India · Delayed Price · Currency is INR Bajaj Finance Earnings Call Transcripts
Fiscal Year 2026
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Core operating performance was robust with 23% YoY PAT growth, strong AUM expansion, and record customer additions, despite one-time charges for ECL provisioning and gratuity. Permanent changes to provisioning and accelerated AI adoption enhance resilience and efficiency.
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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 record new loans and customer additions. Profit after tax rose 18%, credit costs stabilized, and asset quality remains within guidance. Strategic partnerships and digital investments are set 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 PAT up 14% and ROE at 19.9%, but loan losses rose due to muted collection efficiencies during the election period. Credit cost guidance is maintained, with improvement expected in H2, and AUM growth guidance remains unchanged.