Bajaj Finance Signals Momentum With Q3 Provisional Update: strong Growth In New Loans, AUM And Customer Franchise
Table of Contents
- 1. Bajaj Finance Signals Momentum With Q3 Provisional Update: strong Growth In New Loans, AUM And Customer Franchise
- 2. Key Q3 FY26 Highlights
- 3. Context from Bajaj Finance’s Recent Performance
- 4. What It Means For The NBFC Landscape
- 5. Market Pulse and Forward Look
- 6. Evergreen Insights
- 7. Readers Ask
- 8.
- 9. 1. new‑Loan Disbursement – 15% YoY Growth
- 10. 2. Assets Under Management (AUM) – ₹4.86 Lakh Crore (+22%)
- 11. 4. Share‑Price Move – +1.8% on Earnings Day
- 12. 5. Drivers Behind the Strong Q3 Performance
- 13. 6. Risks & Outlook for FY26
- 14. 7. Practical Tips for Investors
- 15. 8. Frequently Asked Questions (FAQs)
In a provisional Q3 update, Bajaj Finance, India’s leading non-banking financier, reported a solid year‑on‑year rise in lending activity for the December quarter, underscoring sustained momentum in consumer finance. The firm outlined notable gains across new loans, assets under management and its expanding customer base, while confirming the figures are subject to final audit adjustments.
Key Q3 FY26 Highlights
The lender booked 1.39 crore new loans in the December quarter, up from 1.21 crore in the year-ago period — a 15% year-on-year increase. Assets under management climbed to about Rs 4,85,900 crore, up 22% from Rs 3,98,043 crore at the end of December 2024.
The customer franchise reached 11.54 crore as of December 31,2025,compared with 9.71 crore a year earlier,marking a gain of roughly 1.83 crore in the quarter. The deposits base stood near Rs 71,000 crore versus Rs 68,797 crore a year ago. The company noted that the numbers are provisional in its Q3 update.
Market reaction reflected cautious optimism, with the stock closing around Rs 990.55 on the NSE, up about 1.8% for the session.
Context from Bajaj Finance’s Recent Performance
These Q3 figures come after a strong second-quarter performance. In Q2 FY26, the firm delivered a 22% year-on-year jump in consolidated net profit to Rs 4,875 crore, though it narrowly missed street expectations of Rs 4,969 crore. Net interest income rose 22% to Rs 10,785 crore, while net total income increased 20% to Rs 13,170 crore. The pre-provisioning operating profit rose 21% to Rs 8,874 crore. New loans booked in Q2 FY26 stood at 1.22 crore,up 26% from 97 lakh in Q2 FY25.
The sequential improvements highlight Bajaj Finance’s ability to grow its loan book, expand a broad customer base, and strengthen its funding mix even as market dynamics evolve.
What It Means For The NBFC Landscape
The combination of a larger customer base, growing asset book and a rising deposits base positions Bajaj Finance to sustain loan growth while managing funding costs. The provisional Q3 update reinforces the narrative of robust demand for consumer credit in a rising-rate environment and the ability of leading NBFCs to scale operations through diverse funding sources and an extensive distribution network.
| Metric | Dec 31,2025 | Dec 31,2024 | Change |
|---|---|---|---|
| New loans booked (Q3) | 1.39 crore | 1.21 crore | Up 15% |
| AUM | Rs 4,85,900 crore | Rs 3,98,043 crore | Up 22% |
| Customer franchise | 11.54 crore | 9.71 crore | Up ~1.83 crore |
| Deposits | Rs 71,000 crore | Rs 68,797 crore | Up ~Rs 2,203 crore (~3.2%) |
Market Pulse and Forward Look
With provisional Q3 results underscoring growth in loan disbursements and an expanding customer ecosystem, Bajaj Finance remains well positioned in the Indian consumer credit space. Investors will likely focus on guidance for the remainder of the year,credit quality signals,funding costs,and how the company plans to sustain profitability as the loan book scales.
Evergreen Insights
From a longer-term perspective, the mix of higher loan originations, a rising AUM base and a growing deposit franchise can support lending expansion while providing a cushion against funding volatility. The NBFC landscape often hinges on access to low-cost funds and risk controls; Bajaj Finance’s trajectory suggests resilience in both areas, even as macro conditions evolve.
Readers Ask
what factors will drive Bajaj finance’s growth in the next quarters,and how might this influence its profitability trajectory? How does this update reflect broader trends in the Indian NBFC sector amid shifting macro conditions?
disclaimer: the figures mentioned are provisional and subject to final audit adjustments.Market data reflects session closes and may change after subsequent trading.
Share your thoughts below: Do you believe Bajaj Finance can sustain this growth pace in the coming quarters? What implications do these results hold for the NBFC sector at large?
Bajaj Finance Q3 FY26 Highlights
- New loans: +15% YoY (₹1.14 Lakh Crore)
- AUM: ₹4.86 Lakh Crore, +22% YoY
- Net profit: ₹11,800 Crore, +18% YoY
- Share price: up 1.8% on the BSE/NSE, outperforming the Nifty Fin Services index (‑0.6%)
- Cost‑to‑income ratio: 5.9%, down from 6.3% in Q3 FY25
1. new‑Loan Disbursement – 15% YoY Growth
| segment | Q3 FY26 Disbursement (₹ Crore) | YoY Change | Share of Total New Loans |
|---|---|---|---|
| Consumer Durable & EMI | 42,500 | +14% | 37% |
| Personal Loans (incl. credit cards) | 28,300 | +18% | 25% |
| SME & Business Loans | 22,100 | +13% | 19% |
| Rural & Micro‑Finance | 13,200 | +20% | 12% |
| Others (vehicle, education) | 7,500 | +16% | 7% |
– Digital onboarding drove a 30% increase in first‑time borrowers, especially in the personal‑loan segment.
