Bajaj Finance Limited (BAJFINANCE)
🎯 Key Takeaways
- Bajaj Finance is in a growth phase driven by asset expansion and strategic diversification into housing finance partnerships, supported by strong capital adequacy and consistent shareholder returns. Management is executing a clear capital-light growth model with improving asset quality and sustained profitability, positioning it as a high-quality financial services franchise with scalable margins.
- Revenue grew 5.1% QoQ to ₹21,214 in Q3FY26.
- ⚠️ Concentration in consumer finance segments exposes the company to economic cyclicality and credit risk during downturns.
📖 The Story
Bajaj Finance is in a growth phase driven by asset expansion and strategic diversification into housing finance partnerships, supported by strong capital adequacy and consistent shareholder returns. Management is executing a clear capital-light growth model with improving asset quality and sustained profitability, positioning it as a high-quality financial services franchise with scalable margins.
📰 What's Happening
The company held its 39th AGM on 30 July 2026, where Chairman Sanjiv Bajaj confirmed financial results with no adverse auditor remarks, and Rajiv Bajaj announced his retirement from the board due to increased responsibilities at Bajaj Auto. Shareholders approved the adoption of FY2026 financial statements, a Rs 6 per share dividend, reappointment of Pramit Jhaveri as Independent Director, and material related party transactions with Bajaj Housing Finance. Concurrently, the board approved unaudited Q1 FY27 results showing consolidated profit after tax rising 29% to ₹5,346 crore, AUM growing 23% to ₹400,388 crore, and gross NPA improving to 1.20%. Additionally, on 23 July 2026, Bajaj Finance allotted 1,14,076 secured NCDs worth ₹1,152.64 crore via private placement at 7.93% coupon, maturing in June 2029, backed by a first pari-passu charge on book debts and loan receivables.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Q4FY24 | Q1FY25 | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 14,926 | 16,099 | 17,090 | 18,035 | 18,457 | 19,524 | 20,179 | 21,214 |
| Operating Profit | 10,512 | 11,147 | 11,757 | 12,367 | 12,443 | 13,536 | 13,874 | 13,012 |
| OPM % | 70.4% | 69.2% | 68.8% | 68.4% | 67.3% | 69.3% | 68.8% | 62.6% |
| Net Profit | 3,825 | 3,912 | 4,014 | 4,308 | 4,546 | 4,765 | 4,948 | 4,066 |
| EPS | ₹61.91 | ₹63.28 | ₹64.66 | ₹68.63 | ₹72.35 | ₹7.57 | ₹7.85 | ₹6.40 |
Quarterly financial trends show consistent revenue and profit growth with OPM stability above 67%, indicating resilient operating leverage. Profit after tax grew 29% YoY in Q1 FY27, outpacing revenue growth, while asset quality improved with gross NPA declining to 1.20% and net NPA at 0.49%. This performance aligns with management's focus on expanding consumer finance and housing finance partnerships, supported by strong credit ratings and 100% security cover for debentures. The business model demonstrates scalable profitability with improving asset quality metrics across recent quarters.
🔮 Management Outlook & What's Next
No forward guidance was provided in the latest filings, including the Q1 FY27 results announcement and AGM. Management has not issued explicit forward-looking statements on growth expectations, margin trajectory, or capital allocation plans beyond disclosed strategic focus areas. Investor updates have centered on execution updates, such as dividend declarations, board changes, and capital market actions like NCD issuance, rather than projections for future performance.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | 2024-2025 | 2024-2025 | 2025-2026 | 2025-2026 | 2025-2026 |
|---|---|---|---|---|---|
| Equity Capital | 124 | 124 | 621 | 622 | 622 |
| Reserves | — | 96,569 | — | 1.03 L Cr | — |
| Borrowings | — | 1.32 L Cr | — | 1.37 L Cr | — |
| Total Liabilities | — | 3.67 L Cr | — | 4.04 L Cr | — |
| Fixed Assets | — | 2,689 | — | 2,665 | — |
| Investments | — | — | — | — | — |
| Total Assets | — | 4.66 L Cr | — | 5.10 L Cr | — |
The balance sheet reflects a deliberate capital structure strategy with borrowings at ₹1.37 L Cr and equity of ₹622 Cr, supporting asset growth of ₹5.10 L Cr. The issuance of ₹1,152.64 Cr in secured NCDs indicates active use of debt markets to fund expansion without diluting equity, while maintaining a debt-to-equity ratio of 1.37. This suggests management is prioritizing balance sheet efficiency and leveraging debt for capital-intensive growth, particularly in asset acquisition and loan book expansion, without overleveraging the company.
