{"id":168175,"date":"2025-05-01T06:35:24","date_gmt":"2025-05-01T10:35:24","guid":{"rendered":"https:\/\/44.250.171.167\/?p=168175"},"modified":"2025-05-01T06:36:41","modified_gmt":"2025-05-01T10:36:41","slug":"bajfinance-q4-call-highlights-growth-projections-credit-quality-focus-and-nim-stability","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/bajfinance-q4-call-highlights-growth-projections-credit-quality-focus-and-nim-stability\/","title":{"rendered":"BAJFINANCE Q4 Call Highlights: Growth Projections, Credit Quality Focus and NIM Stability!"},"content":{"rendered":"<p>Bajaj Finance Ltd, a prominent Indian non-banking financial company (NBFC) offering a wide range of financial services, including loans, deposits, and other financial products, in its Q4 earnings call discuss its FY26 outlook, projecting slightly moderated 24-25% growth to prioritize credit quality improvement despite its small 2.14% market share. Management mentioned that their ECL model refresh increased provisions due to recent elevated credit costs, though early loan vintages show promising improvements from tightened lending standards and reduced customer leverage. Management expects credit costs to improve significantly by Q3-Q4, potentially falling below pre-COVID levels. Company maintained stable NIM guidance with possible 10-15 basis point improvement from lower funding costs. Executives explain that ROA\/ROE metrics are temporarily compressed by surplus capital from their QIP and DHFL listing, which could add 70-90 basis points to ROA when normalized, while noting their portfolio composition has remained consistent with mortgages at 31% over five years.<\/p>\n<p>Bajaj Finance demonstrated strong financial growth in Q4 FY25 despite regulatory challenges, with consolidated net profit figures increasing 19% year-on-year. The company&#8217;s Assets Under Management (AUM) grew by 26% to 4.16 lakh crore, while Net Interest Income increased by 22%. Despite RBI restrictions on its &#8216;eCOM&#8217; and &#8216;Insta EMI Card&#8217; products that reduced new loans by approximately 0.8 million, the company booked between 10.70 million new loans during the quarter. Asset quality remained strong with Gross NPA ratios between 0.85-0.96%.<\/p>\n<p>Continue Reading: Unearth the Vital Insights from Bajaj Finance Ltd&#8217;s Earnings Call!<\/p>\n<p><strong>Financial\/Operational Metrics:<\/strong><\/p>\n<ul>\n<li><strong>Revenue:<\/strong> INR18,469 crores, up 24% YoY.<\/li>\n<li><strong>Net Income<\/strong>: INR4,545 crores, up 19% YoY.<\/li>\n<li><strong>EPS<\/strong>: INR72.35, up 17% YoY.<\/li>\n<li><strong>Assets Under Management:<\/strong> INR4.16 lakh crore, up 26%.<\/li>\n<\/ul>\n<p><strong>FY26 Outlook:<\/strong><\/p>\n<ul>\n<li><strong>Fee Income Growth:<\/strong> 13\u201315% (Post rationalization &amp; card business exit).<\/li>\n<li><strong>ROA:<\/strong> 4.4\u20134.6%.<\/li>\n<li><strong>ROE:<\/strong> 19\u201320%.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><strong>\u00a0<\/strong><strong>\u00a0<\/strong><\/p>\n<p><strong>Analyst Crossfire:<\/strong><\/p>\n<ul>\n<li><strong> AUM Growth Drivers &amp; Market Share, NIM Stability &amp; Rate Environment (Chintan Joshi &#8211; Autonomous): <\/strong>Growth in FY26 is expected across all business segments, particularly in secured lending and gold loans, supported by the company&#8217;s small market share of 2.14% in total credit and 7\u20137.5% in count share. Despite some NIM compression due to moderation in unsecured businesses, benefits from reduced cost of funds (10\u201315 bps) are expected to stabilize NIMs in FY26; additional upside possible if current rate trends persist<strong> (Anup Saha \u2013 Deputy MD).<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>ECL Model Provisions &amp; Stage 1 Impact, Rural B2C Portfolio Outlook (Abhishek \u2013 HSBC): <\/strong>Higher provisions in Stage 1 result from recent elevated credit costs being fed into the ECL model, which assumes past performance continues into the future. Rural B2C is recovering, with improved early vintage metrics and no additional provisioning required in the recent ECL refresh; management is confident about 20\u201325% growth in FY26<strong> (Sandeep Jain \u2013 COO).<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Growth Guidance &amp; Credit Focus, Credit Cost Expectations &amp; Risk Actions (Krishna Shah \u2013 Citi): <\/strong>While the company targets 24\u201325% AUM growth, focus is on restoring credit cost corridor and profitability via AI-driven operational efficiencies before accelerating growth. Credit costs are expected to normalize by Q3\u2013Q4 FY26, with ongoing de-risking in products like 3PL and two-wheeler finance showing early results<strong> (Anup Saha \u2013 <\/strong><strong>Deputy MD, Rajeev Jain \u2013 MD).<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Credit Cost Trends, NIM Outlook &amp; Cost of Funds (Vishal Gupta &#8211; IIFL Securities): <\/strong>FY24 credit cost declined to 1.97% in Q4 from 2.07% YTD, excluding ESAL provision, marking the first meaningful QoQ drop in a few quarters. Net Interest Margins (NIMs) expected to remain stable, supported by 10\u201315 bps of potential cost of fund improvement, with current market yields already showing a downward trend <strong>(Rajeev Jain \u2013 MD, Sandeep Jain &#8211; COO).