Margin rebounds 2.78 points as Bajaj Finserv profit rises 19.66% QoQ
Consolidated expenses fell faster than revenue sequentially, while higher interest and tax costs diluted the year-on-year profit gain.
Filed 30 Apr 2026, 14:14 IST · Bajaj Finserv Ltd (BAJAJFINSV)
Key takeaways
- Consolidated net profit rose 19.66% sequentially to Rs 5,226.26 cr as operating margin recovered by 2.78 percentage points.
- Year-on-year profit growth was limited to 9.88% because interest expense increased 14.00% and the tax rate rose 3.80 percentage points.
- The stock fell 0.96% on the results day, compared with a 0.52% median absolute move after the previous eight results.
Price around the results
Sequential margin recovery offsets lower revenue
Bajaj Finserv's consolidated revenue fell 3.06% sequentially, but expenses declined 7.19%, allowing operating profit to increase 4.65%. The resulting 2.78-percentage-point margin improvement helped pre-tax profit rise 16.90% and net profit rise 19.66%. Other income contributed only 0.37% of pre-tax profit, so the quarter's profit increase was not materially driven by non-operating income.
Interest and tax costs restrained year-on-year earnings
Revenue grew 5.19% year on year while expenses increased only 0.48%, lifting operating margin by 2.92 percentage points. However, interest expense rose 14.00%, and the tax rate increased by 3.80 percentage points to 24.56%, which kept net profit growth at 9.88% despite 15.42% growth in pre-tax profit. The margin has now recovered from 34.92% in Q3FY26, after falling from 40.39% in Q1FY26 to 37.57% in Q2FY26.
Margin remains below the Financial Services peer median
Bajaj Finserv's 37.70% operating margin was 21.71 percentage points below the 59.41% median among 52 Financial Services companies that had reported the quarter. It ranked 16th from the bottom in that comparison. The year-on-year margin improvement therefore came alongside a below-median sector position.
Management points to wider distribution and new revenue models
Management said Bajaj Finance booked 1.29 crore new loans in Q4FY26, up from 1.07 crore a year earlier, while Bajaj Finserv Health processed about 65 lakh healthcare transactions. The company said its presence had expanded to more than 4,000 cities, and management said some revenue structures had shifted to trail revenue to improve stability and predictability. Management also said it estimates FY2026 annualised ROE at approximately 18.5% and expects digital and traditional lending to reach a 50:50 mix by FY2030.
Result-day fall was followed by an unusual five-session gain
The stock fell 0.96% on the results day, despite opening 0.74% higher, and was down 0.22% relative to the market at that point. It gained 3.07% over five sessions, compared with a history of six declines and two gains after the previous eight results. Both the initial fall and the subsequent five-session move were larger than the 0.52% median absolute reaction in that history.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹38,494 cr | ₹39,708 cr | -3.06% | +5.19% |
| Other income | ₹25 cr | ₹-378 cr | — | +150.40% |
| Expenses | ₹23,983 cr | ₹25,842 cr | -7.19% | +0.48% |
| Operating profit | ₹14,511 cr | ₹13,866 cr | +4.65% | +14.01% |
| Operating margin (%) | 37.70% | 34.92% | — | — |
| Interest | ₹7,291 cr | ₹7,232 cr | +0.81% | +14.00% |
| Depreciation | ₹317 cr | ₹330 cr | -3.89% | -6.62% |
| Profit before tax | ₹6,928 cr | ₹5,926 cr | +16.90% | +15.42% |
| Tax | ₹1,702 cr | ₹1,559 cr | +9.18% | +36.58% |
| Net profit | ₹5,226 cr | ₹4,368 cr | +19.66% | +9.88% |
| EPS (₹) | ₹15.90 | ₹14.00 | +13.57% | +5.30% |
Operating margin of 37.70% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.96% | -0.22% |
| Next session | +0.35% | — |
| 5 sessions | +3.07% | +3.07% |
| 15 sessions | +0.10% | — |
| 30 sessions | -0.79% | — |
Volume on the results session was 1.86× its 20-day average.
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 booked 1.29 crore new loans in Q4 FY2026, up from 1.07 crore a year earlier.
- Bajaj Finserv Health processed about 65 lakh healthcare transactions during the quarter.
Guidance & outlook
- The company estimates FY2026 annualised ROE at approximately 18.5%.
- Digital lending is expected to cross a ₹11,310 crore opportunity by FY2030.
- The retail credit opportunity is stated as exceeding ₹27,840 crore by FY2030.
- The mix of digital and traditional lending is expected to reach 50:50 by FY2030.
Expansion
- The group has expanded its presence to more than 4,000 cities.
- Bajaj Technology Services has entered GCCs and the Middle East and is poised to enter US markets.
- Bajaj Markets offers a choice from more than 55 lenders.
New initiatives
- Bajaj Finserv Direct is implementing a planned SFDC system migration for frontline sales.
- Some revenue structures have shifted to a trail-revenue model to improve future stability and predictability.
- The group has strategic tie-ups with Airtel and SFDC.
Competition
- Bajaj General states that its solvency is among the highest in the market.
Problems & risks
- General insurance PAT remained largely flat due to elevated government health claims experience and crop-business degrowth.
- Bajaj Finserv Direct revenue declined during the quarter because of the planned SFDC system migration.
What to watch
- Whether operating margin holds above 37.70% after the sequential recovery.
- Whether interest expense growth moderates from 14.00% year on year.
- Whether the tax rate moves below 24.56% after rising 3.80 percentage points year on year.