The company delivered strong AUM expansion of 22% and introduced its LRS 2026-30 strategic framework. Investors focus on balance sheet resilience following a ₹1,406 crore accelerated ECL provision and a one-time charge related to New Labour Codes.
Bajaj Finance Ltd (NSE: BAJFINANCE) reported its basic earnings per share at ₹7.37 for the standalone entity for the quarter ended December 31, 2025. Consolidated profit after tax, before accelerated provisions and exceptional items, increased 23% year-over-year to ₹5,317 crore. The company added 4.76 million new customers to its franchise during the third quarter. Total assets under management (AUM) reached ₹484,477 crore, representing 22% growth compared to the previous year.
Company Profile and Strategic Analysis
Bajaj Finance Ltd is a diversified non-bank financial institution with a deposit-taking license. It is part of the Bajaj Group and focuses on mass and affluent segments while leveraging cross-sell opportunities to drive lifetime value. The company is currently executing its “FINAI” transformation, integrating artificial intelligence across customer journeys and business processes to create a future-ready financial services model. The newly unveiled LRS 2026-30 framework aims to transition the organization from a product-centric to a customer-centric model.
Latest Quarterly Results and Highlights
• Customer Franchise: The total franchise stood at 115.40 million as of December 31, 2025.
• Loan Velocity: New loans booked during Q3 FY26 reached 13.90 million, a 15% increase over Q3 FY25.
• Net Total Income: Consolidated income grew by 19% to ₹13,875 crore.
• Operating Efficiency: The OpEx to net total income ratio improved to 32.8% from 33.1% in the corresponding quarter of the previous year.
• Asset Quality: Gross NPA and Net NPA stood at 1.21% and 0.47% respectively. The provisioning coverage ratio on stage 3 assets was 61%.
Performance by Business Vertical
The company maintains leadership in consumer electronics, digital products, and lifestyle lending. The rural B2C AUM recorded 23% year-over-year growth in Q3 FY26. The MSME business remains focused on affluent professionals and used car financing. Within the payments vertical, the EMI Card franchise reached 87.02 million cards in force.
Segment Updates
• Bajaj Housing Finance Ltd (BHFL): AUM grew by 23% to ₹133,412 crore. Home loans grew 18%, while lease rental discounting increased by 39%.
• Bajaj Financial Securities Ltd (BFSL): Assets under finance grew 63% to ₹8,790 crore. The retail and HNI customer franchise expanded to 1.25 million.
Regulatory Milestones and Management Commentary
The Board of Directors approved the unaudited financial results on February 3, 2026. To enhance balance sheet resilience amidst a volatile global economic environment, the company implemented a minimum Loss Given Default (LGD) floor across all businesses, resulting in a ₹1,406 crore accelerated ECL provision. An exceptional charge of ₹265 crore was recorded for increased gratuity liabilities due to the New Labour Codes released on November 21, 2025. Standalone results included an exceptional gain of ₹1,416 crore from the sale of BHFL shares to meet public shareholding requirements.
Guidance and Future Outlook
Management has set a long-term corridor for AUM growth between 25% and 27% and profit growth between 23% and 24%. The company expects to add 17-18 million new customers in FY26. The long-term sustainable return on assets (ROA) target is 4.3%-4.7%, with a return on equity (ROE) target of 19%-21%. Broader industry trends show a significant shift toward digital-native consumers and AI-enabled commerce, which the company intends to lead through its Agentic AI and multi-modal consumer AI platforms.
Market Capitalization and Capital Strength
As of December 31, 2025, the company’s net worth for the standalone entity stood at ₹98,100.31 crore. Capital adequacy remained robust at 21.45%, with Tier-I capital at 20.60%. The company holds an AAA/Stable credit rating for its long-term debt program.