Bajaj Finance's Q2 results: Net profit surges 22% to ₹4,875cr
What's the story
Bajaj Finance has announced a 22% increase in its consolidated net profit for the second quarter of FY26. The company's profit after tax (PAT) stood at ₹4,875 crore, up from ₹4,000 crore in the same period last year. However, the figure fell short of market expectations, which had pegged it at ₹4,969 crore.
Financial performance
NII and total income for the quarter
Bajaj Finance's net interest income (NII) also witnessed a major jump in Q2 FY26. The figure rose by 22% to ₹10,785 crore from ₹8,838 crore in the same quarter last year. The company reported a net total income of ₹13,170 crore for the quarter, which is a 20% increase over the previous year's ₹10,946 crore.
Growth indicators
Pre-provisioning operating profit and new loans booked
The pre-provisioning operating profit of Bajaj Finance surged by 21% in Q2 FY26 to ₹8,874 crore from ₹7,307 crore in the same period last year. The number of new loans booked during this quarter also grew significantly to 1.22 crore as against 97 lakh in Q2 FY25, marking a growth of 26%.
Business expansion
Customer franchise and loan losses
As of September 30, 2025, Bajaj Finance's customer franchise stood at 11.06 crore, up from 9.209 crore on the same date last year, a growth of 20%. However, loan losses and provisions also increased by 19% in Q2 FY26 to ₹2,269 crore from ₹1,909 crore in the same period last year. The annualized loan losses and provisions to average assets under finance for Q2 FY26 was recorded at 2.05%.
Asset quality
Gross and net NPA
As of September 30, Bajaj Finance's gross non-performing assets (NPA) stood at 1.24% while the net NPA was at 0.60%. These figures are higher than last year's numbers of 1.06% and 0.46%, respectively, on the same date. The company had a provisioning coverage ratio on stage three assets of 52%.