Bajaj Finserv Q1 FY26 Results: Consolidated Profit Jumps 30% YoY, Revenue Up 13%

 Bajaj Finserv delivered a strong start to FY26 with consolidated net profit surging 30% YoY to ₹2,789 crore in Q1, driven by robust lending growth and solid insurance performance. Total income rose 13% to over ₹35,400 crore, though higher provisions in the lending arm Bajaj Finance and marginal asset quality pressure kept investor sentiment cautious.

Q1 FY26 Financial Highlights

• Consolidated Net Profit (PAT): ₹2,789 cr — up ~30.4% YoY from ₹2,138 cr in Q1 FY25 

• Total Income / Revenue: ₹35,439–35,451 cr — up ~12.6–13% YoY 

🏢 Segment Performance Breakdown

• Bajaj Finance (BFL):

  • Net profit surged 20% YoY to ₹4,699 cr; total income rose ~21% to ₹12,610 cr

  • Asset Under Management (AUM) jumped ~25% to ₹4,41,450 cr

  • Gross NPA/Net NPA at 1.03% / 0.50%; provisioning coverage ~52%

  • Credit costs climbed to ₹2,120 cr (up ~26% YoY) 

• Insurance Businesses:

  • General Insurance (BAGIC): Gross written premiums up ~9–15%, PAT up 15% to ₹660 cr; claim ratio improved to ~71%

  • Life Insurance (BALIC): Net Value of New Business (VNB) grew ~39% to ₹145 cr; renewal premiums up ~28% YoY; solvency ratio at ~334% 

• Emerging Businesses:

  • Losses widened modestly to ₹142 cr in Q1 FY26 (from ₹119 cr in Q1 FY25) — investments in healthtech, direct platforms, AMC, venture initiatives remain ongoing 

📉 Market Reaction & Analyst Sentiment

• Stock Response: Shares of Bajaj Finserv declined ~3–3.5% on July 25, closing around ₹1,960–1,985, weighed down primarily by asset quality concerns in SME/MSME exposure and elevated provisions 

• Peer Pressure: Bajaj Finance stock dragged benchmark indices—Nifty and Sensex both dipped ~0.5%—despite overall strong earnings across the group 

🔍 Drivers Behind the Results

• Strong Core Gains: Growth was driven by robust interest income, insurance premiums, fee‑based services, and expanding AUM across lending and asset management.

• Provisions Rise: Elevated provisions, particularly in SME/MSME portfolios and credit cards, weighed on margins and raised investor cautiousness.

• Insurance Momentum: Both general and life insurance segments delivered double-digit growth in premiums and profits, supported by better claims experience and rising VNB.

• Emerging Ventures: Investments in newer verticals continue to absorb capital, though losses are seen as part of strategic expansion plans.

📌 Quick Summary Table

Metric	Q1 FY26 Result	YoY Change	Insight
Consolidated PAT	₹2,789 cr	+30%	Strong group-level profitability
Total Income	₹35,450 cr	+13%	Growth across business lines
Bajaj Finance PAT	₹4,699 cr	+20%	Lending remains core driver
Credit Costs (Provisions)	₹2,120 cr	+26%	Elevated, raising caution
Gross / Net NPA	1.03% / 0.50%	Higher	Asset quality slightly deteriorated
Insurance Earnings	BAGIC ₹660 cr, BALIC VNB ₹145 cr	+15% / +39%	Insurers contributing well
Emerging Biz Losses	₹142 cr	Slightly up	As expected for scaling operations

✅ Takeaways & Outlook

Bajaj Finserv demonstrated solid growth and diversification across its lending, insurance, and emerging businesses, delivering a strong ~30% profit rise in Q1 FY26. While credit costs and rising NPAs in lending segments triggered caution, robust performance in insurance and growing scale in emerging verticals support a positive medium-term outlook. Near-term investor focus will remain on asset quality trends and cost control in SME/credit portfolios.

Source:-Bajaj Finserv, ChatGpt