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Bajaj Finance Q4 FY26 Analysis: Milestone AUM Growth & Robust Topline Performance

Lesson 279/323 | Study Time: 20 Min

Course: Quarterly Result Updates & Analysis

Bajaj Finance Q4 FY26 Analysis: Milestone AUM Growth & Robust Topline Performance

Published by: Quarterly Results Update - Corporate Investment Advisory

Bajaj Finance (BAJFINANCE) has delivered a stellar performance for the quarter ended March 31, 2026, characterized by significant topline growth and the crossing of a historic AUM milestone. The company continues to demonstrate its ability to scale while navigating a complex macroeconomic landscape.

The Snapshot

Metric	Details
Company Name	Bajaj Finance Limited
Current Market Price (CMP)	₹950
Market Cap	~₹58,000 Cr
Sector	NBFC - Diversified
Quick Verdict	Strong Buy / Deep Value - Historically low valuation presents a significant margin of safety.

The 'Wow' Factor

The 5-Lakh Crore Club: Consolidated AUM hit a historic milestone of ₹5,09,975 Crore, proving that Bajaj Finance can maintain 22% growth even at a massive scale.
Loan Velocity Record: The company booked a staggering 52.45 Million loans in a single year (FY26)—that's nearly 1.43 lakh loans every single day.
Massive Customer Magnet: Added 14.5 Million new customers in FY26, bringing the total franchise to nearly 120 Million. To put that in perspective, that is roughly 8% of India's total population.
Profitability Powerhouse: Even with aggressive digital investments, the company delivered a PAT of ₹5,553 Crore for the quarter, maintaining a high-quality ROE of ~20%.

Financial Performance (Consolidated Audited Results)

The following table reflects the audited figures and core operational earnings power (EBITDA equivalent).

Particulars (₹ Cr)	Q4 FY26	Q4 FY25	YoY %
Total Income	21,606.50	18,306.34	18.0%
Net Total Income (Revenue net of Interest Exp)	14,209.00	11,755.00	20.9%
EBITDA (Core PPOP)	9,408.00	7,775.00	21.0%
Profit Before Tax (PBT)	7,409.84	5,647.38	31.2%
Profit After Tax (PAT)	5,553.30	4,545.57	22.2%
Total Income (Full Year FY26)	81,989.50	68,846.98	19.1%

Key Business & Operational Highlights

AUM Growth: Consolidated Assets Under Management (AUM) grew by 22% YoY to reach ₹5,09,975 Crore.
Customer Franchise: The customer base expanded to 119.33 Million as of March 31, 2026, a 17% increase from the previous year.
Loan Velocity: The company booked 12.89 Million new loans in Q4 FY26 alone, bringing the full-year total to a record 52.45 Million.
Asset Quality: Gross NPA and Net NPA stood at 1.01% and 0.41% respectively. While GNPA saw a slight marginal uptick YoY, the Net NPA improved from 0.44% in the previous year.

Management Commentary & Strategic Outlook

Management highlighted a "risk-first" approach during the quarter, particularly in the MSME and rural B2C segments, to prioritize balance sheet resilience over aggressive growth.

Resilience Strategy: Vice Chairman Rajeev Jain emphasized "bullet-proofing" the business against geopolitical shocks and macro volatility.
Digital Transformation: The company continues to accelerate its "FINAI" journey, deploying over 100 AI use cases to drive efficiency and customer engagement.
FY27 Guidance: Management estimates AUM growth for the next fiscal year to be in the range of 22-24%.

Valuation & Investor Takeaway

At current levels, Bajaj Finance remains a premier play on the Indian financial services sector. The consistent 20%+ AUM growth trajectory combined with best-in-class ROE (~20% annualized for Q4) justifies its premium valuation.

Advisory Verdict: The significant jump in Total Income to over ₹21,600 Cr in Q4 confirms that the company's revenue engines (interest income and fee-based income) are firing on all cylinders. Investors should monitor the NIM trajectory in FY27 as cost of funds stabilizes.

FairValue:

https://docs.google.com/spreadsheets/d/e/2PACX-1vQEcgCWdjB7w_eXoZCc4qryuuiAZIeSZvTjBNyspqVwlEygzfISRv8lCejAYVd-TA/pubhtml?gid=763412356&single=true

Financial Disclosure: This report is for educational purposes only.This report is prepared for SEBI Registered Investment Advisers.

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Piyush Patel

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