Bajaj Finserv Limited – Investor Presentation Summary

Key Operational Highlights

  • Consolidated customer franchise stands at 18 crore+ customers.
  • The group has a presence in 4,050+ locations across India.
  • Distribution network consists of 570,000+ agents and partners.
  • Bajaj Finance Limited (BFL) booked 1.35 crore new loans in Q2 FY2027, an 11% YoY growth, and added 44.2 lakh new customers.
  • Bajaj Finserv Health Limited processed about 5.7 million healthcare transactions during the quarter.
  • Bajaj Asset Management Limited's average AUM for Q2 stood at ₹37,842 crore, having crossed the ₹40,000 crore mark during the quarter.

Key drivers of operational performance: Strong cross-selling to existing customers, deep and wide distribution network, and significant investments in technology and AI across all subsidiaries.

Segment-wise Performance

  • Lending (BFL & BHFL): AUM growth of 26.5% for BFL (₹584,624 crore) and 24.8% for BHFL (₹158,205 crore). BFL Net Total Income grew 23.0% to ₹15,974 crore.
  • General Insurance (Bajaj General): Gross Written Premium (GWP) grew 10.0% to ₹7,056 crore. GWP excluding Crop & Govt. health grew 21.3% to ₹5,636 crore. Combined Ratio (CoR) stood at 104.5%, impacted by NATCAT claims.
  • Life Insurance (Bajaj Life): Retail Weighted Received Premium (RWRP) grew 5.0% to ₹1,942 crore. Value of New Business (VNB) grew 39.6% to ₹512 crore. New Business Margin (NBM) improved to 21.6% from 17.1%.
  • Emerging Businesses (Health, Direct, AMC): Bajaj Finserv Direct Limited revenue was ₹123 crore. Bajaj Finserv Health Limited total income was ₹192 crore. Bajaj AMC total income was ₹24.2 crore.

Explanation of significant changes in segment performance: Bajaj General's growth was tempered by a tactical reduction in the Crop segment; excluding this, growth was strong in Health and Motor. Bajaj Life's performance was driven by growth in retail and group protection business and product restructuring.

Financial Highlights

Revenue: Rs. 43,416 Crore (Consolidated for Q2 FY2027)

EBITDA: Not Specified

PAT: Rs. 5,952 Crore (Consolidated Profit for Q2 FY2027); Rs. 2,758 Crore (Attributable to owners)

EPS: Not Specified

Margins: Not Specified for consolidated entity. BFL's annualized Return on Assets was 4.6% and Return on Equity was 20.6%.

YoY/QoQ comparison: Q2 FY2027 Consolidated PAT grew 25.4% YoY. H1 FY2027 Consolidated PAT grew 21.6% YoY to ₹12,249 crore.

Drivers of financial performance: Higher revenue growth across lending businesses, strong performance in life insurance VNB, partially offset by higher claims and lower capital gains in the general insurance business.

Comparison to market estimates: Not Specified

Key Risks: Disclosed risks include raw material price hikes (impacting claims), regulatory risks, and volatile equity markets affecting investment income.

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not Specified

Domestic: Not Specified

Export: Not Specified

Regional Breakdown: Not Specified

Balance Sheet Snapshot

Net Debt/Equity: Not Specified for holding co. BFL's Capital Adequacy was 20.33% with Tier-1 capital at 19.43%.

Reserves: Not Specified

Current Assets/Liabilities: Not Specified

Working Capital/Leverage Metrics: Bajaj Finserv Limited (Standalone) Surplus Funds were ₹4,702 crore, up 35.0% YoY.

Financial Health Insights: Strong capital adequacy across lending and insurance subsidiaries. Consolidated Net Worth stood at ₹83,974 crore.

Capex & Cash Flow Health

Capital Expenditure: Not Specified for the group. New businesses (Health, Direct, AMC) have a defined capital burn guidance.

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Not Specified

Investment Rationale: Capital is being deployed into new growth opportunities like wealth management, re-insurance, pensions fund management, and NRI markets through GIFT city.

Strategic & R&D Initiatives

Investments in Innovation: Major focus on Enterprise AI, Consumer AI, Agentic AI, and Data AI across the group. Over 400+ AI projects, with 150+ deployed.

Expected impact on growth: AI initiatives realized impact for H1 FY2027 included ₹6,500+ crore in loan disbursements and ₹90+ crore in insurance revenue.

Strategic Rationale: To drive efficiencies, personalization, risk assessment, and create a superior customer experience.

Industry Trends & Business Environment

Macro/Industry Trends: India is highlighted as one of the fastest-growing large economies, with financial services growing at ~1.5x nominal GDP. Low financial penetration creates a long growth runway.

Impact on Company: The group is positioned to capture this growth through its diversified portfolio across lending, insurance, and investments.

Management Commentary & Growth Outlook

Strategic Outlook: The group's vision is to be the "Lifecycle Partner to every Indian to achieve financial goals."

FY Guidance: Not Specified with exact numbers. The long-range strategy (2025-30) aspires for sustainable profitable growth and meaningful market share.

Market Share Targets: Not Specified quantitatively, but the presentation highlights leadership positions (e.g., 2nd largest private general insurer, 2nd largest non-bank backed private life insurer).

Risks and Opportunities: Management highlighted the opportunity presented by attractive valuations for the Bajaj Finserv ecosystem. Risks from external macro environment and equity market volatility were noted.

ESG Updates

  • The group's ESG focus areas are Governance, Preserving Environment, Customer Centricity, Financial Inclusion, Empowering Society, and Human Capital Management.
  • Insurance portfolios exceeded the 80% target for responsible investments: Bajaj General at 95%, Bajaj Life at 98%.
  • CSR expenditure was ₹416 crore, benefiting 9.3 million people.
  • The group endeavors to be carbon neutral on scope 1 & 2 emissions by FY2032.