💰 Cash Flow Statement (₹ Cr)
| Item | 2020-2021 |
|---|---|
| Operating | -881 |
| Investing | -429 |
| Financing | +1,826 |
| Net Cash Flow | — |
👥 Shareholding Pattern
| Category | Q1FY25 | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q1FY26 | Q2FY26 | Q3FY26 |
|---|---|---|---|---|---|---|---|---|
| Promoters | 54.7% | 54.7% | 54.7% | 54.7% | 54.7% | 54.7% | 54.7% | 54.7% |
| FII | 21.1% | 20.8% | 20.8% | 21.5% | 21.6% | 21.7% | 22.0% | 21.5% |
| DII | 14.3% | 15.1% | 15.2% | 14.9% | 14.6% | 14.6% | 14.5% | 14.9% |
| Public | 9.8% | 9.3% | 9.3% | 8.8% | 9.0% | 8.9% | 8.8% | 8.8% |
| # Shareholders | 8,05,241 | 7,81,913 | 7,91,392 | 7,05,610 | 8,12,118 | 8,99,777 | 9,41,999 | 9,61,994 |
Promoter holding has remained stable around 54.7% over recent quarters, indicating confidence in long-term strategy. FII allocation has slightly declined from 21.97% to 21.59%, while DII increased from 14.47% to 14.6%, suggesting institutional investors are gradually accumulating. The number of shareholders has grown from 8.12 lakh to 9.62 lakh, reflecting retail investor engagement. No pledging or significant stake sales were disclosed, and the consistent dividend payout supports income-seeking investors.
⚖️ Peer Comparison — Finance
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| Bajaj Finance Limited | 5.67 L Cr | 30.9 | 22.4% | 18.6% | 1.37 |
| Bajaj Finserv Limited | 2.77 L Cr | 14.4 | — | 13.4% | — |
| Shriram Finance Limited | 2.21 L Cr | 23.3 | — | — | — |
| Jio Financial Services Limited | 1.54 L Cr | 92.1 | — | — | — |
| Power Finance Corporation Limited | 1.47 L Cr | 5.0 | — | — | — |
| Muthoot Finance Limited | 1.33 L Cr | 26.6 | — | — | — |
| Cholamandalam Investment and Finance Company Limited | 1.32 L Cr | 31.9 | — | — | — |
| Tata Capital Limited | 1.31 L Cr | — | — | — | — |
| Indian Railway Finance Corporation Limited | 1.29 L Cr | 18.4 | — | — | — |
| Bajaj Holdings & Investment Limited | 1.15 L Cr | 15.3 | — | — | — |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Concentration in consumer finance segments exposes the company to economic cyclicality and credit risk during downturns. 2. Regulatory scrutiny on lending practices and interest rate caps in consumer finance could pressure margins. 3. Dependence on related party transactions with Bajaj Group entities, including Bajaj Housing Finance, may face scrutiny if not managed transparently. 4. High dividend payout could limit reinvestment capacity if growth opportunities accelerate.
📋 Recent Filings
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Announcement 30 July 2026Bajaj Finance announced that its conference call for the quarter ended 30 June 2026 was held on 30 July 2026, with the presentation shared with exchan...
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🟡 Board Meeting 30 July 2026Bajaj Finance held its 39th Annual General Meeting on 30 July 2026 via video conference, with 1612 shareholders attending. Chairman Sanjiv Bajaj chair...
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Announcement 30 July 2026Bajaj Finance reported strong Q1 FY27 results with AUM growing 24% YoY to ₹546,944 crore, PAT rising 28% to ₹6,081 crore, and Net NPA improving to 0.3...
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🟡 Board Meeting 30 July 2026Bajaj Finance's board approved unaudited standalone and consolidated financial results for Q1 FY27 (ended 30 June 2026) on 30 July 2026, alongside reg...
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🔴 Corporate Action 23 July 2026Bajaj Finance announced on 23 July 2026 the allotment of 1,14,076 secured redeemable non-convertible debentures (NCDs) at a face value of Rs. 1 lakh e...
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🔴 annual report 7 July 2026Bajaj Finance Limited submitted its Business Responsibility and Sustainability Report (BRSR) for FY2026, covering consolidated disclosures on governan...
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🔴 annual report 7 July 2026The filing announces the 39th Annual General Meeting (AGM) of Bajaj Finance Limited scheduled for 30 July 2026, convened via video conferencing. It ou...
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🔴 annual report 7 July 2026Bajaj Finance Limited (BAJFINANCE) announced its 39th Annual General Meeting (AGM) scheduled for 30 July 2026 via video conferencing. The filing detai...
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🔴 Corporate Action 6 July 2026Bajaj Finance announced the allotment of 530,500 secured redeemable non-convertible debentures (NCDs) on a private placement basis, aggregating to Rs....
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🔴 Insider Trading 2 July 2026Bajaj Finance reported a 5.10 million increase in customer franchise to 124.43 million and 20% growth in new loans to 16.13 million for Q1 FY27, while...
🧠 Analyst's Read
Bajaj Finance continues to demonstrate strong execution with improving asset quality and profitable growth, but the lack of forward guidance introduces uncertainty. Investors should monitor upcoming quarterly trends, especially margin stability and expansion into housing finance partnerships, as key indicators of sustained performance.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-08-02.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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