Q1 2026 Bajaj Finance Ltd Earnings Call Transcript
Key Points
- Bajaj Finance Ltd (BOM:500034) reported a strong start to FY '26 with a 25% growth in Assets Under Management (AUM), reaching INR 4,41,450 crores.
- The company booked a record 13.5 million loans and added 4.7 million new customers in Q1, expanding its customer franchise to 106.5 million.
- Profit Before Tax (PBT) grew by 21% and Profit After Tax (PAT) increased by 22%, with a Return on Equity (ROE) of 19%.
- The company has started deploying AI capabilities to improve productivity, indicating a focus on technological advancement.
- Bajaj Finance Ltd (BOM:500034) maintained a strong capital adequacy with Tier 1 capital at 21.19%.
- Credit costs remained elevated, particularly in the two and three-wheeler business, which is being wound down.
- The MSME segment showed signs of strain, with Stage 2 assets increasing due to restructuring options offered to mitigate short-term cash flow issues.
- Employee attrition was higher at 16.9%, a 100 basis point increase year-on-year.
- The company anticipates a higher reliance on ECB and bank borrowings due to a potential decrease in deposit contributions to the balance sheet.
- There is a noted slowdown in the MSME business, which is expected to grow more slowly in the current year, impacting overall growth momentum.
Ladies and gentlemen, good day, and welcome to the Q1 FY '26 earnings conference call for Bajaj Finance Limited. (Operator Instructions). Please note that this conference is being recorded.
I now hand the conference over to Mr. Ajit Kumar from JM Financial. Thank you, and over to you, sir.
Thank you, Davin. Good evening, everyone. This is Ajit Kumar from JM Financial. Welcome to 1Q FY '26 Earnings Conference Call of Bajaj Finance Limited -- on behalf of Gem Financial, I would like to thank the management of Bajaj Finance for giving us this opportunity to host the call. From a management team today, we have Mr.
Rajeev Jain, Vice Chairman and Managing Director; Mr. Sandeep Jain, Chief Operating Officer and Chief Financial Officer; and other senior members of the management team. We will have opening comments from the management team post which we will open the floor for Q&A.
With that, I would like to transfer the call to Rajeev sir for his opening remarks. Over
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