Bajaj Finance Q2 FY27: Profit Jumps 29% to ₹6,367 Cr on Strong AUM Growth
Bajaj Finance, India's largest non-banking financial company, reported a strong second quarter for FY27 on 19 October 2026. Consolidated net profit rose 29% year-on-year to ₹6,367 crore, beating the Street's expectations on most parameters, while assets under management (AUM) surged 26% to ₹5.85 lakh crore. Management raised its FY27 AUM growth guidance and announced a ₹17,500-crore capital-raising plan.
Q2 FY27 Results: Key Numbers
All figures below are consolidated, for the quarter ended 30 September 2026 (sources: company filings, Economic Times, NDTV Profit):
| Particular | Q2 FY27 | Q2 FY26 | YoY Change |
|---|---|---|---|
| Net profit (PAT) | ₹6,367 crore | ₹4,948 crore | +28.7% |
| Net interest income (NII) | ₹13,335 crore | ₹10,785 crore | +23.6% |
| Net total income | ₹15,974 crore | — | +23.0% |
| Operating profit | ₹10,699 crore | ₹8,685 crore | +23.0% |
| AUM | ₹5.85 lakh crore | — | +26.0% |
| New loans booked | 13.45 million | — | +11.0% |
| Customer franchise | 128.85 million | — | +16.0% |
Growth was led by strong AUM expansion — the company added ₹37,680 crore to its AUM during the quarter alone — and by lower credit costs. Assets under finance grew 27% to ₹5.74 lakh crore. The company added 4.42 million customers in the quarter, taking its franchise past 128 million.
Asset Quality Improves Further
Bajaj Finance's asset quality strengthened during the quarter:
- Gross NPA: 1.06%, down from 1.24% a year ago
- Net NPA: 0.42%, down from 0.60% a year ago
- Net interest margin (NIM): fell 9 basis points sequentially, and management expects some marginal NIM compression going ahead because of the RBI's repo rate hike
- Deposit book: nearing ₹70,000 crore, giving the NBFC a more stable funding base
The company's gold-loan book more than doubled to ₹24,195 crore from ₹11,789 crore a year earlier. The book had 2,022 gold-loan branches at the end of September, and management plans to expand to 2,700–2,800 branches by the end of FY27.
Guidance Raised, ₹17,500-Crore Fundraise Planned
Vice-chairman Rajeev Jain said on the analyst call that the company was "very surprised by the growth" in the quarter. Management:
- Raised FY27 AUM growth guidance to 26–27% (retaining a medium-term corridor of 23–25%)
- Expects to disburse 60–62 million new loans and add 18–20 million customers in FY27
- Proposed a ₹17,500-crore capital raise through a qualified institutional placement (QIP) and preferential warrants, which Jain said was driven by "the growth story of India and the company"
Capital deployment priorities include business expansion, technology investments, and a large AI transformation programme — 600+ AI sub-agents and 250 autonomous agents for fraud detection and automation.
What Brokerages Say
The Q2 numbers largely met Street estimates, and most brokerages retained their positive stance, though views are split on valuation after the recent rally:
- Nuvama maintained BUY with a target of ₹1,175, implying ~22.7% upside from ₹957.35 — citing accelerating AUM growth and contained credit costs
- Emkay maintained REDUCE with a target of ₹1,050, expecting return on equity to compress 100–150 bps over FY27–FY29
Bajaj Finance shares have fallen about 10% in the last three months, so the stock enters the festive season well below its recent highs even as business momentum stays strong.
Why This Matters for Investors
Bajaj Finance is the bellwether of India's NBFC sector, and its results set the tone for lenders like Bajaj Finserv, Shriram Finance, and the big private banks. Two takeaways stand out:
- Demand is resilient: 26% AUM growth and 13.45 million new loans booked in a quarter where the RBI raised the repo rate to 5.50% show retail credit demand holding up. Read our coverage of RBI's repo rate hike to 5.50% and how HDFC, ICICI and Axis Bank reported Q2 FY27.
- Margins are the watchpoint: the 9 bps sequential NIM fall and management's caution on further compression mean investors should track whether the ₹17,500-crore capital raise and deposit growth offset rate pressure. For savers, the flip side is that banks have been slow to raise deposit rates — see highest FD rates after the RBI hike.
FAQs
What was Bajaj Finance's net profit in Q2 FY27?
Consolidated net profit was ₹6,367 crore for the quarter ended 30 September 2026, up 28.7% from ₹4,948 crore in Q2 FY26.
What is Bajaj Finance's AUM now?
Consolidated AUM stood at ₹5.85 lakh crore as of 30 September 2026, up 26% year-on-year, with ₹37,680 crore added during the quarter.
Has Bajaj Finance raised its FY27 guidance?
Yes — management raised FY27 AUM growth guidance to 26–27%, and expects to disburse 60–62 million new loans and add 18–20 million customers in FY27.
What is the ₹17,500-crore capital raise?
Bajaj Finance proposed raising ₹17,500 crore via a qualified institutional placement and preferential warrants to fund business expansion, technology, and the AI transformation programme.
Did Bajaj Finance's asset quality improve?
Yes — gross NPA improved to 1.06% (from 1.24% YoY) and net NPA to 0.42% (from 0.60%), though net interest margin fell 9 bps sequentially.
Conclusion
Bajaj Finance's Q2 FY27 was a clean beat on growth: 29% profit growth, 26% AUM growth, improving asset quality, raised guidance, and a ₹17,500-crore capital raise to fund the next leg. The only wrinkle is margin pressure from higher rates — the NIM fell 9 bps sequentially and could compress further. With the stock down ~10% over three months, Q3 will show whether the NBFC can keep converting growth into returns as the festive season plays out.
Disclaimer: This article is for information only and is not investment advice. Please consult a financial advisor before making investment decisions.