Bajaj Finserv Q1 FY27 Results (NSE: BAJAJFINSV)
Signal: Earnings grew
The read
Q1FY27 consolidated results show improving momentum: total income +19.1% YoY, PBT +24.0% YoY, and PAT +18.2% YoY. The key positive is life insurance turning profitable vs a loss just a quarter ago, while retail financing (Bajaj Finance) continued its robust 25%+ PBT growth. The only concerns are EPS growth lagging PAT (dilution from ESOP) and general insurance PBT declining 14.6% YoY. On a sequential basis, total income rebounded +9.2% from Q4FY26, and PBT surged +28.9% QoQ, reversing the QoQ decline seen in Q4.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹42,036.9 Cr | 19.1% | 9.2% |
| Net profit | ₹6,296.67 Cr | 18.2% | |
| EPS | ₹19.6 | 12.2% |
P&L walk
Consolidated total income ₹42,037 Cr, +19.1% YoY, driven by 18.4% growth in interest income (lending) and 16.1% growth in insurance premium; finance costs grew slower at +15.1%, aiding operating leverage; impairment on lending assets remained nearly flat (+1.2% YoY) despite loan growth, a positive credit quality signal; profit before tax surged +24.0% YoY to ₹8,932 Cr; net profit after minority grew +18.2% YoY to ₹6,297 Cr; EPS ₹19.60, +12.2% YoY, lagging PAT growth due to diluted equity from ESOP issuance.
Segments
Retail financing (Bajaj Finance) remains the profit engine with PBT of ₹8,115 Cr, +25.1% YoY, contributing 90.9% of consolidated PBT; life insurance swung from a loss of ₹138 Cr in Q4FY26 to a profit of ₹460 Cr in Q1FY27, lifting the insurance segment total PBT to ₹1,109 Cr (+22.1% YoY); general insurance PBT was ₹649 Cr, -14.6% YoY, a relative drag.
Key positives
- Life insurance segment PBT swung from a loss of ₹137.70 Cr in Q4FY26 to a profit of ₹459.95 Cr in Q1FY27, contributing to a 22.1% YoY rise in insurance segment PBT.
- Retail financing PBT grew 25.1% YoY to ₹8,114.93 Cr, the largest contributor to group profits.
- Impairment on lending assets remained nearly flat YoY at +1.2%, indicating controlled credit costs despite loan book expansion.
- Finance costs grew at 15.1% YoY, slower than revenue growth of 19.1%, reflecting stable borrowing costs and operating leverage.
Key concerns
- EPS growth of 12.2% YoY lagged PAT growth of 18.2% YoY due to dilution from 15,11,358 ESOP shares issued in the quarter.
- General insurance PBT declined 14.6% YoY to ₹649.48 Cr, a drag on the insurance segment.
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