Bajaj Finance Q1 results: Net profit rises 22% to Rs 4,765 crore

Bajaj Finance

Bajaj Finance on July 24 reported 22% jump in consolidated net profit at Rs 4,765 crore for the quarter ended June 30, 2025, helped by healthy loan growth. It reported consolidated net profit of Rs 3,912 crore in the year-ago period.

The NBFC's consolidated revenue rose 21 percent to Rs 19,524 crore as compared to Rs 16,100 crore in Q1FY25.

On July 24, Bajaj Finance's shares on BSE closed 1.2% lower at Rs 956.5 apiece.

Number of new loans booked in Q1FY26 was 13.49 million as against 10.97 million in Q1 FY25, a growth of 23 percent, said the company.

Customer franchise stood at 106.51 million as of June 30, 2025, compared to 88.11 million as of June 30, 2024, a growth of 21 percent. Customer franchise grew by 4.69 million in Q1FY26.

Net interest income increased by 22 percent in Q1FY26 to Rs 10,227 crore from Rs 8,365 crore in Q1FY25. Net total income increased by 21 percent in Q1FY26 to Rs 12,610 crore from Rs 10,418 crore in Q1FY25.

Assets under management

Assets under management (AUM) grew by 25 percent to Rs 4.42 lakh crore as of June 30, 2025 from Rs 3.54 lakh crore as of June 30, 2024.

The major component of the total AUM of the company is mortgages worth Rs 1.36 lakh crore, followed by Urban B2C Loans of Rs 92,333 crore, MSME Lending of Rs 52,538 crore, as per investor presentation.

However, Two & Three-Wheeler Finance AUM declined by 20 percent on-year to Rs 15,703 crore in April-June quarter, from Rs 19,689 crore in a year ago period.

In the reporting quarter, Bajaj Finance for the first time reported a microfinance loans AUM of Rs 1,556 crore.

Asset quality

Gross NPA and Net NPA as of June 30, 2025 stood at 1.03 percent and 0.50 percent, respectively, as against 0.86 percent and 0.38 percent as of June 30, 2024. The provisioning coverage ratio on stage 3 assets was 52 percent.

In Q1FY26, net increase in stage 2 & 3 assets was Rs 878 crore, including Rs 219 crore of standard accounts which were restructured. Stage 2 assets increased by Rs 324 crore and stage 3 assets increased by Rs 554 crore, as per investor presentation.

"The Company is observing improvement in early vintages across all portfolios except MSME," company said.

Loan losses and provisions were up 26 percent to Rs 2,120 crore in Q1FY26 as against Rs 1,685 crore in Q1FY25.

Liquidity and cost of funds

The company maintained the liquidity buffer of Rs 14,922 crore as of 30 June 2025.

In the reporting quarter, the company's cost of funds has improved by 20 basis points (Bps) on-quarter to 7.79 percent. "FY26 cost of funds is expected to be 7.60-7.65 percent," company said.

Deposits book grew by 15 percent on-year and stood at Rs 72,109 crore as of June 30, 2025. Deposits contributed to 19 percent of consolidated borrowings as of June 30, 2025.

"To optimize cost of funds, the Company is reducing reliance on Deposits for the next 12 months," company said in presentation.

Bajaj Housing Finance

The company reported a 21 percent on-year rise in its net profit to Rs 583 crore in the first quarter of the current financial year, from Rs Rs 483 crore in a year ago period.

Assets under management grew by 24 percent to Rs 120,420 crore as of June 30, 2025 from Rs 97,071 crore as of June 30, 2024.

Net interest income increased by 33 percent in Q1FY26 to Rs 887 crore from Rs 665 crore in Q1FY25.

Gross NPA and Net NPA as of June 30, 2025 stood at 0.30 percent and 0.13 percent, respectively, as against 0.28 percent and 0.11 percent as of June 30, 2024. BHFL has provisioning coverage ratio of 56 percent on stage 3 assets. Loan losses and provisions in Q1FY26 was Rs 41 crore as against Rs 10 crore in Q1FY25.

Bajaj Financial Securities

The company reported a 37 percent on-year rise in its net profit to Rs 41 crore in April-June quarter, from Rs 30 crore in a similar period last year.

Assets under finance grew by 39 percent to Rs 6,098 crore as of June 30, 2025 from Rs 4,390 crore as of June 30, 2024.

Net interest income increased by 31 percent in Q1FY26 to Rs 63 crore from Rs 48 crore in Q1FY25.

Net total income increased by 19 percent in Q1FY26 to Rs 121 crore from Rs 102 crore in Q1FY25.