Bajaj Finance reported strong financial performance in the second quarter of FY27, with consolidated profit after tax (PAT) increasing 29% year-on-year (YoY) to ₹6,367 crore and assets under management (AUM) growing 26% to ₹5,84,624 crore. Net interest income (NII) rose 24% to ₹13,335 crore, supported by loan-book expansion and a lower cost of funds. Asset quality improved, while annualised return on assets (ROA) reached 4.6% and return on equity (ROE) increased to 20.6%.
However, the proposed ₹17,500 crore equity fundraise and a sequential rise in Stage 2 and Stage 3 assets linked to gold-loan portfolio transitions remain important factors for investors to monitor.
Table of Contents
- Bajaj Finance Q2 FY27 Results: Key Highlights
- Consolidated Financial Performance
- What Drove Bajaj Finance's Profit Growth?
- Asset Quality Analysis
- Profitability and Capital Adequacy
- ₹17,500 Crore Capital Raise: Impact on Investors
- Loan Growth, Customer Acquisition and Distribution
- Gold Loans and Microfinance Business
- Funding, Liquidity and Cost of Funds
- Subsidiary Performance
- Standalone Results
- FINAI: AI and Technology Developments
- Bajaj Finance FY27 Management Guidance
- What Investors Should Track Next
- Bajaj Finance Q2 FY27 Results: Investor Verdict
Bajaj Finance announced its Q2 FY27 results on 19 October 2026 for the quarter ended 30 September 2026. The company delivered growth across lending, interest income and profitability, supported by improving headline asset-quality metrics and a lower underlying credit cost.
The key highlights of the Bajaj Finance Q2 Results are:
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Consolidated profit after tax: ₹6,367 crore, up 29% YoY.
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Assets under management: ₹5,84,624 crore, up 26% YoY.
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Net interest income: ₹13,335 crore, up 24% YoY.
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Net total income: ₹15,974 crore, up 23% YoY.
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Gross NPA: 1.06%, compared with 1.24% a year earlier.
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Net NPA: 0.42%, compared with 0.60% a year earlier.
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Annualised ROA: 4.6%, compared with 4.5% in Q2 FY26.
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Annualised ROE: 20.6%, compared with 19.1% in Q2 FY26.
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Cost of funds: 7.31% on a consolidated basis, down 9 basis points sequentially.
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Proposed equity fundraise: Up to ₹17,500 crore through a QIP and a preferential issue of warrants.
The results indicate that Bajaj Finance continued to expand its lending franchise while maintaining profitability and improving its headline credit-quality indicators. The principal questions for investors concern the sustainability of credit-cost improvements, the execution of the capital-raising plan and the profitability of incremental lending.
Check the Bajaj Finance share price, price charts, and valuation metrics to assess the stock alongside its profit growth and asset-quality trends.
Bajaj Finance's consolidated financial performance improved across its main income and profit metrics in Q2 FY27. AUM expansion and stronger net interest income supported operating profit growth, while loan losses and provisions increased at a slower rate than income.
Bajaj Finance Q2 FY27 Results: Financial Summary
| Particulars |
Q2 FY27 and YoY change |
| Assets under management |
₹5,84,624 crore, +26% |
| AUM addition during the quarter |
₹37,680 crore |
| Net interest income |
₹13,335 crore, +24% |
| Net total income |
₹15,974 crore, +23% |
| Operating expenses |
₹5,275 crore, +23% |
| Pre-provisioning operating profit |
₹10,699 crore, +23% |
| Loan losses and provisions |
₹2,166 crore, +4% |
| Profit before tax |
₹8,537 crore, +29% |
| Profit after tax, before minority interest |
₹6,367 crore, +29% |
| Basic earnings per share |
₹10.07, +28% |
All figures are consolidated. Year-on-year changes compare Q2 FY27 with Q2 FY26.
Net Interest Income and Total Income
Net interest income increased 24% to ₹13,335 crore from ₹10,785 crore in Q2 FY26. The growth reflected the expansion of the lending portfolio and a lower cost of funds.
