Bajaj Finance Limited – Q4FY25 and FY25 Financial Results Update

Delivering Consistent Growth Amidst Strategic Realignments

📈 Key Highlights – Q4FY25 and FY25

• AUM rose by 26% YoY to ₹416,661 crore as of 31 March 2025.
  
  

• New Loans Booked: 10.70 million in Q4FY25 (+36% YoY); 43.42 million in FY25 (+20% YoY).
  
  

• Customer Franchise: Expanded to 101.82 million customers.
  
  

• Consolidated Revenue:
  
  

• Q4FY25: ₹15,808 crore (+24% YoY)
  
  

• FY25: ₹59,420 crore (+26% YoY)
  
  

• Segmental Revenue Growth: Led by strong gains in B2B, B2C, SME, Rural Lending, and Securities businesses.
  
  

• GNPA Ratio: Slight uptick to 0.96% as of Q4FY25 (vs 0.85% in Q4FY24) but cooled off 1.12% during 9Mfy25 Results.
  
  

• Net NPA stood at 0.44% in Q4FY25 (vs 0.37% in Q4FY24).
  
  

• Profit Margins: Strong profitability maintained despite ECL adjustments.
  
  

• Consolidated PAT:
  
  

• Q4FY25: ₹4,546 crore (+19% YoY)
  
  

• FY25: ₹16,779 crore (+16% YoY)
  
  

📊 Financial Performance Deep-Dive

🏦 Solvency, Liquidity, and Profitability Ratios (At CMP ₹9,089)

• Capital Adequacy Ratio: 21.93%
  
  

• Tier 1 Capital: 21.09%
  
  

• Liquidity Buffer: ₹18,754 crore as of 31 March 2025.
  
  

• Cost of Funds: 7.99% (expected to reduce to 7.75%-7.85% by FY26-end).
  
  

• Loan Loss to Average AUM:
  
  

• Reported: 2.33%
  
  

• Adjusted (excluding ECL): 1.97%
  
  

🛠 Corporate Actions Announced

• Special Interim Dividend: ₹12 per share (600%) (Record Date: 9th May 2025).
  
  

• Final Dividend: ₹44 per share (2200%) (Record Date: 30th May 2025).
  
  

• Stock Split: 1:2 (From ₹2 FV to ₹1 FV per share).
  
  

• Bonus Issue: 4:1 (4 Bonus Shares for every 1 share held).
  
  

• Capital Expansion: Increase of authorised share capital to ₹10,000 crore.
  
  

📍 Industry KPIs and Strategic Positioning

• S&P Global Ratings upgraded long-term outlook to Positive.
  
  

• Moody’s Ratings assigned Baa3/P-3 issuer rating with Stable outlook.
  
  

• Deposits grew 19% YoY to ₹71,403 crore, constituting 20% of total borrowings.
  
  

• Digital Transformation: Bajaj Finserv App reached 70.57 million users.
  
  

• Omnichannel Expansion: 4,263 locations; 232,000+ distribution points.
  
  

🔮 Near-Term and Long-Term Outlook

Management Assessment: Strategic goals on customer additions, AUM growth, and operational optimization have been met. Credit cost and margin compression remain areas of strategic focus for FY26.

📌 Conclusion

Bajaj Finance Limited continues to demonstrate a resilient growth model, backed by superior asset quality, strong customer acquisitions, and strategic foresight in digital and operational excellence. The company remains well-poised for sustainable, profitable growth with robust dividend payouts, enhanced shareholder value through bonus and stock split, and a strong capital adequacy position.

CMP of ₹9,089 reflects a fair premium considering the company’s industry-leading RoE, growth momentum, and strong risk management practices.