SMAR Daily Industry News

Bajaj Finserv Reports Q2 FY27 Results: Revenue Up 17%

Bajaj Finserv announced its second-quarter financial results for FY27, reporting a 17% year-on-year increase in operational revenue and total income to Rs 43,416 crore, up from Rs 37,215 crore in the same period last year. Following the earnings report, company shares rose around 2% to trade at approximately Rs 1,719 each on the NSE.

The group's lending arm, Bajaj Finance, expanded its operations during the quarter by adding 4.42 million customers to its franchise and booking 13.45 million new loans. Its quarterly net profit advanced 29%, while loan losses and provisions grew 4% to Rs 2,166 crore. Assets under management at Bajaj Finance expanded 26% year-on-year to roughly Rs 5.85 lakh crore as of September 30, 2026. Asset quality also showed progress, as the gross non-performing asset (NPA) ratio declined to 1.06% from 1.24%, and the net NPA ratio reduced to 0.42% from 0.60%. Additionally, subsidiaries Bajaj Housing Finance and Bajaj Financial Securities posted net profit growth of 18% and 36%, respectively.

Performance in the general insurance division showed mixed outcomes. Bajaj General recorded a 10% increase in gross written premium to Rs 7,056 crore, delivering 21% growth when excluding crop and government health business. Net earned premium rose 23% year-on-year to Rs 2,947 crore. However, higher claim expenses weighed on earnings, with the claim ratio rising to 83.7% from 75.8% a year earlier. Consequently, net profit for the insurance unit declined nearly 19% year-on-year to Rs 420 crore. The division maintained a solvency ratio of 229%, comfortably above the required 150% threshold, while its assets under management grew about 4% to Rs 34,974 crore.

Bajaj Finserv currently holds a market capitalization of approximately Rs 2.75 lakh crore. While the stock has gained over 2% across the past week, it remains down roughly 16% in 2026 so far and has fallen more than 17% over the past 12 months.

For industry observers and investors, these results highlight how strong credit growth and improving asset quality in retail finance can offset localized earnings pressure in general insurance units.

Why it matters

The earnings report highlights how strong credit expansion and improved asset quality can bolster overall earnings despite margin pressure in general insurance operations.

FAQ

What was Bajaj Finserv's revenue in Q2 FY27?
Bajaj Finserv reported operational revenue and total income of Rs 43,416 crore, representing a 17% increase year-on-year.

How did Bajaj Finance perform during the quarter?
Bajaj Finance saw a 29% increase in net profit, added 4.42 million customers, booked 13.45 million new loans, and grew its assets under management by 26% to around Rs 5.85 lakh crore.

Why did Bajaj General's net profit fall?
Bajaj General's net profit dropped nearly 19% to Rs 420 crore as its claim ratio rose from 75.8% to 83.7%.

Source: Economic Times Markets. See the original source for full details.