Bajaj Finance Q1 preview | Net profit to more than double on strong loan growth

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26 Aug, 2025 12:21

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Bajaj Finance Limited is expected to report another quarter of strong growth when it details its June quarter earnings later on July 27 aided by an increase in loans.

The non-bank lender is expected to report a 135 percent year-on-year growth in net profit at Rs 2,351 crore for the quarter ended June, according to an average of estimates of five brokerages polled by Moneycontrol.

The deposit-taking non-banking finance company is also likely to see a 51 percent year-on-year rise in net interest income in the reporting quarter to Rs 5,579.3 crore led by a spurt in loan disbursements.

Also Read: NBFCs are yet to fix their stressed loan book

New loan booking likely rose 60 percent on a year-on-year basis aided by the low base of the year-ago quarter, which was impacted by the second wave of COVID-19.

The lender has benefitted from the reopening of the economy and a surge in consumer spending during the quarter ended June. The wedding season, high travel demand and reopening of offices boosted consumption on a year-on-year basis in the April-June period.

The company's operating performance is expected to remain strong in the reporting quarter as pre-provision operating profit is likely to rise 30 percent on-year to Rs 4,051 crore.

Brokerage firm Kotak Institutional Equities said it expects the net interest margins to expand 76 basis points on-year to 10.3 percent due to a higher share of high-yielding loans in the quarter.

The cost-to-income ratio of Bajaj Finance may continue to rise on a sequential basis as the company invests in its new digital app launched last year.

At 10.15 am, shares of Bajaj Finance were down 0.4 percent at Rs 6,242 on the National Stock Exchange.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.