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Bajaj Finance Profit Misses Estimates Amid Higher Provisions
3 Feb
Summary
- Profit declined 5.6% year-on-year to ₹4,066 crore in Q3 FY26.
- Net interest income rose 20.6% year-on-year to ₹11,318 crore.
- Customer base expanded 19% YoY to 11.54 crore in the quarter.
Bajaj Finance announced its Q3 FY26 financial results, revealing a net profit of ₹4,066 crore, a 5.6% decrease from the previous year and below market expectations. This decline was largely attributed to an accelerated expected credit loss provision of ₹1,406 crore, stemming from a new minimum loss-given-default floor across its businesses. An additional one-time exceptional charge of ₹265 crore was booked for higher gratuity liabilities.
Despite the profit dip, core lending metrics showed robust growth. Net interest income increased by 20.6% year-on-year to ₹11,318 crore, supported by sustained expansion in the loan book. The company's customer franchise grew by 19% to 11.54 crore, with 47.6 lakh new customers acquired during the quarter. Assets under management reached ₹4.84 lakh crore, reflecting a 22% year-on-year growth prior to the ECL adjustment.
Asset quality remained stable, with gross non-performing assets at 1.21% and net NPAs at 0.47%. The capital adequacy ratio was reported at a healthy 21.45%. Shares of Bajaj Finance had seen a notable increase of 6.68% in pre-earnings trading.