Net total income rose 23% to ₹15,974 crore from ₹12,982 crore. Non-interest income also contributed to the increase, growing 20% YoY to ₹2,639 crore.
NII growth exceeding AUM growth indicates that interest income expanded faster than the overall managed asset base. However, investors should assess whether this relationship continues as funding costs, lending rates and the composition of the loan book change.
Operating Profit and Net Profit
Pre-provisioning operating profit increased 23% to ₹10,699 crore from ₹8,685 crore. This measures operating earnings before loan losses and provisions, making it useful for assessing the underlying earnings capacity of a lender.
Profit before tax increased 29% to ₹8,537 crore, while profit after tax before minority interest rose 29% to ₹6,367 crore.
The reported consolidated net profit after tax was ₹6,366.57 crore, representing a 28.68% YoY increase. This is consistent with the rounded ₹6,367 crore figure in the investor presentation.
Basic earnings per share rose 28% to ₹10.07 from ₹7.85. EPS growth is important because it measures profit attributable to each basic equity share, although future equity issuance could affect this metric.
The Bajaj Finance Q2 FY27 Report shows that profit growth was supported by lending expansion, higher interest income, stronger non-interest income and a lower underlying credit cost. Operating expenses increased broadly in line with income, limiting the improvement in operating efficiency during the quarter.
1. Expansion in the Loan Book
Consolidated AUM increased 26% YoY to ₹5,84,624 crore. Assets under finance grew 27% to ₹5,74,174 crore.
Bajaj Finance added ₹37,680 crore to AUM during Q2 FY27. The expansion in the loan book supported interest income and provided the foundation for higher operating earnings.
The key consideration is whether the company can maintain its lending growth while preserving credit quality and returns on capital.
2. Higher Net Interest Income
NII grew 24% YoY to ₹13,335 crore. The company benefited from loan-book growth and a lower cost of funds.
The consolidated cost of funds stood at 7.31%, down 9 basis points from Q1 FY27. Lower funding costs can support lending profitability, although the final benefit depends on lending yields, competitive pricing and the funding mix.
3. Growth in Non-Interest Income
Non-interest income increased 20% YoY to ₹2,639 crore. This added to overall income growth and reduced reliance on interest income alone.
For investors, the combination of interest and non-interest income growth provides a broader view of the company's earnings drivers.
4. Operating Cost Management
Operating expenses rose 23% to ₹5,275 crore, compared with 23% growth in net total income.
Consequently, the operating expense-to-net total income ratio remained almost unchanged at 33.0%, against 33.1% in Q2 FY26.
This indicates stable operating efficiency rather than a significant improvement during the quarter. Management has guided for a 25 to 40 basis-point improvement in this ratio during FY27. Delivering that improvement would demonstrate that revenue growth and technology investments are translating into operating leverage.
5. Lower Underlying Credit Costs
Reported loan losses and provisions increased 4% YoY to ₹2,166 crore. However, this included an additional ₹337 crore provision for prudent management and macroeconomic considerations.
Excluding this provision, loan losses and provisions fell 12% YoY to ₹1,829 crore.
The annualised loan-loss ratio to average assets under finance improved to 1.56% from 1.88% in Q2 FY26. Excluding the additional provision, the ratio was 1.32%.
The lower underlying credit cost supported profit growth. However, investors should distinguish between reported provisions and the adjusted figure when evaluating the sustainability of earnings.
Asset quality remained a positive feature of the Bajaj Finance Q2 FY27 earnings, with both gross and net non-performing asset ratios improving year-on-year. The main qualification is a sequential increase in Stage 2 and Stage 3 assets during the quarter.
Gross and Net NPA Trends
| Asset-quality metric |
Q2 FY27 |
| Gross NPA as of 30 September 2026 |
1.06% |
| Gross NPA as of 30 September 2025 |
1.24% |
| Net NPA as of 30 September 2026 |
0.42% |
| Net NPA as of 30 September 2025 |
0.60% |
| Provisioning coverage on Stage 3 assets |
60% |
Gross NPA declined by 18 basis points YoY, while net NPA also declined by 18 basis points. These movements indicate an improvement in the company's headline stressed-asset ratios.
