Bajaj Finserv Q2 FY27 Results: Profit Rises 23% as Lending Drives Growth

Bajaj Finserv announced its results for the quarter ended 30 September 2026 on 3 November 2026. Consolidated total income increased 16.7% year on year to ₹43,415.65 crore from ₹37,214.56 crore. Profit attributable to the company’s owners rose 22.9% to ₹2,757.66 crore from ₹2,244.10 crore, while total profit after tax, including non-controlling interests, reached ₹5,952.01 crore.

The quarter was supported by growth in Bajaj Finance’s lending business and improved new business profitability at Bajaj Life Insurance. However, Bajaj General Insurance reported lower profit despite higher premiums. The difference matters for evaluating Bajaj Finserv because lending, insurance and newer businesses contribute to earnings in different ways. The key is to examine what drove the increase rather than look at the consolidated profit figure alone.

Consolidated Results: Revenue Up 16.7% and Profit Up 23%

Bajaj Finserv’s consolidated profit before tax increased 26.1% to ₹8,607.58 crore from ₹6,825.13 crore in the year-ago quarter. Total profit after tax grew 25.4% to ₹5,952.01 crore from ₹4,746.47 crore. Profit attributable specifically to Bajaj Finserv’s owners was ₹2,757.66 crore.

Bajaj Finance: Loan Growth and Asset Quality Support Earnings

Bajaj Finance, the group’s principal lending subsidiary, reported a 29% year-on-year rise in consolidated profit after tax to ₹6,367 crore. Its net total income increased 23% to ₹15,974 crore, while assets under management grew 26% to ₹5,84,624 crore as of 30 September 2026. The company added 4.42 million customers and booked 13.45 million new loans during the quarter. This expansion remained the main contributor to the group’s growth.

Asset quality also improved. Bajaj Finance’s gross non-performing asset ratio declined to 1.06% from 1.24% a year ago, and the net ratio decreased to 0.42% from 0.60%. Loan losses and provisions rose 4% to ₹2,166 crore, including ₹337 crore of management and macroeconomic provisions. Within the lending group, Bajaj Housing Finance reported an 18% rise in profit after tax to ₹757 crore, supported by a 25% increase in its assets under management.

Bajaj General: Premium Growth Comes With Profit Pressure

Bajaj General Insurance reported gross written premium of ₹7,056 crore in Q2 FY27, an increase of 10% year on year. Excluding tender driven crop insurance and government health business, premium growth was 21%. However, profit after tax declined around 19% to ₹420 crore from ₹517 crore. The fall came despite higher business volumes, showing that growth in insurance premium does not necessarily translate into an equivalent rise in earnings.

The combined ratio increased to 104.5% from 102.3% a year earlier, while the underwriting loss widened to ₹115 crore from ₹92 crore. A combined ratio above 100% indicates that claims and relevant operating costs exceeded earned premium, before investment income. Lower capital gains also weighed on profit. For the coming quarters, the focus will be on claims experience, pricing discipline and whether faster premium growth can be converted into stronger underwriting results.

Bajaj Life: New Business Value Rises 40%

Bajaj Life Insurance reported a 23% year-on-year increase in gross written premium to ₹10,276 crore. New business premium rose 29% to ₹5,170 crore, while value of new business (VNB) increased around 40% to ₹512 crore from ₹367 crore. VNB estimates the present value of future profits from policies written during the period. Its improvement therefore provides a clearer indication of the economics of new insurance sales than premium growth alone.

The life insurer’s quarterly profit after tax increased to ₹55 crore from ₹13 crore, although the high growth rate was helped by a low year-ago base. In FY26, Bajaj Life had recorded VNB of ₹1,626 crore, according to Bajaj Finserv’s annual report. The September-quarter improvement continues that focus on new business profitability, but sustained VNB growth and stable margins will matter more than the sharp increase in one quarter’s accounting profit.

Half-Year Performance and Key Developments to Track

For the first six months of FY27, Bajaj Finserv reported consolidated total income of ₹85,452.55 crore, up about 18% year on year, and total profit after tax of ₹12,248.68 crore, up about 22%. Profit attributable to the company’s owners rose 17% to ₹5,890.01 crore. By comparison, the company’s FY26 annual report recorded full-year consolidated total income of ₹1,50,530 crore and profit attributable to owners of ₹9,801 crore.

Capital planning is another development to monitor. Bajaj Finance has proposed a qualified institutional placement of up to ₹11,700 crore and a preferential issue of warrants worth up to ₹5,800 crore to Bajaj Finserv, subject to the required approvals and terms. These are proposals, not funds already raised. Alongside the capital decision, investors will need to track credit costs at Bajaj Finance, underwriting margins at Bajaj General, VNB growth at Bajaj Life and losses in newer digital businesses.

Conclusion

Bajaj Finserv’s Q2 FY27 earnings show that lending remains the foundation of the group’s performance. Bajaj Finance delivered higher profit, a larger loan book and improved reported asset quality. Bajaj Life also reported stronger new business value. These gains helped consolidated profit attributable to owners rise 23% even as the general insurance business reported weaker earnings and underwriting pressure.

The next few quarters will test whether this growth can be sustained without a corresponding rise in loan losses or insurance claims costs. The movement in investment valuations also makes quarter-on-quarter profit comparisons less straightforward. Separating profit attributable to owners from total consolidated profit, and following the results of each principal subsidiary, gives a more complete picture of Bajaj Finserv’s financial performance.