Bajaj Finserv profit rises 25.40% YoY, but slips sequentially
Revenue growth outpaced costs year on year, while higher sequential interest and tax costs offset operating-profit growth.
Filed 03 Nov 2026, 12:48 IST · Bajaj Finserv Ltd (BAJAJFINSV)
Key takeaways
- Consolidated net profit rose 25.40% year on year as revenue grew 16.08% and expenses grew 10.94%.
- Sequential net profit fell 5.47% because expenses grew faster than revenue, while interest cost rose 8.29% and the tax rate increased 1.34 percentage points.
- Operating margin recovered 2.76 percentage points year on year to 40.33%, but remained 10.27 percentage points below the 50.6% median of 79 reporting financial-services peers.
Price around the results
Year-on-year growth stayed broad-based
Bajaj Finserv reported consolidated net profit of Rs 5,952.01 cr, up 25.40% year on year, as revenue grew 16.08% to Rs 43,415.65 cr. Expenses increased 10.94%, slower than revenue, lifting operating profit growth to 24.62%. Other income contributed only 0.04% of profit before tax, so reported profit was not materially supported by non-operating income.
Sequential margin slipped as costs and interest rose
Revenue increased 3.28% sequentially, but expenses grew 4.06%, narrowing operating margin by 0.45 percentage points. Interest expense rose 8.29%, while the tax rate increased 1.34 percentage points to 30.85%; profit before tax consequently fell 3.63% and net profit fell 5.47%. The higher tax rate did not flatter the sequential earnings outcome.
Margin recovery continues, but trails sector peers
Operating margin fell from 40.39% in Q1FY26 to 37.57% in Q2FY26 and 34.92% in Q3FY26, before recovering to 37.70% in Q4FY26 and 40.78% in Q1FY27. The current 40.33% marks a sequential step back after that recovery and is 10.27 percentage points below the 50.6% median among 79 financial-services peers that have reported.
Customer additions and new businesses broaden the story
Management said Bajaj Finance added 44 lakh new customers during the quarter. The presentation said Bajaj Broking is setting up a wealth-management business, while Bajaj Finserv is developing a digital BFSI marketplace and BFSI-focused technology services. Management also said Bajaj General's crop segment declined 21.3% because of weak pricing, and estimated FY2027 annualised ROE at approximately 16.2%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹43,416 cr | ₹42,037 cr | +3.28% | +16.08% |
| Other income | ₹4 cr | ₹5 cr | -27.01% | +16.56% |
| Expenses | ₹25,906 cr | ₹24,896 cr | +4.06% | +10.94% |
| Operating profit | ₹17,509 cr | ₹17,141 cr | +2.15% | +24.62% |
| Operating margin (%) | 40.33% | 40.78% | — | — |
| Interest | ₹8,483 cr | ₹7,834 cr | +8.29% | +22.92% |
| Depreciation | ₹423 cr | ₹380 cr | +11.33% | +29.19% |
| Profit before tax | ₹8,608 cr | ₹8,932 cr | -3.63% | +26.12% |
| Tax | ₹2,656 cr | ₹2,636 cr | +0.76% | +27.75% |
| Net profit | ₹5,952 cr | ₹6,297 cr | -5.47% | +25.40% |
| EPS (₹) | ₹17.22 | ₹19.60 | -12.14% | +22.13% |
Operating margin of 40.33% compares with a Financial Services sector median of 50.60% across 79 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Bajaj Finance added 44 lakh new customers during the quarter.
Guidance & outlook
- Bajaj General estimates FY2027 annualised ROE at approximately 16.2%.
Expansion
- Bajaj Broking is setting up a wealth management business.
New initiatives
- Bajaj Finserv is developing a digital BFSI marketplace called Bajaj Market place.
- Bajaj Finserv is developing BFSI-focused technology services.
Problems & risks
- Bajaj General's crop segment declined 21.3% because of weak pricing.
What to watch
- Whether operating margin holds above 40.33% after the 0.45 percentage-point sequential decline.
- The next quarter's interest expense growth against the current 8.29% sequential increase.
- Whether new-customer additions remain near the 44 lakh reported this quarter.