Provisioning coverage on Stage 3 assets stood at 60%, providing a measure of the provisions maintained against the most stressed asset category.
Why Did Stage 2 and Stage 3 Assets Increase?
Stage 2 and Stage 3 assets increased by ₹1,601 crore during the quarter, reaching 2.02% of loans compared with 1.87% in Q1 FY27.
Management attributed ₹1,047 crore of this increase to short-tenor gold-loan schemes that are no longer offered. The company described the movement as transitional and stated that it did not expect a credit-cost impact from the transition.
After adjusting for this factor, Stage 2 and Stage 3 assets improved to 1.88% from 1.90% sequentially.
Investor interpretation: The improvement in GNPA and NNPA is encouraging, but the increase in Stage 2 and Stage 3 assets should not be ignored. Investors should monitor whether these assets migrate into Stage 3, lead to higher provisions or stabilise as the discontinued gold-loan schemes run their course.
The distinction between reported and adjusted asset quality is important when evaluating the company's credit-risk profile.
Bajaj Finance maintained strong returns on assets and equity in Q2 FY27. Capital adequacy also remained robust, although the proposed equity raise will change the company's capital base and could affect per-share profitability.
Return on Assets and Return on Equity
| Profitability metric |
Q2 FY27 |
| Annualised ROA |
4.6% |
| Annualised ROA in Q2 FY26 |
4.5% |
| Annualised ROE |
20.6% |
| Annualised ROE in Q2 FY26 |
19.1% |
| Capital adequacy ratio |
20.33% |
| Tier-I capital ratio |
19.43% |
| Consolidated leverage |
5.1x |
Annualised ROA improved by 10 basis points YoY, while ROE increased by 150 basis points. These returns were within the company's stated long-term ROA corridor of 4.3% to 4.7% and ROE corridor of 19% to 21%.
Capital adequacy stood at 20.33%, with Tier-I capital at 19.43%. Consolidated leverage was 5.1 times, within management's stated capital-planning and resilience range of 5.0 to 5.5 times.
These figures indicate that the company entered the proposed fundraising phase with capital ratios and returns within its stated long-term parameters.
However, strong capital adequacy does not eliminate the need to assess future capital requirements. Expansion in lending, subsidiaries, technology and risk-management infrastructure may influence how much capital the company chooses to maintain.
Bajaj Finance's proposed ₹17,500 crore equity capital raise is one of the most important developments accompanying its Q2 FY27 results. The board approved the proposal on 1 October 2026, subject to shareholder approval.
The proposed fundraise consists of two components.
| Fundraising component |
Proposed amount |
| Qualified institutional placement (QIP) |
Up to ₹11,700 crore |
| Preferential issue of warrants to Bajaj Finserv |
Up to ₹5,800 crore |
| Total potential equity raise |
Up to ₹17,500 crore |
The warrants are proposed to be convertible into equity shares and are intended for the promoter and holding company, Bajaj Finserv.
Why Is Bajaj Finance Raising Capital?
Management stated that the fundraising is intended to support India's growth opportunity and maintain the company's growth momentum. The capital is also expected to support subsidiary expansion and strengthen resilience across several areas, including:
- Capital and balance-sheet capacity.
- Technology and artificial intelligence.
- Cybersecurity and compliance.
- Provisioning and risk management.
- Expansion of lending businesses, including gold loans and housing finance.
The proposed raise would provide additional headroom to fund business expansion without relying solely on the existing capital base.
Will the Capital Raise Dilute EPS?
The equity issuance and conversion of warrants could dilute existing shareholders' ownership percentage. The impact on EPS and ROE will depend on the final issue price, the number of shares issued, the timing of the transactions and the returns generated from the additional capital.
If the company deploys the proceeds into profitable lending and subsidiary expansion, the additional capital could support future earnings growth. If deployment takes longer than expected or incremental returns are weaker, per-share profitability and ROE could face near-term pressure.
Investors should track:
- Shareholder approval and completion timelines.
- Final QIP size and pricing.
- The warrant issue terms and conversion conditions.
- The pace of capital deployment.
- Incremental AUM growth and returns generated on the new capital.
