Bajaj Finance Q1 FY27 Results (NSE: BAJFINANCE)
Signal: Earnings grew
The read
Bajaj Finance delivered a strong Q1FY27 with consolidated PAT of ₹6,081 Cr (+27.6% YoY), driven by 19.6% revenue growth, stable NIM expansion (+40bps), and near-flat provisions (+1.2% YoY) despite loan book growth. Asset quality improved with GNPA at 1.20% (vs 1.28% a year ago) and Net NPA at 0.49% (vs 0.63%). Subsidiary BHFL contributed ₹765 Cr PAT (12.6% of group profit), reinforcing the consolidated beat. This is the 5th consecutive quarter of PAT growth acceleration (YoY: +27.6% vs +22% in Q4FY26).
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹23,166.42 Cr | +19.6% | +7.1% |
| EBIT | ₹8,149 Cr | +28.0% | |
| Net profit | ₹6,080.6 Cr | +27.6% | |
| EPS | ₹9.6 | +26.8% | |
| EBIT margin | 35.2% |
P&L walk
Consolidated PAT grew 27.6% YoY to ₹6,081 Cr, driven by 19.6% revenue growth and lower provision normalization; subsidiary Bajaj Housing Finance contributed ₹765 Cr PAT, underpinning the consolidated beat.
Segments
No segment disclosure; the company operates as a single financing segment in India.
Key positives
- Consolidated PAT grew 27.6% YoY to ₹6,081 Cr, accelerating from +16.5% in Q3FY26 and +22% in Q4FY26.
- Net interest margin expanded 40bps YoY to ~10.2% as finance costs grew only 14.8% YoY vs 19.6% revenue growth.
- Asset quality improved: GNPA ratio 1.20% (down 8bps YoY), Net NPA ratio 0.49% (down 14bps YoY), indicating improving credit profile.
- Provisions nearly flat (+1.2% YoY) despite loan book expansion, reflecting lower slippages and improved recoveries.
- Subsidiary Bajaj Housing Finance contributed ₹765 Cr PAT (12.6% of group profit), showing strong performance.
Key concerns
- Employee costs grew 25.8% YoY, outpacing revenue growth of 19.6% YoY, impacting operating leverage.
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