Bajaj Finance stock draws focus after strong Q2 FY27 growth

Bajaj Finance reported a stronger second quarter of FY27 on October 19, 2026, with consolidated profit after tax rising 29% year on year to INR 6,367 crore. The result was reported by The Financial Express, which said the increase reflected loan growth and higher net interest income.

Loan growth supports quarterly earnings

Assets under management grew 26% to INR 5,84,624 crore as of September 30, 2026, from INR 4,62,261 crore a year earlier. Profit before tax also increased 29% to INR 8,537 crore.

Net interest income rose 24% to INR 13,335 crore, while net total income advanced 23% to INR 15,974 crore. Bajaj Finance booked 13.45 million new loans during the quarter and added 4.42 million customers, taking its customer base to 128.85 million.

Credit metrics show mixed signals

Gross non-performing assets declined to 1.06% from 1.24% a year earlier, while the net non-performing asset ratio improved to 0.42% from 0.60%. Loan losses and provisions nevertheless increased to INR 2,166 crore, including an additional INR 337 crore provision for management and macroeconomic risks.

Excluding that additional provision, loan losses and provisions fell 12% to INR 1,829 crore. The company also reported that Stage 2 and Stage 3 assets rose to 2.02% of loans from 1.87% in the June quarter, with the increase linked in part to discontinued short-tenor gold-loan schemes.

Capital plans remain ahead

The results followed an October 1 board approval for a capital raise of up to INR 17,500 crore. The proposal includes up to INR 11,700 crore through a qualified institutional placement and convertible warrants of up to INR 5,800 crore to promoter Bajaj Finserv, subject to shareholder and other required approvals.

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