The key question is not simply how much capital Bajaj Finance raises, but whether it can convert that capital into profitable growth while maintaining its asset-quality standards.
Bajaj Finance continued to expand its customer base and distribution network in Q2 FY27. These indicators are important because the company's long-term growth depends on acquiring customers, increasing lending relationships and expanding access to its products.
New Loan Disbursements
The company booked 13.45 million new loans during the quarter, compared with 12.17 million in Q2 FY26, an increase of 11%.
Management cautioned that this comparison is not directly comparable because the festive season began earlier in the prior-year quarter.
For FY27, Bajaj Finance guided for 60 million to 62 million new-loan disbursements.
The annual guidance provides a benchmark for tracking whether loan origination momentum remains consistent throughout the financial year.
Customer Franchise Growth
The customer franchise increased by 4.42 million during Q2 FY27 to 128.85 million, representing 16% YoY growth.
The cross-sell franchise stood at 82.36 million. Bajaj Finance expects to add 18 million to 20 million customers during FY27.
A larger customer base and cross-sell franchise provide opportunities to distribute multiple financial products to existing customers. However, the quality and profitability of those relationships remain as important as customer additions.
Distribution Network Expansion
Bajaj Finance added 4,100 distribution points during the quarter, taking its active distribution network above 254,000 points across 4,091 locations.
The company plans to open 150 to 175 new locations during FY27.
The expansion of distribution points and physical locations supports wider market access. Investors should assess whether this expansion translates into productive customer acquisition, profitable lending and sustainable operating efficiency.
Gold loans remained a major area of operational expansion during Q2 FY27. At the same time, the company's microfinance business reported low headline NPA ratios.
Gold-Loan Expansion
Bajaj Finance added 321 gold-loan branches during the quarter, taking its network to 2,022 branches.
The company targets a network of 2,700 to 2,800 gold-loan branches by the end of FY27.
This expansion is relevant to the company's broader lending strategy and its planned deployment of capital. However, the reported increase in Stage 2 and Stage 3 assets associated with discontinued short-tenor gold-loan schemes makes credit-quality monitoring particularly important.
Investors should track the pace of branch expansion alongside disbursement growth, asset-quality trends and actual credit costs.
Microfinance Performance
Bajaj Finance's microfinance business reported the following asset-quality indicators as of 30 September 2026:
The low reported GNPA and NNPA ratios indicate healthy headline asset quality in the microfinance portfolio at the reporting date.
The planned expansion from 480 branches to 520 to 550 branches will increase the network's reach. Investors should monitor whether asset quality remains stable as the business expands.
Funding conditions improved in Q2 FY27, with the consolidated cost of funds declining sequentially. Bajaj Finance also maintained a liquidity buffer and continued to use deposits as part of its funding mix.
| Funding metric |
Q2 FY27 |
| Consolidated cost of funds |
7.31% |
| Sequential change in cost of funds |
Down 9 basis points |
| Liquidity buffer |
₹19,995 crore |
| Deposits |
₹69,754 crore |
| Deposits as a share of consolidated borrowings |
14% |
The decline in funding costs can support NII and lending profitability, provided lending yields and the loan mix remain supportive.
Deposits of ₹69,754 crore represented 14% of consolidated borrowings, providing a source of funding alongside other borrowing channels.
The liquidity buffer stood at ₹19,995 crore. Together, these figures provide insight into the company's funding position and capacity to support its lending operations.
Investors should monitor the cost of funds in subsequent quarters because a reversal in funding-cost trends could affect the sustainability of NII growth.
Bajaj Finance's consolidated results also reflect the performance of its subsidiaries, including Bajaj Housing Finance and Bajaj Financial Securities. Both businesses reported growth in Q2 FY27, although their operating models and financial drivers differ.
