Synopsis : Bajaj Finserv reported a strong performance for the first quarter of FY27, with consolidated net profit rising 18.2% year-on-year to Rs 6,297 crore, driven primarily by robust growth in its lending businesses. Bajaj Finance and Bajaj Housing Finance continued to deliver healthy loan growth and record asset expansion, while the group's insurance businesses reported mixed performance due to lower investment gains and higher claims. Despite headwinds in insurance, the financial services conglomerate maintained strong overall growth across its lending, wealth and digital businesses.
Bajaj Finserv posted a solid set of first-quarter results for FY27, reporting an 18.2% year-on-year increase in consolidated net profit to Rs 6,297 crore, compared to Rs 5,329 crore in the corresponding quarter last year. The strong earnings growth was largely driven by continued momentum in its lending businesses, which offset weaker profitability in its insurance subsidiaries.
The company's consolidated total income increased 19% year-on-year to Rs 42,036 crore, up from Rs 35,300 crore in the same quarter last year. Investors welcomed the strong earnings performance, with Bajaj Finserv shares closing 6.6% higher at Rs 2,035 following the announcement.
Bajaj Finance, the group's flagship lending business, remained the biggest contributor to overall earnings during the quarter. The non-banking finance company (NBFC) reported a 27.4% increase in profit after tax (PAT) to Rs 5,986 crore, while its net total income grew 22.2% year-on-year to Rs 15,224 crore, reflecting healthy loan growth across multiple lending segments.
The company's Assets Under Management (AUM) expanded 23.9% to Rs 5.47 trillion, compared to Rs 4.41 trillion a year ago. During the quarter, Bajaj Finance disbursed 16.1 million new loans, significantly higher than 13.5 million loans in the corresponding quarter last year. It also added 5.1 million new customers, highlighting continued demand across consumer finance, personal loans, business lending and digital lending products.
Despite rapid loan growth, the company maintained stable asset quality, with loan losses and provisions remaining broadly unchanged at Rs 1,993 crore, reflecting disciplined underwriting standards and effective risk management.
Bajaj Housing Finance also delivered another strong quarter, reporting a 22.6% rise in profit after tax to Rs 715 crore, while net total income increased 16.5% year-on-year to Rs 1,175 crore. The housing finance subsidiary continued to benefit from strong demand in the residential real estate market and expanding home loan disbursements.
Its Assets Under Management grew 24.3% to Rs 1.50 trillion, supported by robust loan disbursements during the quarter. The company also maintained excellent asset quality, with Gross Non-Performing Assets (GNPA) at just 0.29% and Net NPA at 0.12%, among the lowest in the housing finance industry. Management stated that the quarter recorded the highest-ever quarterly AUM growth and loan disbursements since the company's inception.
While lending businesses delivered impressive growth, Bajaj Finserv's insurance subsidiaries reported mixed financial performance.
Bajaj Allianz General Insurance recorded an 11.3% increase in Gross Written Premium (GWP) to Rs 5,789 crore, reflecting healthy premium growth across motor, health and commercial insurance segments. However, profit after tax declined 27.5% to Rs 478 crore, primarily due to lower realised investment gains and a higher claims ratio during the quarter.
Similarly, Bajaj Allianz Life Insurance reported robust business growth but weaker profitability. Gross Written Premium increased 35.1% year-on-year to Rs 7,399 crore, while Retail Weighted Received Premium (RWRP) grew 17.5%, indicating sustained demand for protection and savings products.
However, the life insurance business reported a 70.2% decline in net profit to Rs 51 crore, largely due to lower capital gains from investments and the impact of GST-related changes. Despite the lower earnings, the company's operating performance remained strong. Its Value of New Business (VNB) almost doubled to Rs 271 crore, while the New Business Margin (NBM) improved significantly to 15.9%, compared to 11.1% in the same quarter last year, indicating better profitability from newly sold insurance policies.
Among the group's other businesses, Bajaj Finserv Direct continued improving its financial performance by reducing its quarterly loss to Rs 37 crore, compared to Rs 50 crore a year earlier. Operating revenue increased 32.1% to Rs 107 crore, supported by higher customer activity across digital financial products.
Bajaj Finserv Health reported a marginally higher loss of Rs 44 crore, compared to Rs 43 crore in the corresponding quarter, as the company continued investing in expanding its healthcare ecosystem and digital health services.
Meanwhile, Bajaj AMC narrowed its quarterly loss to Rs 41 crore from Rs 52 crore a year ago as assets under management and operational efficiencies continued improving.
The group's broking subsidiary, Bajaj Financial Securities, also posted healthy growth during the quarter. Profit after tax increased 22% year-on-year to Rs 50 crore, while operating revenue rose 16.5% to Rs 141 crore, supported by higher trading activity and growing retail investor participation.
Overall, Bajaj Finserv's Q1FY27 performance reflected the strength of its diversified financial services model. Its lending businesses continued to deliver strong customer acquisition, healthy loan growth and stable asset quality, while insurance operations maintained robust premium growth despite temporary pressure on profitability from investment income and claims.
With India's retail credit market continuing to expand, rising housing demand, increasing insurance penetration and accelerating digital financial services adoption, Bajaj Finserv remains well positioned to benefit from long-term structural growth opportunities across multiple financial segments. The company is expected to continue focusing on expanding its lending portfolio, strengthening digital platforms, improving insurance profitability and enhancing shareholder value over the coming years.
Disclaimer : This content is intended solely for informational and educational purposes. It should not be considered financial, investment, business or legal advice. Readers and investors should conduct their own research and refer to official company announcements before making any financial or investment decisions.
