Strong AUM growth meets a major capital-raising plan

Strong AUM growth meets a major capital-raising plan BAJAJFINANCE ###: Bajaj Finance’s Q2 FY27 business update highlights continued growth in its lending franchise, alongside a proposed ₹17,500 crore capital raise. Bajaj Finance reported assets under management (AUM) of approximately ₹5.85 lakh crore as of 30 September 2026, up 26.5% year-on-year. Its customer franchise expanded to 128.85 million, while new loans booked increased 11% to 13.45 million during the quarter. Why it matters: Strong AUM growth and a larger customer base reinforce Bajaj Finance’s position in India’s consumer and diversified lending market. However, sustaining this growth will depend on credit quality, funding costs, customer acquisition economics and disciplined risk management. My view: The proposed ₹17,500 crore capital raise, comprising a ₹11,700 crore qualified institutional placement (QIP) and ₹5,800 crore in preferential warrants, is an important development to monitor. Additional capital could support future expansion, but investors should assess the impact on capital efficiency, return on equity and potential dilution from the warrants. What I’m watching: Q2 FY27 financial results expected after the scheduled 19 October 2026 board meeting, AUM growth, net interest margins, credit costs, asset quality, operating expenses and return on equity. Stance: Bajaj Finance’s growth momentum is encouraging, but the key investment test is whether scale translates into sustainable earnings growth and attractive risk-adjusted returns. The capital raise and upcoming quarterly results will be important checkpoints. Disclosure: This post is for educational and informational purposes only and is not a recommendation to buy or sell any security. Please conduct your own research before making investment decisions. Suggested tags: Equity Research + Fundamental Views + NBFC + Consumer Finance + Banking & Financial Services