Bajaj Housing Finance
Bajaj Housing Finance (BHFL) crossed ₹1.5 lakh crore in AUM during the quarter. Its AUM increased 25% YoY to ₹1,58,205 crore.
| BHFL metric |
Q2 FY27 |
| Assets under management |
₹1,58,205 crore, +25% YoY |
| Profit before tax |
₹980 crore, +18% YoY |
| Profit after tax |
₹757 crore, +18% YoY |
| Gross NPA |
0.29% |
| Net NPA |
0.12% |
| Loan losses and provisions |
₹35 crore |
| Loan losses and provisions in Q2 FY26 |
₹43 crore |
| Annualised loan losses to average assets under finance |
0.10% |
| Comparable ratio in Q2 FY26 |
0.16% |
| Capital adequacy ratio |
21.24% |
BHFL's PAT increased 18% to ₹757 crore, while PBT also rose 18% to ₹980 crore.
Asset quality remained strong, with GNPA at 0.29% and NNPA at 0.12%. Loan losses and provisions declined to ₹35 crore from ₹43 crore a year earlier.
The annualised loan-loss ratio to average assets under finance improved to 0.10% from 0.16%, while the capital adequacy ratio stood at 21.24%.
For investors, the combination of AUM growth, profit growth and low reported NPAs provides evidence of continued expansion alongside stable asset quality.
Bajaj Financial Securities
Bajaj Financial Securities (BFSL) reported growth in assets under management, profit and customer additions.
| BFSL metric |
Q2 FY27 |
| AUM |
₹12,058 crore, +59% YoY |
| Profit after tax |
₹64 crore, +36% YoY |
| Customers added during the quarter |
121,000 |
| Total customer base |
1.61 million |
| Margin trading facility book |
₹10,498 crore |
| ESOP financing |
₹1,560 crore |
BFSL's AUM increased 59% YoY to ₹12,058 crore, while PAT rose 36% to ₹64 crore.
The subsidiary added 121,000 customers during Q2 FY27, taking its customer base to 1.61 million. Its margin trading facility (MTF) book stood at ₹10,498 crore, while ESOP financing amounted to ₹1,560 crore.
The growth in BFSL's AUM and profit demonstrates expansion in another part of the broader financial-services franchise. Investors should continue tracking profitability alongside the growth in its financing activities.
Bajaj Finance's standalone results provide a view of the parent company's financial performance excluding the consolidation of its subsidiaries.
Standalone PAT increased 30.2% YoY to ₹5,536.10 crore from ₹4,250.77 crore in Q2 FY26. Standalone AUM grew 26% YoY to ₹4,26,879 crore.
| Standalone metric |
Q2 FY27 |
| Profit after tax |
₹5,536.10 crore |
| PAT in Q2 FY26 |
₹4,250.77 crore |
| YoY PAT growth |
30.2% |
| Assets under management |
₹4,26,879 crore |
| AUM growth |
26% YoY |
| Gross NPA |
1.33% |
| Net NPA |
0.53% |
| Provisioning coverage |
60% |
| Cost of funds |
7.40% |
| Borrowings |
₹3,70,644 crore |
Standalone GNPA stood at 1.33%, while NNPA was 0.53%. Provisioning coverage was 60%.
The standalone cost of funds was 7.40%, compared with the consolidated cost of funds of 7.31%. Standalone borrowings stood at ₹3,70,644 crore.
The standalone and consolidated results should be evaluated separately because their asset bases, income and profit figures reflect different scopes of reporting. Consolidated performance includes the contribution of subsidiaries, while standalone results focus on the parent company's operations.
Bajaj Finance continued its FINAI transformation programme during Q2 FY27, expanding its use of artificial intelligence in customer servicing, disbursement processes and operational workflows.
As of 30 September 2026, the company had 328 employees in dedicated AI units, representing 171% YoY growth.
Key AI and Technology Metrics
| Indicator |
Q2 FY27 |
| Disbursements generated through AI voice and text bots |
₹2,744 crore |
| YoY growth in AI-led disbursements |
112% |
| DIY customer servicing through AI voice and text bots |
75% |
| DIY servicing through AI bots in Q2 FY26 |
65% |
| AI agents |
130 |
| Agentic AI deployments |
65 |
| Existing-customer face matches |
6.7 million |
| Documents automatically quality-checked |
22.8 million |
| Dedicated AI-unit employees |
328 |
AI voice and text bots generated ₹2,744 crore in disbursements during the quarter, up 112% YoY.
