Will Bajaj Finance Maintain Its Growth Momentum Amid Higher Borrowing Costs?
About Bajaj Finance
Bajaj Finance Limited, a leading non-banking financial company (NBFC), operates across consumer, SME, and rural lending segments. Known for its tech-driven distribution network, the company continues to expand its reach via digital and co-lending models. Despite rising funding costs, Bajaj Finance has maintained strong profitability through efficient risk management and cross-selling strategies.
Q2 FY26 results reaffirm Bajaj Finance’s position as a resilient NBFC with healthy growth in interest income and stable asset quality despite a challenging credit environment.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY25 | Q2 FY26 | Change |
|---|---|---|---|
| Net Interest Income (NII) | ₹8,835 Cr | ₹10,785 Cr | +22% |
| Operating Profit | ₹8,437 Cr | ₹8,874 Cr | +5% |
| Net Profit | ₹3,995 Cr | ₹4,875 Cr | +22% |
| Gross NPA | 1.03% | 1.06% | +0.03 pts |
NII ₹10,785 Cr — grew 22% YoY, supported by higher loan book and better yields.
Net Profit ₹4,875 Cr — stable growth despite higher provisioning.
Asset Quality — Gross NPA marginally up to 1.06%; remains best-in-class among NBFC peers.
To monitor credit sector dynamics, investors may track Nifty Strategy for lending sector cues.
Peer Comparison
| Company | Focus Area | Gross NPA |
|---|---|---|
| Bajaj Finance | Retail NBFC | 1.06% |
| HDFC Bank | Consumer Loans | 1.34% |
| Cholamandalam | Vehicle Finance | 2.10% |
Bajaj Finance continues to lead in asset quality metrics, underscoring superior risk controls and disciplined borrower profiling.
Strengths & Weaknesses
Strengths
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Weaknesses
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Bajaj Finance’s deep retail presence provides resilience even as the broader credit cycle normalizes.
Opportunities & Threats
Opportunities
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Threats
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As India’s credit demand expands, Bajaj Finance’s leadership and technological adaptability offer long-term strength amid regulatory evolution.
Valuation & Investment View
- Short-term: Steady loan growth; moderate valuation upside.
- Medium-term: Positive due to consistent NIM management.
- Long-term: Structural leader with digital scale advantage.
For tactical financial trades, refer to Bank Nifty Strategy to align banking sector positions.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, observes that Bajaj Finance’s scalability and low NPA profile make it a long-term portfolio compounder. Explore more financial analyses at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries On NBFC Stocks
- How Does Bajaj Finance Maintain Low NPAs?
- What Are Key Risks For Indian NBFCs In FY26?
- Can Digital Transformation Drive Valuation Upside?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions.
