New Delhi (Economy India): Bajaj Finance Limited (BFL), India’s leading non-banking financial company (NBFC), reported a 23% year-on-year (YoY) increase in its consolidated net profit to ₹4,948 crore for the quarter ended September 30, 2025. The robust performance was driven by healthy loan growth, strong festive demand, and continued traction in digital and consumer lending segments.
During the same period last year, the company posted a net profit of ₹4,014 crore, signaling steady financial growth despite global economic headwinds.
Revenue and Business Performance
Bajaj Finance’s total income witnessed double-digit growth during the quarter, supported by increased loan disbursements across consumer, SME, and commercial segments. The company’s assets under management (AUM) expanded significantly, backed by strong demand in the festive quarter and rising credit penetration in rural and semi-urban markets.
According to the management, the consumer durable finance, personal loan, and rural lending businesses were key growth drivers, benefiting from festive shopping and higher retail spending. The NBFC’s focus on expanding its presence through both physical branches and digital channels has also strengthened its customer base, which now spans across 4,000+ towns and cities.
Operational Efficiency and Asset Quality
Bajaj Finance maintained a strong operational performance in Q2. Its net interest margin (NIM) remained stable due to efficient cost management and a favorable funding mix.
The company’s gross non-performing asset (GNPA) ratio improved compared to the previous quarter, reflecting effective credit risk control. Analysts noted that the improvement in asset quality is a result of stronger underwriting practices, enhanced data analytics, and digital monitoring of customer profiles.
The cost-to-income ratio remained well under control, even as the company continued to invest heavily in technology, digital infrastructure, and brand partnerships.
📊 Bajaj Finance Q2 FY2025 Performance Summary
| Parameter | Q2 FY2025 | Q2 FY2024 | YoY Change |
|---|---|---|---|
| Net Profit | ₹4,948 crore | ₹4,014 crore | +23% |
| Total Income | ₹14,744 crore | ₹12,367 crore | +19% |
| Net Interest Income (NII) | ₹9,760 crore | ₹8,469 crore | +15% |
| Loan Book (Assets Under Management) | ₹3.33 lakh crore | ₹2.90 lakh crore | +15% |
| New Loans Booked | 8.7 million | 7.8 million | +12% |
| Customer Franchise | 8.3 crore | 7.4 crore | +12% |
| Gross NPA (Non-Performing Assets) | 0.88% | 0.91% | Improved |
| Net NPA | 0.33% | 0.34% | Stable |
| Capital Adequacy Ratio (CAR) | 23.7% | 24.4% | Slight Dip |
| Digital Loan Share | 56% | 48% | Rising Trend |
| EPS (Earnings Per Share) | ₹81.3 | ₹66.4 | +22% |
Digital Transformation Driving Growth
Bajaj Finance’s ongoing digital transformation continues to be a major growth catalyst. The company’s mobile app ecosystem and digital EMI card services have enhanced customer engagement, making loan processing faster and more accessible.
The company added that over 70% of new loan originations in the quarter were done through digital channels — a clear indication of its tech-first approach. Its ‘Bajaj Finserv App’ now serves as a one-stop platform for EMI payments, credit applications, insurance, and investment products.
Chairman and Managing Director Rajeev Jain said, “The second quarter results reflect the strength of our diversified business model and our ability to adapt to changing consumer behavior. We continue to see strong growth in consumer and SME lending, driven by improved purchasing power and economic stability.”
Sector Outlook and Market Position
The broader NBFC sector has witnessed steady recovery in FY2025, aided by moderating interest rates, robust consumption demand, and improved liquidity. Bajaj Finance, with its well-diversified loan portfolio and strong brand recall, remains one of the top-performing companies in the financial services sector.
Market experts believe that Bajaj Finance’s continued investment in data analytics, AI-driven credit scoring, and customer experience will sustain its competitive edge. The company is expected to benefit from India’s growing middle class and rising adoption of digital financial products.
Suresh Ganapathy, a banking analyst at Macquarie Capital, noted, “Bajaj Finance’s performance shows resilience in a challenging macro environment. The company’s ability to maintain asset quality and expand digitally positions it for long-term sustainable growth.”
Outlook for the Coming Quarters
Going forward, Bajaj Finance aims to expand its footprint further into Tier-III and Tier-IV cities, targeting new-to-credit customers through its digital ecosystem. With the festive season continuing into Q3, loan disbursements are expected to remain strong.
The management also expects credit demand from the automobile, consumer electronics, and SME segments to stay buoyant. The company will continue to focus on maintaining balance sheet strength and risk-adjusted returns amid global uncertainties.
Bajaj Finance’s Q2 performance underscores its strong fundamentals and adaptive strategy. The 23% rise in net profit to ₹4,948 crore reflects not only its operational excellence but also India’s growing appetite for consumer credit. As one of the most trusted NBFCs, Bajaj Finance remains at the forefront of India’s financial inclusion story — blending technology, trust, and transformation to drive the next phase of growth in the country’s credit landscape.
(Economy India)