The share of DIY customer servicing handled through AI voice and text bots increased to 75% from 65% a year earlier. The company also reported 130 AI agents and 65 agentic AI deployments.
During the quarter, Bajaj Finance completed 6.7 million existing-customer face matches and automatically quality-checked 22.8 million documents.
What Does AI Mean for Investors?
AI adoption could support operating efficiency by automating customer interactions, verification and document processing. These activities are relevant to management's target of improving the operating expense-to-net total income ratio by 25 to 40 basis points during FY27.
However, Bajaj Finance has not separately disclosed AI as a distinct profit driver. The reported operational metrics demonstrate adoption and scale, but they do not independently establish the amount of profit generated by AI.
Investors should therefore monitor whether AI adoption translates into measurable improvements in operating costs, servicing efficiency and profitability.
Bajaj Finance provided operational targets for FY27 and reiterated its long-term financial sustainability corridors. These targets provide benchmarks for evaluating growth, operating efficiency, profitability and asset quality over subsequent quarters.
FY27 Operational Guidance
| Guidance area |
FY27 target |
| New-loan disbursements |
60 million to 62 million |
| New customers |
18 million to 20 million |
| Improvement in opex-to-NTI ratio |
25 to 40 basis points |
| New locations |
150 to 175 |
| Gold-loan branches |
2,700 to 2,800 |
| Microfinance branches |
520 to 550 |
The operating targets indicate that the company intends to continue expanding its customer franchise and distribution network while improving cost efficiency.
The loan-disbursement and customer-addition targets will help investors assess the pace of franchise expansion. The operating expense target will show whether this expansion is accompanied by operating leverage.
Long-Term Financial Sustainability Corridors
| Financial metric |
Long-term target |
| AUM growth |
23% to 25% |
| Profit growth |
23% to 24% |
| Gross NPA |
Below 1.4% |
| Net NPA |
Below 0.5% |
| Return on assets |
4.3% to 4.7% |
| Return on equity |
19% to 21% |
Bajaj Finance's Q2 FY27 AUM growth of 26% was above its stated long-term AUM growth corridor of 23% to 25%. Its annualised ROA of 4.6% and ROE of 20.6% were within the respective long-term ranges.
Gross NPA of 1.06% and net NPA of 0.42% were also below the stated long-term ceilings of 1.4% and 0.5%.
Management described the quarter as strong across AUM, customer additions, credit cost, profit, ROA and ROE. It also stated that vintage credit performance across three, six and nine months on book continued to improve.
The key consideration is whether these metrics remain within the company's target ranges as the loan book expands and new capital is deployed.
The Bajaj Finance Q2 FY27 Results Analysis points to five major areas that could influence the company's future earnings, returns and valuation.
1. Capital Raise Pricing and Dilution
The proposed ₹17,500 crore capital raise is the most significant near-term corporate development.
Investors should monitor shareholder approval, final pricing, the QIP size, warrant terms and the completion timeline. The resulting dilution will depend on the number of shares issued and the applicable terms.
The returns generated from deploying the capital will be equally important. Higher capital can support expansion, but its long-term value depends on profitable utilisation.
2. Gold-Loan Asset Quality
Management attributed ₹1,047 crore of the increase in Stage 2 and Stage 3 assets to discontinued short-tenor gold-loan schemes.
Although the adjusted ratio improved sequentially, investors should track whether the reported increase remains transitional. Any migration into more stressed asset categories or an increase in credit costs would warrant closer attention.
3. Credit-Cost Sustainability
The annualised loan-loss ratio was 1.56%, compared with 1.88% a year earlier. Excluding the additional ₹337 crore macroeconomic provision, the ratio was 1.32%.
The reported and adjusted figures provide different perspectives on credit costs. Investors should monitor whether underlying credit performance remains strong and how future provisioning requirements affect earnings.
4. Net Interest Income and Funding Costs
NII increased 24% YoY, while AUM rose 26%. The company also reported a sequential decline in its consolidated cost of funds.
