Bajaj Finance Q2 FY26 Results: Growth Strong, Margins Stable, NPAs Edge Up

Key Highlights: Net Profit: ₹4,875 crore, up 22% YoY, driven by strong loan growth and higher net interest income. Net Interest Income (NII): ₹10,785 crore, up 22% YoY, supported by rising lending volumes. Assets Under Management (AUM): ₹4.62 lakh crore, up 24% YoY, showing continued strong demand across consumer and SME segments. Asset Quality: Gross NPA at 1.24% (vs 1.06% YoY); Net NPA at 0.60%. Slight deterioration reflects pressure in unsecured retail loans. Provisions: Up ~18% YoY to strengthen buffers amid rising risk in select segments. Insights: Bajaj Finance continues to post healthy growth in revenue and profits, maintaining its leadership among NBFCs. However, asset quality needs monitoring as delinquencies inch up with expanding retail and unsecured loan books. Margins remain stable, supported by scale and efficient cost management. What to Watch: Credit costs and asset quality in unsecured retail and SME loans. Growth sustainability amid rising competition in consumer finance. Funding costs and capital adequacy as loan book expands. Tech and digital initiatives improving cross-selling and efficiency. Investor Takeaway: Bajaj Finance remains a high-quality growth play in the lending space, backed by strong brand trust and diversified loan book. With rising NPAs and higher provisioning, near-term caution is warranted, but long-term fundamentals remain intact for investors focused on India’s consumption and credit expansion story.