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Bajaj Finance Q3 Profit Dips 18% on Higher Provisions, Core Business Strong

Bajaj Finance reported an 18% sequential decline in its Q3 consolidated net profit to Rs 4,066 crore, primarily impacted by higher provisions including an accelerated expected credit loss charge. However, adjusted for these one-off items, the net profit would have shown a robust 23% year-on-year growth. The company's core lending business remained strong, with assets under management growing 22% and new loan bookings increasing by 15%. While gross NPAs saw a slight increase, net NPAs remained stable, indicating controlled asset quality.

Key Points: Bajaj Finance Q3 Profit Falls 18% Sequentially to Rs 4,066 Cr

  • Q3 profit down 18% sequentially
  • Impacted by Rs 1,406 crore ECL provision
  • Core lending shows strong growth with 22% AUM rise
  • Gross NPA edges up to 1.56%
2 min read

Bajaj Finance's Q3 profit falls 18 pc sequentially to Rs 4,066 crore

Bajaj Finance Q3 net profit fell 18% sequentially to Rs 4,066 crore due to higher provisions, but adjusted profit and loan growth show underlying strength.

"Adjusted for these items, net profit would have stood at Rs 5,317 crore -- reflecting a 23 per cent year-on-year growth. - Regulatory Filing"

Mumbai, Feb 3

Bajaj Finance on Tuesday reported a 5.6 per cent decline in consolidated net profit for the December quarter.

The non-banking financial company (NBFC) posted a net profit of Rs 4,066 crore, compared to Rs 4,308 crore in the same quarter last financial year (Q3 FY25), according to its stock exchange filing.

On a sequential basis, profit fell 18 per cent from Rs 4,947 crore reported in the September quarter (Q2 FY26), as per its regulatory filing.

The company said profitability was impacted by higher provisions, including an accelerated expected credit loss (ECL) charge of Rs 1,406 crore and a one-time gratuity-related expense of Rs 265 crore following the implementation of new labour codes.

Adjusted for these items, net profit would have stood at Rs 5,317 crore -- reflecting a 23 per cent year-on-year growth.

Despite the drop in reported profit, Bajaj Finance saw strong growth in its core lending business.

Net interest income (NII) rose to Rs 11,318 crore in the December quarter, up from Rs 9,383 crore in the year-ago period, as per its regulatory filing.

Loan growth remained steady during the quarter. The company booked 13.90 million new loans in Q3 FY26, up 15 per cent from 12.06 million loans in the same quarter last financial year.

This helped assets under management (AUM) grow 22 per cent year-on-year to Rs 4.84 lakh crore, compared with Rs 3.98 lakh crore a year ago.

Loan losses and provisions stood at Rs 3,625 crore during the quarter. Excluding the accelerated ECL provision of Rs 1,406 crore, loan losses and provisions were Rs 2,219 crore, up 9 per cent from Rs 2,043 crore in the corresponding period last year.

As of December 31, 2025, gross non-performing assets (GNPA) stood at 1.56 per cent, slightly higher than 1.41 per cent a year earlier.

Net NPAs remained stable at 0.61 per cent compared to the same level last financial year, the company added.

- IANS

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Reader Comments

S
Shreya B
As a customer, I'm more concerned about the rising GNPA. 1.56% might seem small, but the trend is upward. Are they lending too aggressively to maintain growth? Hope they don't compromise on credit quality for volume.
A
Arjun K
The core business is firing on all cylinders! NII up sharply and booking 1.4 crore new loans in a quarter is no joke. The profit fall is purely accounting due to ECL and gratuity. Solid company, temporary blip.
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Priya S
This is why I prefer to invest in solid NBFCs like Bajaj Finance. They are being conservative and making higher provisions upfront. Better than showing fake profits and having a crisis later. Prudent management.
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Michael C
Interesting case study. The market might overreact to the headline number, but the adjusted metrics tell a different story. The gratuity expense is a one-off due to regulatory change. The loan growth is impressive in this macro environment.
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Karthik V
With all due respect to the management, communication could be better. The average retail investor will only see "profit falls 18%" and panic. They should highlight the adjusted performance more clearly in their investor presentations.
N
Nisha Z

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