Bajaj Finance Q2 Results: Profit tumbles 24% YoY even as interest income grows — 5 key takeaways for investors

Bajaj Finance Q2 Results: Non-banking finance company, Bajaj Finance, on Monday, November 10, announced a decline in its quarterly profit for the second quarter of the fiscal 2025-26 (FY26).

Bajaj Finance posted a standalone net profit of ₹4250.77 crore in Q2 FY26 as against ₹5,613.71 crore, recording a 24% year-on-year decline. This is even as its net interest income for the quarter under review came in at ₹9,724.98 crore, a growth of 20.7% over ₹8,053.88 crore posted in the same period a year ago.

Bajaj Finance Q2 Results: 5 key takeaways

Here are five key takeaways for investors from Bajaj Finance's Q2 results:

1. Why did profit decline in Q2?

Bajaj Finance posted a lower profit YoY as the last year's figure included an exceptional gain of ₹2,544 crore on account of the sale of equity shares of BHFL pursuant to IPO of Bajaj Housing Finance Limited, and amid a rise in provisions of 17% YoY during the quarter under review. The fall in PAT comes despite an increase in NII on the back of a robust loan book.

2. Slight decline in asset quality

The asset quality declined marginally during the July-September period as gross NPA (non-performing assets) and net NPA as of 30 September 2025 stood at 1.59% and 0.77% respectively, as against 1.33% and 0.58% as of 30 September 2024. The company has a provisioning coverage ratio of 52% on stage 3 assets.

Overall, the loan losses and provisions jumped 17% YoY to ₹2218 crore.

3. Steady pre-provision operating performance

Bajaj Finance posted a steady pre-provision operating profit (PPOP), as it rose 21% in Q2 FY26 to ₹7,921 crore from ₹6,550 crore in Q2 FY25.

PPOP is a measure of a financial institution's profitability before it sets aside funds for potential bad debts. A healthy PPOP indicates that the lender's main operations are profitable.

Meanwhile, Bajaj Finance's profit before exceptional gain and tax (PBIT) increased by 23% to ₹5,703 crore during the quarter under review from ₹4,647 crore in the corresponding period last year.

4. Strong AUM growth

The assets under management (AUM) rose 23% YoY to ₹3,38,121 crore as of September 30, 2025, compared to ₹2,75,043 crore a year earlier.

5. Subsidiaries post a healthy performance

Bajaj Finance's two subsidiaries also posted a good set of numbers. Bajaj Housing Finance saw an 18% YoY rise in PAT to ₹643 crore; meanwhile, Bajaj Financial Securities' PAT jumped 27% YoY to ₹47 crore.

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