Q2 2026 Bajaj Finance Ltd Earnings Call Transcript
Key Points
- Bajaj Finance Ltd (BOM:500034) reported a 24% growth in assets under management (AUM), reaching 462,261 crores, driven by secular growth across various business lines.
- The company added 4.13 million new customers in Q2, expanding its customer franchise to 110.64 million, with expectations to add 16 to 17 million new customers in FY26.
- Operating efficiencies improved, with OpEx to NTI ratio decreasing to 32.6% from 33.2% in the previous year, aided by AI implementation across business lines.
- The festive season performance was strong, with a record 6.3 million loans disbursed, marking a 27% increase in volume and 29% in value year-on-year.
- Bajaj Finance Ltd (BOM:500034) is advancing its AI and technology initiatives, with significant progress in AI-powered service bots and process automation, expected to enhance cost and productivity benefits over the next 12 to 18 months.
- Credit costs remained elevated in Q2, with expectations for full-year credit costs to be at the upper end of the guided range of 1.85% to 1.95%.
- MSME growth moderated to 18% as part of a risk-first approach, with the company cutting unsecured MSME volumes by 25% due to incipient stress.
- The captive two-wheeler and three-wheeler business, contributing to 1.5% of AUM, accounted for 9% of overall loan losses, impacting asset quality.
- The company revised its growth guidance for FY26 to 22-23%, down from the earlier 24-25%, due to risk actions in the MSME business.
- Stage 3 assets saw an increase, attributed to the peculiar situation of additional days in Q2, with MSME and two-wheeler segments contributing to the rise.
Ladies and gentlemen, good evening and welcome to Bajaj Finance Limited Q2 FY26 earnings conference call co-hosted by JP Morgan.
This event is not for the members of the press.
If you're a member of the press, please disconnect and reach out separately.
Please note that this call and your questions will be recorded, and the recording will be made publicly available.
By participating in this event, you consent to such recording, distribution, and publication.
All participant lines are in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during this conference call, please signal an operator by pressing 0 or near touchstone phone.
I'll now hand the conffence over to Mr. Annu Singhla from JP Morgan.
Thank you, and over to you, sir.
Thank you, Neerav. Good evening, everyone. This is Anu Singhla, from JPMorgan.
Thank you very much for joining us
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