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Bajaj Finserv Posts 7.5% YoY Growth in Q2 Net Profit at Rs.2,244 Crore; Revenue Up 11%

Bajaj Finserv Q2 Results: Net Profit Climbs 7.5% to ₹2,244 Crore; Revenue Jumps 11% YoY Amid Solid Business Growth

Bajaj Finserv Ltd on Tuesday announced its Q2 FY26 results, reporting steady growth in both profit and revenue despite market headwinds. The financial services major posted a 7.5% year-on-year rise in consolidated net profit to ₹2,244 crore for the quarter ended September 2025, compared to ₹2,087 crore in the same period last year.

Total consolidated income stood at ₹37,403 crore, marking an 11% YoY growth from ₹33,704 crore. For the first half of FY26, Bajaj Finserv’s total income rose 12% to ₹72,854 crore, while profit after tax surged 19% to ₹5,033 crore, reflecting robust performance across its finance, insurance, and investment businesses.

Despite the positive results, Bajaj Finserv shares declined 6.5% in Tuesday’s trade to ₹1,979 on the NSE, tracking weakness in group company Bajaj Finance, which faced investor concerns over asset quality pressures and a downward revision in growth guidance.

Strong Segmental Performance Boosts Overall Results

Bajaj Finserv’s diverse portfolio—spanning lending, insurance, and asset management—continued to deliver resilient results in Q2 FY26.

Bajaj Finance: Steady Loan Growth and Robust Profitability

Bajaj Finance Ltd, the group’s flagship lending arm, reported a 22% year-on-year rise in consolidated profit after tax to ₹4,876 crore, up from ₹4,000 crore in Q2 FY25. The company’s customer franchise expanded by 4.13 million, while the number of new loans booked during the quarter reached 12.17 million, highlighting continued demand across retail and mortgage segments.

The assets under management (AUM) rose 24% year-on-year to ₹4.62 lakh crore, supported by healthy growth in consumer, SME, and housing loans. Asset quality remained strong, with gross NPAs at 1.24% and net NPAs at 0.6%, reflecting prudent risk management. The capital adequacy ratio stood at a comfortable 21.23%, providing room for sustained lending expansion.

Bajaj Housing Finance Maintains Upward Momentum

Bajaj Housing Finance Ltd (BHFL) continued to strengthen its footprint, posting an 18% increase in profit after tax to ₹643 crore. The subsidiary benefited from steady housing loan demand, strong collections, and controlled operating costs. Its growth underscores the ongoing resilience of India’s home loan market amid rising affordability constraints.

Also Read : Home Sales Value Expected to Rise 19% in FY26 Despite Stable Volumes

Insurance Businesses Drive Diversified Revenue Growth

Bajaj General Insurance: Consistent Profit and Premium Growth

Bajaj General Insurance reported a 9% rise in gross written premium (GWP) to ₹6,413 crore. Excluding the impact of tender-driven government contracts and accounting adjustments for long-term products, the company’s underlying business growth stood at 18%, reflecting strong traction across motor, health, and property segments.

Profit after tax for the general insurance business rose 5% year-on-year to ₹517 crore, backed by improved underwriting performance and controlled claim ratios.

Bajaj Life Insurance: Value of New Business Surges 50%

Bajaj Life Insurance delivered one of its best quarters yet, with the value of new business (VNB) rising 50% year-on-year to ₹367 crore. This was driven by product innovation, favorable product mix, and cost optimization under the insurer’s “Life 2.0” strategy.

The new business margin improved to 14.8%, the highest-ever on a half-yearly basis. The company’s focus on premium-linked products and digital sales channels has helped it capture the evolving life insurance demand in India’s Tier I and II cities.

Emerging Ventures Expand Presence Amid Controlled Losses

Bajaj Finserv’s new-age ventures—Bajaj Finserv Health, Bajaj Finserv Direct, and Bajaj Finserv Asset Management—continued to show healthy scale-up during the quarter.

Combined losses from these emerging verticals stood at ₹141 crore in Q2 FY26, broadly in line with projections. Meanwhile, Bajaj Finserv Asset Management recorded assets under management (AUM) of ₹28,814 crore as of September 30, 2025, reflecting growing investor confidence in the firm’s mutual fund offerings.

These ventures are seen as key long-term growth drivers, enabling Bajaj Finserv to diversify beyond traditional lending and insurance businesses.

Strategic Update: Progress on Allianz Stake Acquisition

Bajaj Finserv also confirmed progress on its earlier announcement to acquire Allianz SE’s 26% stakes in both its life and general insurance subsidiaries. The company received necessary approvals from the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI).

Following approval from the Registrar of Companies (RoC) on October 7, 2025, both subsidiaries have been officially renamed Bajaj Life Insurance Ltd and Bajaj General Insurance Ltd. The consolidation strengthens Bajaj Finserv’s control over its insurance arms and is expected to enhance strategic flexibility and profit retention in future quarters.

Market Outlook: Steady Growth Expected Despite Near-Term Pressure

Despite near-term stock volatility, analysts remain broadly positive on Bajaj Finserv’s long-term outlook. The company’s diversified financial model, consistent asset quality, and growing footprint in insurance and asset management are expected to drive steady double-digit earnings growth over the next few years.

With consumer demand stabilizing and macroeconomic conditions improving, Bajaj Finserv is well-positioned to leverage digital capabilities, expand in underpenetrated markets, and sustain profitability across its verticals.

Sourabh Sharma

Sourabh loves writing about finance and market news. He has a good understanding of IPOs and enjoys covering the latest updates from the stock market. His goal is to share useful and easy-to-read news that helps readers stay informed.

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Sourabh Sharma

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