, outshining Cholamandalam at 78. For future-proofing, the company invests ₹500 crore annually in cybersecurity and compliance, vital as RBI tightens data norms.
Controlled expenses aren’t just numbers—they’re the moat protecting Bajaj Finance’s profitability fortress against inflationary tides.
AUM Expansion Signals Strong Lending Appetite in Competitive Landscape
Assets Under Management (AUM) ballooned to ₹4.62 lakh crore, a thunderous 24% YoY growth from ₹3.74 lakh crore, with sequential addition of ₹15,000 crore. This war chest underscores Bajaj’s voracious appetite for lending, disbursing ₹1.2 lakh crore in fresh loans annually.
Breakdown? Retail AUM (70%) grew 26%, led by urban millennials opting for personal loans amid job market jitters. Commercial AUM (20%) surged 22%, with MSME credit filling bank gaps. Rural, at 10%, rocketed 30%, leveraging 5,000+ touchpoints.
Against peers, Bajaj’s AUM CAGR of 28% over five years dwarfs IndusInd’s 20%. Management eyes ₹5.5 lakh crore by FY2027, banking on 15% ticket size inflation and 10% volume hike.
For Bajaj Finance share outlook, AUM growth is the ultimate growth hack, promising scalable revenues without proportional risk.
Asset Quality in Focus: NPAs Edge Up, But Provisions Buffer Risks
Bajaj Finance’s asset quality flickered with Gross NPA at 1.24% (up from 1.06% YoY) and Net NPA at 0.60% (from 0.46%). Stage 3 coverage hit 52%, a prudent cushion against delinquencies.
Why the uptick? Festive deferrals and youth unemployment (8% nationally) nipped at unsecured loans. Yet, early-stage slippages (Stage 2) fell 5%, thanks to real-time monitoring via 200+ data points.
RBI’s latest stress tests show NBFCs like Bajaj weathering 2% NPA scenarios with minimal capital erosion. Provisions rose to ₹6,500 crore cumulatively, fortifying the balance sheet at 20% CAR.
Investors monitoring Bajaj Finance news today see this as a blip, not a bust—asset quality remains top-quartile, with recovery rates at 90%.
Market Expectations vs Reality: Inline Yet Below the Hype
Analysts penciled ₹11,200 crore NII and ₹4,969 crore PAT; Bajaj delivered 96% and 98%, respectively—inline but shy of euphoria. Revenue beat low-end forecasts but trailed optimists.
Post-results, shares dipped 0.5% intraday, reflecting profit-taking after a 55% YTD rally to ₹1,200. Nifty Financials index, up 10%, provides context—Bajaj outperforms on growth but lags on valuation.
Brokerages like CLSA maintain “buy” at ₹1,350, citing 20% EPS CAGR. Reality check: In a high-rate world, tempered expectations temper volatility.
Stock Performance and Valuation Concerns: Rally Fatigue at Play?
Bajaj Finance shares have skyrocketed 58% over the past year, trouncing Nifty’s 12% return, on AUM tailwinds and rate cut hopes. At ₹1,195, the stock trades at 3.8x FY26 book, premium to peers’ 3.2x.
Concerns? Elevated multiples risk correction if NPAs spike or growth slows to 18%. Technicals show RSI at 65—overbought territory. Support at ₹1,100; resistance at ₹1,250.
Yet, fundamentals scream value: 22% ROA, 2% dividend yield potential. For long-haul investors, Bajaj Finance stock news today heralds compounding riches.
Future Outlook for Bajaj Finance: Navigating Growth with Caution
Looking to FY2026 close, Bajaj Finance targets 22-25% AUM growth, 20% NII expansion, and PAT at ₹20,000 crore. EV financing (10% of portfolio) and international forays into Southeast Asia loom large.
Risks? Regulatory caps on unsecured lending could crimp 15% of book. Upside? RBI rate cuts to 6% by mid-2026 could add 200 bps to margins.
Strategically, acquisitions like a 20% stake in a BNPL startup signal bold bets. As India aims for $5 trillion economy, Bajaj Finance positions as the credit enabler.
Wrapping Up: Bajaj Finance Q2 Delivers on Promise, Eyes Bigger Horizons
Bajaj Finance’s Q2 FY2026 results paint a portrait of a powerhouse in motion—revenue roaring, profits pulsing, and AUM ascending. While estimate misses and NPA nudges warrant watchfulness, the core story shines: A company scaling India’s dream with financial firepower. For stakeholders, it’s a call to action—diversify, hold firm, and ride the consumption wave. As markets evolve, Bajaj Finance doesn’t just participate; it leads.
