Bajaj Finserv (BAJAJFINSV) Q2 25/26 earnings summary

Executive summary

• Consolidated total income for Q2 FY26 rose 11% year-over-year to ₹37,403 crore, with profit after tax up 8% to ₹2,244 crore; H1 FY26 profit after tax increased 19% to ₹5,033 crore year-over-year.

• Adjusted profit growth for Q2 FY26, excluding insurance MTM effects, was 12%.

• The group completed rebranding of insurance subsidiaries and is progressing on acquiring Allianz's 26% stake, with regulatory approvals received and transaction closure expected in tranches by October 2026.

• Lending businesses and emerging companies delivered strong growth, with notable expansion in health transactions and asset management AUM.

Financial highlights

• Bajaj Finance AUM grew 24% year-over-year to ₹462,261 crore; profit after tax up 22% to ₹4,876 crore.

• Bajaj Housing Finance AUM up 24% to ₹126,749 crore; profit after tax up 18% to ₹643 crore.

• Bajaj General Insurance GWP grew 9% to ₹6,413 crore; profit after tax up 5% to ₹517 crore; AUM reached ₹35,000 crore.

• Bajaj Life Insurance GWP up 28% to ₹8,366 crore; VNB surged 50% to ₹367 crore; new business margin rose to 17.1%.

• Bajaj Finserv Asset Management AUM grew 77% year-over-year to ₹28,815 crore.

Outlook and guidance

• Management expects insurance growth to accelerate above industry in H2, with GST reforms providing medium-term tailwinds.

• Margin expansion in life insurance is expected to be sustained, with further cost optimization and product mix improvements planned.

• Lending businesses anticipate continued strong asset quality and growth, despite some pressure in MSME and two/three-wheeler segments; MSME lending AUM growth expected at 12-13% for FY2026.

• Cost of funds for Bajaj Finance expected at 7.55%-7.60% for FY2026.

• Continued focus on sustainable, profitable growth and digital transformation across businesses.