Bajaj Finance Ltd (BAJFINANCE) Q2 FY27 Results Analysis: AUM Surges 26%, Gold Loans Jump 105%
Bajaj Finance Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 24,546.00 Cr (+22.80% YoY) and PAT growth of +28.70% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 19, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 24,546.00 Cr (+22.80% YoY) |
| PAT (Q2) | Rs. 6,367.00 Cr (+28.70% YoY) |
| EPS (Q2) | Rs. 10.07 (+28.30% YoY) |
| Market cap | Rs. 595,945.19 Cr |
| CMP | Rs. 957.00 |
Quarter Snapshot
Bajaj Finance delivered 26% AUM growth (above its 22-24% FY27 guidance corridor), 28.7% PAT growth, and improving asset quality with GNPA at 1.06%, while ROE of 20.6% exceeded the guided 19-20% band. Gold loans (+105% YoY) have emerged as a new growth engine, though the guided 25-40 bps Opex/NTI improvement was missed with the cost ratio flat at 33.0%, and MSME growth (3% YoY) remains pending its H2 recovery. A Rs.17,500 Cr capital raise (QIP plus warrants) provides balance-sheet capacity for continued growth.
Key Investment Insights
Key Positives
- AUM grew 26% YoY to Rs.5,84,624 Cr, above the FY27 guided corridor of 22-24%
- Consolidated PAT grew 28.7% YoY to Rs.6,367 Cr; PAT before the Rs.337 Cr management/macro provision grew ~33.8%
- PPOP grew 23.2% YoY to Rs.10,699 Cr with cost-to-income at 33.0%, improving 4 bps QoQ from Q1 FY27's 33.4%
- GNPA fell 18 bps YoY to 1.06% and NNPA fell 18 bps YoY to 0.42%; provision coverage ratio stable at 60%
- ROE at 20.6% is above the FY27 guidance band of 19-20%; ROA at 4.6% is at the top of the 4.4-4.6% guidance band
- Gold loans AUM grew 105% YoY to Rs.24,195 Cr; rural consumer finance +63% and MFI +54% YoY
- New loans booked at 13.45 million (+11% YoY); customer franchise at 128.85 million (+16% YoY)
- Credit cost of 1.56% is within the guided 1.45-1.60% band (1.32% excluding the Rs.337 Cr overlay)
Risk Factors
- Opex/NTI improvement guidance of 25-40 bps missed; cost-to-income flat at 33.0% vs 33.1% YoY and range-bound at 32.8-33.4% for five quarters
- MSME lending AUM grew only 3% YoY; management's guided return to double-digit growth by H2 FY27 is yet to materialize
- Management/macro-economic provision overlay of Rs.337 Cr in Q2 FY27 (vs Rs.296 Cr in Q1 FY27) depressed reported PAT growth by ~510 bps
- CRAR declined ~90 bps YoY to 20.33%; NNPA at 0.42% is 2 bps above the long-term <0.4% target
- Captive 2W & 3W finance AUM declined 66% YoY to Rs.2,387 Cr
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.