Bajaj Finance closed FY26 with its AUM crossing the ₹5 lakh crore milestone — a 22.4% YoY expansion — while PAT grew 26.7%, as the NBFC delivered strong operational performance across all business segments and outlined a cautiously optimistic FY27 roadmap.
Headline Numbers
| Metric | Q4 FY26 | YoY Change |
|---|---|---|
| AUM | ₹5,10,000 cr (₹5.1L cr) | +22.4% |
| PAT growth | +26.7% YoY | — |
| ROA | 4.6% | — |
| ROE | 20% | — |
| Cost of Funds | 7.41% | -4 bps QoQ |
| New Customers Added | 39.3 lakh | — |
| Total Customer Franchise | 11.93 crore | — |
What Drove the Results
- Broad-based AUM growth: All major business verticals — consumer, SME, commercial — contributed to the 22.4% YoY AUM expansion. Record 3.93 million new customers were added in Q4 alone, with management expecting to cross 5 million monthly loan disbursals for the first time.
- New businesses accelerating: Gold loan AUM grew 115% YoY and now accounts for 3.5% of total AUM (targeting 5% by FY27). Bajaj Financial Securities (BFSL) AUM grew 77%. These high-growth segments add structural diversification to the loan book.
- Credit cost tailwinds on track: The captive 2-wheeler portfolio (a legacy stress pool) is winding down — targeted below ₹1,500 crore by September 2026. MSME business normalization is expected from H2 FY27. Both will reduce credit costs from the current 1.65% towards the guided 1.45-1.60% range.
- AI transformation underway: Management highlighted AI-driven automation as a key lever for opex efficiency, guiding 25-40 bps improvement in opex-to-NTI ratio in FY27. Core opex to NTI already improved 10 bps YoY in FY26.
What Management Said
Management struck a confident but deliberately measured tone. On FY27 outlook, they stated the guidance of 20-24% AUM growth is "contingent on easing geopolitical tensions" — specifically citing West Asia conflict and the Indo-Pakistan situation as macro risks. The phrase "bullet-proofing the balance sheet" was used to describe the approach to credit provisioning. On the long-term, management reiterated ambition to be among India's top 5-6 financial services lenders within 5-7 years, targeting 2x system credit growth with 20-22% ROE sustaining. AI transformation was described as making "compounding easier" — not just a cost story, but a growth enabler.
Key Tailwinds and Risks
Tailwinds:
- Credit cost improvement as 2-wheeler wind-down and MSME normalization play out in FY27
- Strong consumer momentum (5 million monthly loan milestone imminent)
- AI-driven operating leverage expected to improve margins 25-40 bps
- Market share gained 25 bps to 2.5% of total Indian credit outstanding
Risks:
- Geopolitical tensions (West Asia, Indo-Pakistan, Iran-US) remain a stated contingency in FY27 guidance
- MSME business returning to double-digit growth is only expected from H2 FY27 — H1 may be subdued
StockMirror AI Signal Summary
| Signal | Reading |
|---|---|
| Overall Sentiment | Good |
| Management Confidence | High |
| Prepared Remarks | Good — confident operational narrative, positive FY27 roadmap |
| Q&A Sentiment | Good — direct and confident on credit cost guidance and competitive positioning |
| Revenue Growth | Expansion — 22.4% AUM growth, guided 20-24% for FY27 |
| Margin Direction | Expansion — ROA 4.6%, cost of funds improving, AI efficiency ahead |
For the complete 13-section AI analysis — management tone, earnings quality, outlook drivers, and analyst Q&A breakdown — visit Bajaj Finance's earnings page.
Key Takeaways
- AUM crossed ₹5.1 lakh crore in Q4 FY26 (22.4% YoY), with PAT up 26.7%
- FY27 guidance is 20-24% AUM growth, credit cost 1.45-1.60%, ROA 4.4-4.6%
- Gold loan (115% growth) and BFSL (77% growth) are fast-scaling new businesses
- Geopolitical uncertainty is the main declared contingency to the FY27 plan
- AI transformation is being positioned as both a cost and growth lever
Frequently Asked Questions
What is Bajaj Finance's market share in Indian credit? Bajaj Finance's market share in total Indian credit outstanding stood at 2.5% as of Q4 FY26, gaining 25 basis points during the year. The company's long-term target is to grow at 2x the system credit growth rate.
What was Bajaj Finance's cost of funds in Q4 FY26? Bajaj Finance's cost of funds improved 4 basis points QoQ to 7.41% in Q4 FY26. Management guided for some NIM moderation in FY27 but expects operating leverage from AI and efficiency initiatives to offset this at the ROA level.
How big is Bajaj Finance's gold loan business? Bajaj Finance's gold loan AUM grew 115% YoY in FY26 and contributes 3.5% of total AUM (₹5.1 lakh crore). The company expects this to reach 5% of total AUM by FY27, making gold loan one of its fastest-scaling new verticals.
Related: HDFC Bank Q4 FY26 Results · ICICI Bank Q4 FY26 Results · Jio Financial Services Q4 FY26
Disclaimer: This article is for informational purposes only and does not constitute investment advice. StockMirror's AI analysis is based on publicly available earnings transcripts and BSE/NSE filings. Please consult a SEBI-registered financial advisor before making investment decisions.