Bajaj Finserv Q1 Results: Net Profit Rises 18.2% to ₹6,297 Cr as Lending Offsets Insurance Dip

Bajaj Finserv reported an 18.2% year-on-year rise in consolidated net profit, reaching ₹6,297 crore for the first quarter of financial year 2026-27.

This compares to a net profit of ₹5,329 crore during the corresponding period last year.

The holding company saw its consolidated total income rise 19% year-on-year to ₹42,036 crore, up from ₹35,300 crore in the previous fiscal.

After announcing its earnings, shares of Bajaj Finserv ended Friday's trading session 6.6% higher, settling at ₹2,035 apiece.

Lending Segments Lead Performance

The group's primary lending division, Bajaj Finance, spearheaded the earnings growth. Its profit after tax jumped 27.4% year-on-year to ₹5,986 crore, while net total income expanded 22.2% to ₹15,224 crore.

Assets under management (AUM) for Bajaj Finance surged 23.9% to ₹5.47 trillion from ₹4.41 trillion a year ago. The lender processed 16.1 million new loans, up from 13.5 million a year earlier, and acquired 5.1 million fresh customers during the quarter. Meanwhile, loan losses alongside provisions held steady at ₹1,993 crore.

Bajaj Housing Finance also posted strong metrics, reporting a 22.6% rise in net profit to ₹715 crore. Its net total income climbed 16.5% to ₹1,175 crore.

The housing finance arm recorded a 24.3% growth in AUM, taking the total to ₹1.50 trillion. Gross non-performing assets (GNPAs) remained low at 0.29%, with net bad loans at 0.12%. The company stated the quarter saw its highest-ever quarterly AUM growth and disbursements.

Insurance Subsidiaries Face Headwinds

The conglomerate's insurance units saw profits decline. Bajaj General Insurance logged an 11.3% growth in gross written premium, generating ₹5,789 crore. However, its net profit dropped 27.5% to ₹478 crore, dragged down by reduced investment gains and elevated claim payouts.

Similarly, Bajaj Life Insurance grew gross written premium by 35.1% to ₹7,399 crore, while retail weighted received premium grew 17.5%. Despite this top-line growth, net profit plunged 70.2% to ₹51 crore. Lower capital gains and the impact of the goods and services tax (GST) drove the decline.

On a positive note, the life insurance division almost doubled its value of new business, which hit ₹271 crore. Margins for new business expanded to 15.9%, up from 11.1% during the same quarter last year.

Performance of Other Subsidiaries

Smaller business units displayed varying trajectories. Bajaj Finserv Direct reduced its quarterly losses to ₹37 crore, down from ₹50 crore, as operating revenue rose 32.1% to ₹107 crore.

Meanwhile, Bajaj Finserv Health posted a net loss of ₹44 crore, slightly wider than the ₹43 crore loss recorded a year earlier. The asset management arm, Bajaj AMC, managed to lower its quarterly loss from ₹52 crore to ₹41 crore.

Bajaj Financial Securities posted a 22% rise in net profit, reaching ₹50 crore as operating revenue increased 16.5% to ₹141 crore.