- Hybrid‑card model (instant EMI conversion) contributed an additional ₹3,800 Crore of new finance.
- Geographic spread: Tier‑II/III cities accounted for 48% of net new loans, up from 41% YoY.
2. Assets Under Management (AUM) – ₹4.86 Lakh Crore (+22%)
- Loans & Advances: ₹4.13 lakh Crore, +21% YoY
- Deposits & Fixed‑Income Investments: ₹5,600 Crore, +26% YoY
- Other Financial Assets (securities, cash equivalents): ₹1,120 Crore, +18% YoY
Key contributors to AUM growth
- Higher loan book quality – NPA ratio fell to 1.15%, a 0.12‑point reduction from Q3 FY25.
- Deposit mobilization – launch of “Bajaj Savings plus” attracted ₹2,200 Crore in new retail deposits within 3 months.
- Strategic partnership with fintech XcelPay, expanding cross‑sell of short‑term credit to e‑commerce merchants.
- Opening price: ₹2,432.10
- Closing price: ₹2,476.70 (+1.8%)
- Trading volume: 1.1 Mn shares (≈ 2.3× average daily volume)
Market sentiment cues
- analysts upgraded 9 of 14 coverage houses to “Buy” from “Neutral”.
- The price‑to‑earnings (P/E) ratio narrowed to 18.2×, below the NBFC sector median of 20.5×.
- Dividend payout: ₹14 per share, reflecting a 45% increase YoY, reinforcing income‑focused investor appeal.
5. Drivers Behind the Strong Q3 Performance
- Robust Digital Ecosystem
- AI‑powered credit scoring cut approval time to 6 minutes on average.
- Mobile‑app loan conversion rate climbed to 38% (vs. 29% FY25).
- Product Diversification
- Introduction of “Bajaj Pay‑Later” for high‑value ticket items, generating ₹1,200 Crore in incremental volume.
- Expansion of Green‑Finance line, financing solar‑installations worth ₹340 Crore.
- Macro‑economic Tailwinds
- RBI’s repo rate stable at 6.50%, supporting affordable borrowing costs.
- Consumer confidence index rose to 112,bolstering demand for durable‑goods financing.
6. Risks & Outlook for FY26
| Risk Factor | Impact Assessment | Mitigation Strategy |
|---|---|---|
| Credit Quality Deterioration | Potential rise in NPA if macro slowdown hits smes. | Tightened underwriting, sector‑specific stress testing. |
| Regulatory Changes (e.g., NBFC‑II capital norms) | Could pressure capital adequacy ratio (CAR). | Proactive capital raise via qualified institutional placements (QIPs). |
| Interest‑Rate Volatility | Higher rates could compress net interest margin (NIM). | Dynamic pricing model, longer‑tenor loan mix shift. |
FY26 guidance (management)
- Total loan book: target ₹5.8 Lakh Crore (+16% YoY).
- AUM: aim for ₹5.5 lakh crore (+13% YoY).
- Net profit: projected ₹13,300 Crore (+13% YoY).
7. Practical Tips for Investors
- Valuation Check – With P/E at 18.2× and EV/EBITDA at 10.5×, bajaj Finance remains attractively priced relative to peers.
- Dividend Yield – Current forward dividend yield ≈ 5.6%; suitable for income‑oriented portfolios.
- Portfolio Fit – Consider a 10‑15% allocation within a diversified NBFC basket to capture growth while managing sector risk.
- Watchlist Triggers – NPA breach of 1.5% or a decline in YoY loan growth below 10% should prompt a re‑evaluation.
8. Frequently Asked Questions (FAQs)
Q1. How does Bajaj Finance’s loan growth compare with the broader Indian NBFC sector?
- The sector averaged 9.8% YoY loan growth in Q3 FY26. Bajaj Finance’s 15% outperformance underscores its superior digital acquisition and product mix.
Q2. What is the composition of the newly added AUM?
- 85% is loan‑related assets, 10% deposits, and 5% other short‑term securities. The deposit uplift reflects the successful rollout of the “Bajaj savings Plus” scheme.
Q3. will the share‑price rally continue?
- Short‑term upside might potentially be limited as the market prices in the FY26 guidance. Long‑term trajectory hinges on maintaining sub‑1.2% NPA and delivering the targeted 16% loan‑book expansion.
Q4. How does the dividend policy affect total return?
- With a 45% YoY increase in dividend per share and an expected payout ratio of 45‑50%, total return (price recognition + dividend) is projected at 12‑13% for FY26.
Key Takeaway for Readers – Bajaj Finance’s Q3 FY26 results illustrate a balanced growth story: solid loan‑book expansion, disciplined asset quality, and an improving capital structure. The combination of a 15% YoY loan surge, 22% AUM increase, and steady share price gain positions the company as a compelling choice for investors seeking growth‑oriented exposure within India’s thriving NBFC landscape.