<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>ROA\/ROE Guidance &amp; Excess Capital, Capital Deployment Plans (Analyst): <\/strong>The ROA corridor (4.3\u20134.7%) and ROE outlook (19\u201321%) reflect impacts of surplus capital from past QIP and DHFL listing; adjusted ROE would be ~60\u201390 bps higher without the capital overhang. Excess capital is being considered for organic business building, though inorganic options are explored. Dividend distributions remain a return enhancement tool<strong> (Sandeep Jain &#8211; COO &amp; Rajeev Jain \u2013 MD)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Credit Cost vs. Mix Stability &amp; Captive Auto Finance Wind-Down (Finesh Singh &#8211; MK Global): <\/strong>Credit cost guidance (1.85\u20131.95%) reflects elevated costs in certain unsecured segments; mortgage mix has not shifted materially over five years, remaining at ~31%. The high-credit-cost captive 2W\/3W loan book is reducing from \u20b917,000 Cr to \u20b94,500 Cr by FY26, which will structurally lower credit costs<strong> (Rajeev Jain \u2013 MD, Anup Saha &#8211; Deputy MD)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bajaj Finance Ltd, a prominent Indian non-banking financial company (NBFC) offering a wide range of financial services, including loans, deposits, and other financial products, in its Q4 earnings call discuss its FY26 outlook, projecting slightly moderated 24-25% growth to prioritize credit quality improvement despite its small 2.14% market share. Management mentioned that their ECL model [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":162998,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,1],"tags":[10169,8265,9708],"class_list":["post-168175","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-finance-stocks","tag-earnings","tag-finance","tag-nbfc"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":166718,"url":"https:\/\/alphastreet.com\/india\/bajfinance-q3-2024-2025-call-highlights-stable-nims-lower-credit-costs-and-expansion-plans\/","url_meta":{"origin":168175,"position":0},"title":"BAJFINANCE Q3 2024-2025 Call Highlights: Stable NIMs, Lower Credit Costs, and Expansion Plans!","author":"Praveen","date":"February 6, 2025","format":false,"excerpt":"Bajaj Finance Ltd., India's most diversified non-banking finance company, in its Q3 earnings call projected a 25% balance sheet growth and 22-23% profit growth for the upcoming fiscal year, contingent on stable external conditions, while aiming to keep credit costs below 2%. The management discussed strategic adjustments, including reducing exposure\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":166615,"url":"https:\/\/alphastreet.com\/india\/shriramfin-q3-2024-2025-call-highlights-margin-recovery-nim-rebound-npas-decline\/","url_meta":{"origin":168175,"position":1},"title":"SHRIRAMFIN Q3 2024-2025 Call Highlights: Margin Recovery, NIM Rebound &#038; NPAs Decline!","author":"Praveen","date":"January 29, 2025","format":false,"excerpt":"Shriram Finance Ltd., India\u2019s one of the biggest retail NBFC, in its Q3 earnings call explained that NIM compression was due to excess liquidity and asset mix changes, while maintaining confidence in keeping credit costs below 2% despite some increase in Stage 3 assets in Commercial Vehicle (CV) and MSME\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":168144,"url":"https:\/\/alphastreet.com\/india\/shriramfin-q4-call-highlights-disbursement-dip-aum-surge-msme-momentum\/","url_meta":{"origin":168175,"position":2},"title":"SHRIRAMFIN Q4 Call Highlights: Disbursement Dip, AUM Surge &#038; MSME Momentum!","author":"Praveen","date":"April 29, 2025","format":false,"excerpt":"Shriram Finance Ltd, India\u2019s one of the biggest retail NBFC offering credit solutions for commercial vehicles, two-wheeler loans, car loans and home loans, in its Q4 earnings call projected segment-wise growth of 12-15% for commercial vehicles and 20% for both passenger vehicles and MSME, with an overall growth guidance of\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":171023,"url":"https:\/\/alphastreet.com\/india\/l-and-t-finance-q1-fy26-earnings-results\/","url_meta":{"origin":168175,"position":3},"title":"L and T Finance Q1 FY26 Earnings Results","author":"Chirag Gupta","date":"September 8, 2025","format":false,"excerpt":"L&T Finance Ltd. is a NBFC, offering a range of financial products and services. Company has filed requisite application for necessary registration as Systemically Important Non- Deposit Accepting Core Investment Company (NBFC-CIC). Presenting below are its Q1 FY26 earnings results. \u00a0 Q1 FY26 Earnings Results Total Income:\u00a0\u20b94,259.6 crores, up 12.6%\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"L and T Finance Q1 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/2-4.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/2-4.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/2-4.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/2-4.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/2-4.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/2-4.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":144189,"url":"https:\/\/alphastreet.com\/india\/earnings-summary-of-iifl-finance-limited-for-q4-fy23\/","url_meta":{"origin":168175,"position":4},"title":"Earnings Summary Of IIFL Finance Limited For Q4 FY23","author":"Hardik Bhandare","date":"April 26, 2023","format":false,"excerpt":"IIFL Finance, also known as India Infoline Finance Limited, is a non-banking financial company (NBFC) in India. The company offers a range of financial products and services, including personal loans, business loans, home loans, gold loans, and wealth management services. IIFL Finance has a strong presence in both urban and\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-5.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-5.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-5.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-5.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-5.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-5.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":160615,"url":"https:\/\/alphastreet.com\/india\/bajaj-finance-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":168175,"position":5},"title":"Bajaj Finance Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"April 26, 2024","format":false,"excerpt":"Key highlights from Bajaj Finance Ltd (BAJFINANCE) Q4 FY24 Earnings Concall AUM Growth FY24 delivered record AUM growth of INR 83,236 crores, 34% YoY. Q4 AUM growth was INR 19,647 crores. Growth driven by 36.2 million loans disbursed and 14.5 million new customers added in FY24. BHFL (housing finance subsidiary)\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/168175","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=168175"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/168175\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/162998"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=168175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=168175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=168175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}