Financial Summary and Outlook of Bajaj Finance

Revenue and Growth Bajaj Finance delivered strong revenue expansion in FY25. Operating revenue for the fourth quarter rose by nearly 24 percent year on year, reflecting continued demand across lending segments. On a full-year basis, revenue increased close to 27 percent compared to FY24, showing consistent double-digit growth momentum. Profitability Net profit for the March quarter stood at around ₹4,546 crore, up 19 percent from the same period last year. For the entire FY25, profit reached about ₹16,779 crore, marking a growth of more than 16 percent year on year. The company has been able to sustain healthy margins despite higher provisioning and operating costs linked to expansion. Asset Quality and Risk Credit quality remains stable, though there has been a minor increase in stress. Gross NPAs rose slightly to about 0.96 percent compared to 0.85 percent a year earlier. Net NPAs are well-controlled at approximately 0.44 percent, reflecting strong recovery mechanisms. Provisions have been raised moderately to provide adequate buffers against any potential deterioration in asset quality. Return Metrics and Efficiency Return ratios continue to showcase operational efficiency. Return on equity for FY25 stood at about 19 to 19.5 percent, while return on assets was around 4.6 percent. Operating cost control remains a focus, with the expense-to-income ratio maintained in the low thirties, balancing growth investments with profitability. Outlook and Guidance Management guidance for FY26 indicates expected AUM growth of 25 to 27 percent, profit growth of 23 to 24 percent, and return on equity in the 19 to 21 percent band. The company plans to continue expanding across consumer lending, SME lending, and new business verticals, while also investing in digital capabilities to strengthen customer engagement. Risks remain in the form of rising credit costs and asset quality pressures if economic conditions or interest rates turn adverse.