Bajaj Finance Q2 preview: Revenue might bounce 29%, NII 24% as robust mortgage development lifts earnings
The non-banking monetary firm is more likely to report a internet revenue of round Rs 6,383 crore for the July-September quarter, in contrast with Rs 4,948 crore within the corresponding interval final 12 months, based mostly on the brokerage consensus.
Web curiosity revenue (NII), the distinction between curiosity earned and curiosity paid, is predicted to develop 24% YoY to Rs 13,373 crore from Rs 10,785 crore a 12 months earlier.
Bajaj Finance is scheduled to announce its second-quarter outcomes on Monday, October 19.
The earnings come after the lender reported robust development in belongings beneath administration (AUM) in its provisional enterprise replace earlier this month, suggesting continued demand throughout its lending companies.
AUM elevated 26.5% year-on-year to roughly Rs 5.85 lakh crore as of September 30, 2026, in contrast with Rs 4.62 lakh crore a 12 months earlier. The corporate added round Rs 37,800 crore to its mortgage e book in the course of the quarter.
Its buyer base expanded to 12.89 crore from 11.06 crore a 12 months earlier, whereas new loans booked rose 11% to 1.35 crore.Robust AUM development to assist earnings
Brokerages count on Bajaj Finance’s increasing mortgage portfolio to stay the first driver of earnings development, with newer companies contributing to the momentum.
Motilal Oswal had projected AUM development of 25% YoY and 5.6% sequentially for the September quarter. The corporate’s provisional AUM development of 26.5% got here in forward of that expectation. Nomura additionally anticipated robust AUM development of about 25% YoY, indicating confidence within the lender’s capability to maintain demand throughout its financing companies.
PL Capital highlighted the corporate’s 26.5% development, pointing to rising alternatives in companies comparable to gold loans and microfinance.
The growth comes as Bajaj Finance seems to be to diversify its lending portfolio and deepen its presence in newer segments alongside its established shopper finance, private mortgage and industrial lending companies. The corporate’s deposit e book stood at Rs 69,750 crore on the finish of September.
Margins might face stress
Regardless of the wholesome mortgage development, analysts count on some moderation in lending margins as borrowing prices stay elevated. Motilal Oswal expects Bajaj Finance’s internet curiosity margin to say no by round 10 foundation factors sequentially to roughly 9.4%.
The brokerage mentioned administration’s commentary on the long run trajectory of margins and credit score prices could be among the many key components to observe when the corporate publicizes its outcomes. PL Capital additionally expects stress on margins, citing a rise in the price of funds following an increase in bond yields.
The brokerage expects some moderation in internet curiosity margins throughout FY27, at the same time as robust mortgage development helps curiosity revenue. Larger funding prices can have an effect on the profitability of non-bank lenders, significantly when will increase in borrowing charges can’t be instantly handed on to clients.
Credit score prices and asset high quality in focus
Asset high quality will probably be one other intently watched space, as analysts see credit score prices to stay broadly secure in the course of the September quarter. Motilal Oswal expects credit score prices, measured as a share of AUM, to stay regular sequentially at roughly 1.55%.
Nomura sees a modest enchancment, projecting a seven-basis-point sequential moderation in credit score prices.
PL Capital, in the meantime, estimates credit score prices at round 1.6%, broadly in step with the opposite brokerage forecasts. The comparatively secure credit-cost expectations recommend that analysts anticipate continued development in lending with out a substantial deterioration in asset high quality.
Nevertheless, the efficiency of unsecured shopper loans, microfinance and different higher-yielding segments will stay essential as the corporate expands its portfolio.
Disclosure: This text has been written by Podishetti Akash, who will not be a SEBI-registered Analysis Analyst or an Funding Adviser. Podishetti Akash and his ‘relative(s)’ (as outlined beneath Part 2(77) of the Firms Act, 2013) don’t maintain any monetary curiosity within the firms talked about on this article as of the date of publication. The views/suggestions talked about on this article, wherever relevant, are these of the respective SEBI-registered Analysis Analyst/brokerage and have been reproduced/reported with due attribution. They shouldn’t be construed because the views or suggestions of The Financial Occasions Digital or the journalist. Readers are suggested to contemplate the unique analysis report and make their funding selections based mostly on their very own evaluation. Brokerage disclosures right here.
