Synopsis

Bajaj Finance shares rose after the company reported strong Q1 FY27 business growth, driven by higher assets under management, customer additions and loan bookings. The NBFC also continued its steady expansion in deposits, while stable asset quality and healthy profitability reinforced confidence in its long-term growth trajectory.

Bajaj Finance gains after reporting robust customer and AUM growth in Q1.

Shares of Bajaj Finance gained 2% to Rs 1,039 on Friday after the company released its business update for the quarter ended June 30, 2026, reporting growth in its customer franchise, loan bookings, assets under management (AUM), and deposit book.

Assets under management (AUM) rose 24% year-on-year to approximately Rs 5.46 lakh crore as of June 30, 2026, compared with Rs 4.41 lakh crore a year ago. The AUM increased by approximately Rs 36,900 crore during the first quarter of FY27. The company's deposit book stood at approximately Rs 68,500 crore as of June 30, 2026.

Also read: India's lending boom might no longer be largely bank-led

The company's customer franchise stood at 124.43 million as of June 30, 2026, compared with 106.51 million a year earlier. Bajaj Finance added 5.10 million customers during the June quarter of FY27.

New loans booked during the quarter grew 20% year-on-year to 16.13 million from 13.49 million in the corresponding quarter of the previous financial year.

The leading NBFC reported a 22% YoY rise in consolidated net profit to Rs 5,553 crore for the fourth quarter of FY26, compared with Rs 4,546 crore in the year-ago period.

The lender's assets under management (AUM) crossed the Rs 5 lakh crore milestone, standing at Rs 5.09 lakh crore as of March 2026, compared to Rs 4.16 lakh crore a year ago, marking a 22% growth. During the quarter, AUM expanded by Rs 25,498 crore.

Operationally, Bajaj Finance continued to see strong traction in customer acquisition and loan disbursals. The company booked 12.89 million new loans during the quarter, up 20% from 10.7 million in the year-ago period. Its customer franchise grew 17% YoY to 119.33 million, with an addition of 3.93 million customers in Q4 alone.

Read more: RBI seeks bigger money market access: What draft proposals mean for NBFCs and companies

Asset quality remained stable, with gross non-performing assets (GNPA) at 1.01% and net NPA at 0.41% as of March-end, compared to 0.96% and 0.44%, respectively, a year ago. Provisioning coverage on stage 3 assets stood at 60%.

Loan losses and provisions declined to Rs 2,008 crore from Rs 2,167 crore a year ago, while the annualised credit cost improved to 1.65% from 2.17%, indicating better portfolio quality and collections.

Shares of the company have risen 17% in the last one month, but are up only 5% on a year-to-date basis.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

...moreless

...moreless