Future NII growth will depend on the funding-cost trajectory, lending rates, competitive pricing and loan mix. A sustained reduction in funding costs could support margins, while higher costs or changes in portfolio composition could moderate the benefit.
5. Operating Leverage and Capital Deployment
The operating expense-to-net total income ratio remained broadly stable at 33.0%. Management's target is to improve it by 25 to 40 basis points during FY27.
Investors should track whether AI adoption, distribution expansion and business growth lead to measurable operating efficiency gains.
Following the proposed capital raise, the quality of incremental AUM growth will also matter. Profitable growth that supports returns on capital would be more meaningful than balance-sheet expansion alone.
Bajaj Finance delivered a strong Q2 FY27, with consolidated PAT rising 29% to ₹6,367 crore, AUM increasing 26% to ₹5,84,624 crore and NII growing 24% to ₹13,335 crore. Gross and net NPAs improved year-on-year, while the underlying credit-cost ratio declined after adjusting for the additional macroeconomic provision.
The company's annualised ROA of 4.6% and ROE of 20.6% remained within its stated long-term financial sustainability corridors. Its customer franchise, distribution network and subsidiaries also continued to expand, while the FINAI programme demonstrated increasing adoption of AI across operational processes.
The quarter's key positives include:
- Strong lending and income growth.
- Higher profit and EPS.
- Improved headline asset quality.
- Lower underlying credit costs.
- Healthy capital adequacy and returns.
- Expansion in housing finance, financial securities and gold loans.
However, two developments require continued attention. First, the proposed ₹17,500 crore capital raise could dilute existing shareholders and affect EPS and ROE in the near term. Second, the increase in Stage 2 and Stage 3 assets associated with gold-loan portfolio transitions needs to remain manageable and should not translate into higher credit costs.
Overall, the Bajaj Finance Q2 FY27 Results support the company's record of growth, profitability and diversified financial-services operations. For investors assessing the company's future performance, the most important variables are the terms and deployment of the capital raise, the sustainability of credit-cost improvements, margin trends and progress towards management's operating-efficiency targets.
The quarter provides evidence of strong operating performance, but the durability of future earnings growth will depend on how effectively Bajaj Finance balances expansion, capital allocation and credit risk.
Frequently Asked Questions
1. What were Bajaj Finance's Q2 FY27 results?
Bajaj Finance reported consolidated profit after tax of ₹6,366.57 crore in Q2 FY27, up 28.68% year-on-year. AUM increased 26% to ₹5,84,624 crore, while net interest income rose 24% to ₹13,335 crore. Gross NPA declined to 1.06% and net NPA to 0.42%.
2. What was Bajaj Finance's Q2 FY27 net profit?
Bajaj Finance's consolidated net profit after tax was ₹6,366.57 crore for the quarter ended 30 September 2026, compared with ₹4,948 crore in Q2 FY26 on the rounded figures presented. The company reported growth of approximately 29% year-on-year. Standalone PAT was ₹5,536.10 crore, up 30.2%.
3. Why did Bajaj Finance's profit increase in Q2 FY27?
Profit growth was supported by 26% AUM growth, a 24% increase in net interest income, 20% growth in non-interest income and lower underlying credit costs. Operating expenses increased 23%, while the operating expense-to-net total income ratio remained broadly stable at 33.0%.
4. What is the proposed ₹17,500 crore Bajaj Finance capital raise?
Bajaj Finance's board approved a proposed equity fundraise of up to ₹17,500 crore on 1 October 2026, subject to shareholder approval. It comprises a QIP of up to ₹11,700 crore and a preferential issue of warrants convertible into equity shares worth up to ₹5,800 crore to Bajaj Finserv. The funds are intended to support growth, subsidiary expansion, technology investment and capital resilience.
5. What are the key risks to watch after Bajaj Finance's Q2 FY27 results?
The main factors to monitor are potential shareholder dilution from the proposed equity raise, the increase in Stage 2 and Stage 3 assets linked to gold-loan transitions, the sustainability of lower credit costs, funding-cost trends and the company's ability to improve operating efficiency. Investors should also assess whether new capital generates profitable AUM growth and supports long-term returns.