Bajaj Finance Q2 FY27 Results (NSE: BAJFINANCE)
Signal: Earnings grew
The read
The trajectory improved in Q2FY27: total income growth accelerated to +23.0% YoY from +18.6% in Q1FY27, while PAT growth reached +30.2% versus +27.1% in Q1FY27; the key quality signal is impairment growth of only +4.6% alongside GNPA improvement to 1.33% from 1.59% YoY, although negative H1 operating cash flow of ₹45,209.99 crore reflects continued balance-sheet investment in loans.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹20,919.4 Cr | +23.0% | +5.6% |
| Net profit | ₹5,536.1 Cr | +30.2% | |
| EPS | ₹8.9 | +30.1% | |
| EBIT margin | 0% |
P&L walk
Total income increased to ₹20,919.40 crore, +23.0% YoY and +5.6% QoQ, while PAT rose faster to ₹5,536.10 crore, +30.2% YoY, as impairment growth was contained at +4.6% and net profit margin expanded to 26.46% from 25.00%.
Key positives
- PAT increased to ₹5,536.10 crore, +30.2% YoY, ahead of total-income growth of +23.0%.
- Impairment on financial instruments rose only 4.6% YoY to ₹2,130.51 crore, while GNPA improved to 1.33% from 1.59% YoY and NNPA to 0.53% from 0.77%.
- Net profit margin expanded to 26.46% from 25.00% YoY, a 146bps improvement.
- Basic EPS rose 30.1% YoY to ₹8.90, tracking PAT growth closely.
Key concerns
- Finance costs increased 22.0% YoY to ₹6,398.84 crore, limiting operating spread expansion as the funding base scales.
- H1 operating cash flow was negative at ₹45,209.99 crore versus negative ₹14,574.02 crore in H1FY26, primarily reflecting a ₹60,851.27 crore increase in loans.
- Employee benefits expense rose 25.6% YoY to ₹2,494.95 crore, faster than total-income growth of 23.0%.
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