Did Bajaj Finance’s Q3 profit decline by 18% sequentially to Rs 4,066 crore?
Synopsis
Bajaj Finance has reported a significant decline in its Q3 FY26 profits, attributed to higher provisions and costs. Despite this, the company showed strong growth in its lending operations. What does this mean for investors and the financial landscape?
Key Takeaways
Net profit fell to Rs 4,066 crore.
18 percent drop sequentially from Q2 FY26.
Higher provisions impacted profitability.
Strong loan growth of 15 percent.
Assets under management rose by 22 percent.
Mumbai, Feb 3 (NationPress) Bajaj Finance revealed a 5.6 percent decrease in its consolidated net profit for the December quarter (Q3 FY26) on Tuesday.
The non-banking financial entity (NBFC) recorded a net profit of Rs 4,066 crore, a drop from Rs 4,308 crore in the same quarter of the previous financial year (Q3 FY25), as per its filing with the stock exchange.
Sequentially, profit experienced an 18 percent decline from Rs 4,947 crore reported in the September quarter (Q2 FY26), according to its regulatory submission.
The company attributed this dip in profitability to increased provisions, which included an accelerated expected credit loss (ECL) charge of Rs 1,406 crore and a one-time gratuity-related expense of Rs 265 crore due to the introduction of new labor codes.
If adjusted for these factors, the net profit would have been Rs 5,317 crore, indicating a 23 percent year-on-year growth.
Despite the reported profit decline, Bajaj Finance witnessed robust growth in its core lending operations.
Net interest income (NII) surged to Rs 11,318 crore in the December quarter, rising from Rs 9,383 crore in the same period last year, as outlined in its regulatory filing.
Loan growth remained consistent during the quarter, with the company issuing 13.90 million new loans in Q3 FY26, marking a 15 percent increase from 12.06 million loans in the corresponding quarter of the previous financial year.
This contributed to a 22 percent year-on-year growth in assets under management (AUM), reaching Rs 4.84 lakh crore, compared to Rs 3.98 lakh crore a year ago.
Loan losses and provisions totaled 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, reflecting a 9 percent increase from Rs 2,043 crore during the same period last year.
As of December 31, 2025, the gross non-performing assets (GNPA) stood at 1.56 percent, slightly above 1.41 percent a year earlier.
Net NPAs remained stable at 0.61 percent, consistent with the same level from the previous financial year, the company reported.
Point of View
It is crucial to recognize that Bajaj Finance's recent profit decline, despite being concerning, does not overshadow its strong performance in lending. The financial sector is dynamic, and this development underscores the importance of careful analysis for investors. The company remains a significant player in the market, and its growth trajectory suggests resilience.
NationPress
11 May 2026
Frequently Asked Questions
What caused the decline in Bajaj Finance's profits?
The decline was primarily due to higher provisions, including an accelerated expected credit loss charge and a one-time gratuity-related expense.
How did Bajaj Finance's net interest income change?
Net interest income rose to Rs 11,318 crore in the December quarter, up from Rs 9,383 crore year-on-year.
What was the loan growth in Q3 FY26?
The company booked 13.90 million new loans in Q3 FY26, marking a 15 percent increase from the previous year.
What are the current gross non-performing assets (GNPA)?
As of December 31, 2025, GNPA stood at 1.56 percent.
How does this profit decline impact investors?
While the profit decline is notable, the strong growth in lending may indicate ongoing opportunities for investors in Bajaj Finance.
