Bajaj Finance Q1 FY27 AUM Up 24% to ₹546,944 Cr

Bajaj Finance Limited – Investor Presentation Summary

Key Operational Highlights

Assets Under Management (AUM) grew by 24% YoY to ₹546,944 crore as of 30 June 2026 from ₹441,450 crore as of 30 June 2025
AUM addition of ₹36,969 crore in Q1 FY27
New loans booked grew by 20% to 16.13 million in Q1 FY27 compared to 13.49 million in Q1 FY26
Company expects to disburse 60-62 million new loans in FY27
Added 5.10 million new customers in Q1 FY27
Total customer franchise stood at 124.43 million as of 30 June 2026
Cross-sell franchise stood at 79.22 million customers
Added 7,400 distribution points in Q1 FY27
Geographic presence stood at 4,073 locations with over 250,000 active distribution points
Added 194 Gold Loan branches; total Gold Loan branches reached 1,701 and MFI branches at 447
Company plans to open 150-175 new locations in FY27 and expects to close FY27 with 2,700-2,800 Gold Loan branches and 520-550 MFI branches

Key drivers of operational performance: Strong distribution expansion, digital transformation initiatives, and cross-selling strategy across diverse product portfolio.

Segment-wise Performance

Bajaj Finance Limited (Standalone):

AUM: ₹400,388 crore, up 23% YoY
PAT: ₹5,346 crore, up 29% YoY
Urban:Rural:SME:Commercial:Mortgage mix: 41%:16%:18%:15%:10%

Bajaj Housing Finance Limited (BHFL):

AUM: ₹149,624 crore, up 24% YoY
PAT: ₹715 crore, up 23% YoY
Home loans AUM grew 20%, Loan against property grew 22%, Lease rental discounting grew 41%, Developer finance grew 19%
Portfolio composition: HL 54.1% : LAP 10.3% : LRD 23.1% : DF 11.4% : Others 1.1%

Bajaj Financial Securities Limited (BFSL):

AUM: ₹9,770 crore, up 60% YoY
PAT: ₹50 crore, up 22% YoY
Added 108,000 customers in Q1 FY27

Explanation of significant changes in segment performance: Housing finance segment showed strong growth across all products, particularly lease rental discounting. BFSL demonstrated exceptional growth driven by margin trading financing expansion.

Financial Highlights

Consolidated Performance:

Revenue (Net Total Income): ₹15,224 crore, up 22% YoY
EBITDA (Pre-provisioning operating profit): ₹10,137 crore, up 22% YoY
PAT: ₹6,081 crore, up 28% YoY
EPS: ₹9.62 for Q1 FY27
Margins: NIM remained steady in Q1; Operating expenses to Net total income at 33.4%
YoY comparison: All key metrics showed strong growth with PAT up 28%, NII up 23%, and PBT up 28%

Drivers of financial performance: Higher revenue growth, steady margins, improved operational efficiencies, and better credit cost management excluding prudent provisions.

Key Risks: Geopolitical events that could materially adversely affect credit cost outlook; raw material price fluctuations; regulatory changes.

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not explicitly specified in presentation

Balance Sheet Snapshot

Net Debt/Equity: Not explicitly specified
Reserves: Not explicitly specified
Current Assets/Liabilities: Not explicitly specified
Capital adequacy: 20.90% as of 30 June 2026 (Tier-1: 20.01%)
Liquidity buffer: ₹17,847 crore as of 30 June 2026
Deposits book: ₹68,534 crore, contributing 15% of consolidated borrowings

Financial Health Insights: Strong capital adequacy, robust liquidity position, diversified borrowing mix with deposits contributing significantly to funding.

Capex & Cash Flow Health

Capital Expenditure: Not explicitly specified for Q1
Free Cash Flow: Not explicitly specified
Operating Cash Flow: Not explicitly specified
Cost of funds: 7.40% in Q1 FY27, improving 1 bps over Q4 FY26

Investment Rationale: Focus on technology transformation (FINAI), capacity expansion in gold loan and MFI segments, and digital platform enhancement.

Strategic & R&D Initiatives

FINAI Transformation Update:

400 dedicated people in AI unit with plans to add 300 more in digital platforms unit
Significant progress across multiple AI domains: Data for AI, Product discovery, Customer Engagement, Customer Onboarding, Operations processing, Disbursement, Servicing, Debt Management, Technology development
Key metrics: 62 AI agents live, 23 Agentic AI use cases deployed, 100% Business Requirement Documents generated by AI
Disbursal from AI-generated leads: ₹2,551 crore in Q1 FY27, up 235% YoY
Document processing: 32 million documents processed for application, up 196% YoY

Expected impact on growth: AI initiatives expected to improve customer experience, operational efficiency, and drive incremental volume across business segments.

Strategic Rationale: Expanding into high-growth markets through digital transformation, reducing operational costs through automation, and enhancing risk assessment capabilities.

Industry Trends & Business Environment

Macro/Industry Trends: Growing digital adoption in financial services, increasing demand for diversified lending products, regulatory focus on asset quality and governance.

Impact on Company: Driving investments in digital capabilities, maintaining strong risk management framework, and leveraging brand trust to capture market share across segments.

Management Commentary & Growth Outlook

Strategic Outlook: Company aims to be the pre-eminent choice meeting all financial services needs of its 200 million customers through AI-enabled technology architecture.

FY Guidance:

Expects to add 18-20 million new customers in FY27
Expects to disburse 60-62 million new loans in FY27
Confident of delivering 25-40 bps improvement in Opex to NTI in FY27
Optimistic about credit cost outlook for FY27 (contingent on no material adverse effects from geopolitical events)

Long-term Guidance:

AUM growth: 23%-25%
Profit growth: 23%-24%
GNPA: <1.4%
NNPA: <0.5%
ROA: 4.3%-4.7%
ROE: 19%-21%

Risks and Opportunities: Geopolitical events identified as key risk factor; opportunities in digital transformation, cross-selling, and market expansion.

ESG Updates: Not specifically covered in presentation

Digital Transformation: Comprehensive FINAI initiative across all business processes with measurable outcomes in efficiency gains and customer experience improvement.

#CompanyName: Bajaj Finance Limited