Here is a detailed breakdown of Bajaj Finance Limited covering its corporate profile, fundamental valuation metrics, financial highlights, and latest operating performance.
1. Corporate Profile & Business Model
Bajaj Finance Limited (BFL) is India’s largest non-banking financial company (NBFC) and a subsidiary of Bajaj Finserv Limited. It operates an omnichannel financial services platform serving consumer, SME, commercial, and rural lending segments.
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Core Diversified Segments: Consumer Electronics/Durables Financing, Personal Loans, Two/Three-wheeler Finance, SME & Commercial Loans, Gold Loans, Mortgages (via Bajaj Housing Finance), and Merchant Payment Solutions.
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Customer Base: Reached a customer franchise of 124.43 million (over 12.4 Crore).
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Digital Ecosystem: The Bajaj Finserv app acts as a cross-selling engine driving loan acquisition, credit score checks, deposits, and payments.
2. Key Fundamental Metrics
Following recent RBI regulatory tightening on unsecured consumer credit risk weights, Bajaj Finance has re-rated to trade near its historical lower valuation band:
| Metric / Parameter | Value | Analytical Takeaway |
| Market Capitalization | ~₹6.53 Lakh Crore | Largest NBFC market cap in India. |
| Current Market Price (CMP) | ~₹1,015 – ₹1,050 | (Adjusted post recent stock-split/bonus actions). |
| Trailing P/E Ratio | ~33.5x – 35.4x | Trading below its 5-year average (~40x–41.5x). |
| Price-to-Book (P/B) Ratio | ~6.3x – 6.4x | Reflects premium asset-return productivity. |
| Capital Adequacy Ratio (CRAR) | 21.55% | Exceptionally well-capitalized (Tier-1: ~20.67%). |
| Return on Assets (RoA) | ~4.6% – 4.7% | Industry-best asset profitability. |
| Return on Equity (RoE) | ~19.7% – 20.0% | Sustained long-term equity return capability. |
3. Financial Performance (FY26 & Provisional Q1 FY27)
Bajaj Finance continues to grow its credit book at nearly double the banking industry’s average credit growth rate.
Q1 FY27 Provisional Business Update (Quarter Ending June 30, 2026)
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Assets Under Management (AUM): Reached ₹5,46,900 Crore (~₹5.47 Lakh Cr), up 24% YoY (added ~₹36,900 Crore sequentially).
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New Loans Booked: Scaled to 16.13 million loans, showing a 20% YoY expansion.
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Deposit Book: Scaled to ₹68,500 Crore, providing a steady retail liability buffer (~16% of total borrowings).
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Customer Acquisition: Added 5.10 million net new customer franchises during the quarter.
Financial Snapshot
| Metric (Consolidated) | FY2025 | FY2026 | YoY Growth (%) |
| Net Total Income (NTI) | ₹41,180 Cr | ₹49,820 Cr | +21.0% |
| Profit Before Tax (PBT) | ₹20,120 Cr | ₹25,350 Cr | +26.0% |
| Profit After Tax (PAT) | ₹14,450 Cr | ₹19,020 Cr | +31.6% |
| OpEx-to-Net Total Income | 33.6% | 33.8% | Operating efficiencies maintained |
4. Asset Quality & Risk Metrics
Despite industry-wide pressures on uncollateralized retail loans, Bajaj Finance maintains a tight risk management structure:
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Gross NPA (GNPA): 1.01% (Asset quality remains among the best in retail lending).
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Net NPA (NNPA): 0.41%.
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Provision Coverage Ratio (PCR): ~60% coverage on Stage-3 defaulted assets.
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Credit Cost Outlook: Managed within the guided 145 to 160 bps band.
Key Fundamental Takeaway: Bajaj Finance’s expansion of its customer franchise (124+ million) and AUM scale (₹5.47 Lakh Cr) reinforces its dominant market leadership. With capital adequacy over 21% and return ratios (RoA ~4.7%, RoE ~20%) comfortably above peer averages, the stock presents strong long-term fundamentals.