Bajaj Finance Q1 Results FY27: Net Profit Jumps 27% to ₹5,986 Crore; NII Rises 23%

Bajaj Finance Q1 FY27 Results

Bajaj Finance Ltd. delivered another strong quarterly performance for the first quarter of FY27, reporting healthy growth in profitability, lending income and assets under management despite maintaining higher provisions.

The leading NBFC reported a 27.4% year-on-year increase in consolidated net profit, while net interest income (NII) and loan growth remained strong across multiple lending segments.

The results were largely driven by continued momentum in retail lending, secured loans and gold finance, reinforcing Bajaj Finance's position as one of India's leading non-banking financial companies.

Financial Highlights

Bajaj Finance reported robust growth across key financial metrics during Q1 FY27.

Q1 FY27 Highlights

Net Profit: ₹5,986 crore

Profit Growth: 27.4% YoY

Net Interest Income (NII): ₹12,571 crore

NII Growth: 23% YoY

Pre-Provision Operating Profit: ₹10,137 crore

The company outperformed market expectations, supported by strong lending income and healthy business expansion.

Assets Under Management Continue to Grow

Bajaj Finance continued its strong lending momentum during the quarter.

Assets Under Management (AUM)

Total AUM: ₹5.46 lakh crore

Growth: 24% YoY

Growth was primarily driven by secured lending and retail financing businesses.

Asset Quality Remains Healthy

The company reported improvement in its asset quality indicators during the quarter.

Asset Quality

Gross NPA (GNPA): 0.96%

Previous Quarter: 1.03%

Net NPA (NNPA): 0.39%

The improvement reflects continued focus on credit quality despite rapid loan book expansion.

Strong Growth Across Lending Segments

Several lending businesses delivered impressive growth during the June quarter.

Business Segment Performance

Gold Loan AUM

Growth: 112% YoY

AUM: ₹21,152 crore

Commercial Vehicle & Tractor Finance

Growth: 102% YoY

AUM: ₹4,355 crore

Rural Consumer Finance

Growth: 49% YoY

AUM: ₹13,451 crore

Urban Consumer Finance

Growth: 38% YoY

AUM: ₹45,220 crore

Loan Against Securities

Growth: 34% YoY

AUM: ₹36,564 crore

Mortgage Portfolio

Growth: 27% YoY

AUM: ₹1,73,624 crore

Car Loans

Growth: 28% YoY

AUM: ₹15,995 crore

The diversified loan portfolio continues to support consistent business growth across multiple customer segments.

Loan Book and Business Momentum

Business activity remained strong during the quarter.

New Loans Booked

Q1 FY27: 16.13 million

Q1 FY26: 13.49 million

Growth: 20% YoY

The steady increase in new loan bookings reflects healthy customer demand across retail and secured lending products.

Provisions and Credit Costs

Loan losses and provisions remained largely stable during the quarter.

Provision Highlights

Loan Losses & Provisions: ₹1,993 crore

The company also created a prudent management and macroeconomic provision of ₹296 crore.

Excluding this additional buffer, provisions declined by approximately 13% compared to the corresponding quarter last year.

Share Price Performance

Ahead of the earnings announcement, Bajaj Finance shares ended the trading session with modest gains.

Stock Performance

Closing Price: ₹1,056.05

Change: +0.18%

Investors will closely monitor management commentary and future lending guidance following the strong quarterly performance.

What This Means for Investors

Bajaj Finance has once again delivered a strong quarterly performance with healthy growth in profit, lending income and assets under management. Rapid expansion across gold loans, mortgages, rural finance and commercial vehicle lending highlights the company's diversified growth strategy.

Improving asset quality and continued loan growth further strengthen the company's long-term outlook. Investors will continue monitoring credit costs, interest margins and loan growth trends as higher interest rates and evolving macroeconomic conditions remain key factors for the NBFC sector.

Disclaimer

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