India · Delayed Price · Currency is INR Bajaj Finance Earnings Call Transcripts
Fiscal Year 2026
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AUM grew 22.4% year-over-year to INR 5 lakh crore, with PAT up 26.7% and strong customer additions. FY 2027 guidance targets 22%-24% AUM growth, 4.4%-4.6% ROA, and lower credit costs, supported by AI-driven transformation and robust risk management.
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Core operating performance was robust, with 23% YoY PAT growth and strong AUM expansion, excluding one-time ECL and gratuity charges. Permanent ECL provisioning and AI-driven transformation enhance resilience and efficiency, while segment growth remains healthy despite increased competition.
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Q2 FY26 saw 24% AUM growth, improved operating efficiency, and robust festive loan demand. Credit costs remain elevated, mainly in MSME and two-wheeler portfolios, but risk actions and AI-driven transformation are expected to improve asset quality and efficiency in FY27.
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Q1 FY26 delivered robust AUM and profit growth, with strong customer additions and stable asset quality, but credit costs remain elevated in MSME and two/three-wheeler segments. Leadership transition and AI initiatives are underway, while funding shifts to lower-cost sources.
Fiscal Year 2025
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Q4 FY25 delivered robust AUM and customer growth, with PAT up 19% and strong asset quality. Management remains optimistic for FY26, targeting 24-25% AUM growth, stable NIM, and improved cost efficiency, while prioritizing credit quality and operational leverage.
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AUM grew 28% year-over-year, with profit and customer additions at record highs. Asset quality stabilized, though some segments like used car and rural B2C remain under watch. Strategic partnerships and digital investments are expected to drive future growth.
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AUM grew 29% year-over-year, with strong loan and customer additions, but elevated loan losses led to muted profit growth. Management raised credit cost guidance for FY25 and is focusing on new business lines and operating efficiencies, while maintaining a cautious outlook.
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Q1 FY2025 delivered strong AUM and customer growth, with robust segment performance and stable market share, but faced elevated loan losses due to muted collection efficiencies during the election period. Credit cost and growth guidance remain unchanged, with improvement expected from Q3.