Bajaj FinservBOM:532978 +0.78%82 ROA % is 1.34% as of Mar. 2026, which is 22% below its 10-year median of 1.71. GuruFocus rates BOM:532978 with a GF Score™ of 82/100 and a GF Value™ of ₹2,412.17 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 562 Diversified Financial Services companies, Bajaj Finserv ranks better than 59.61% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Bajaj Finserv's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹101,547 Mil.
Bajaj Finserv's average Total Assets over the quarter that ended in Mar. 2026 was ₹7,584,975 Mil. Therefore, Bajaj Finserv's annualized ROA % for the quarter that ended in Mar. 2026 was 1.34%.
The historical rank and industry rank for Bajaj Finserv's ROA % or its related term are showing as below:
BOM:532978'
s ROA % Range Over the Past 10 Years
Min: 1.39 Med: 1.71 Max: 1.91
Current: 1.39
During the past 13 years, Bajaj Finserv's highest ROA % was 1.91%. The lowest was 1.39%. And the median was 1.71%.
BOM:532978's ROA % is ranked better than 59.61% of 562
companies
in the Diversified Financial Services industry
Industry Median: 0.875
vs BOM:532978: 1.39
Bajaj Finserv (BOM:532978) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Bajaj Finserv ROA % Related Terms
Bajaj Finserv ROA % Historical Data
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The historical data trend for Bajaj Finserv's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Financial Conglomerates subindustry, Bajaj Finserv's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Bajaj Finserv ROA % vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, Bajaj Finserv's ROA % distribution charts can be found below:
* The bar in red indicates where Bajaj Finserv's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Bajaj Finserv (BOM:532978) has a ROA % of 1.34% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Bajaj Finserv and its competitors. This is 22% below median its historical median of 1.71. Over the past decade, Bajaj Finserv's ROA % has ranged from 1.39 to 1.91. According to the industry distribution chart, Bajaj Finserv ranks #227 out of 562 companies in the Diversified Financial Services industry, placing it in the top 40.4%.
Is Bajaj Finserv's ROA % too high?
Bajaj Finserv's current ROA % of 1.34% is 22% below median its 10-year median of 1.71. Over the past 10 years, this metric has ranged from a low of 1.39 to a high of 1.91. The Diversified Financial Services industry median ROA % is 0.88. Bajaj Finserv's value of 1.34% is 53.1% above this industry median. Based on the distribution chart, Bajaj Finserv ranks #227 out of 562 companies in the Diversified Financial Services industry, which is above the industry midpoint. Overall, Bajaj Finserv has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Bajaj Finserv's ROA % compare to VOYA and FRHC?
According to the Diversified Financial Services industry distribution chart, Bajaj Finserv ranks #227 out of 562 companies for ROA %. This puts Bajaj Finserv in the upper half of its industry. The industry median ROA % is 0.88. Bajaj Finserv's value of 1.34% is 53.1% above this benchmark. Historically, Bajaj Finserv's own ROA % has ranged from 1.39 to 1.91 over the past decade. While the company's 10-year median is 1.71 vs. the industry median of 0.88, Bajaj Finserv has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Diversified Financial Services company?
The median ROA % among Diversified Financial Services companies is 0.88, based on 562 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bajaj Finserv's current ROA % of 1.34% is 53.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Bajaj Finserv and its competitors. For the Diversified Financial Services industry, the median ROA % is 0.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bajaj Finserv's current ROA % is 1.34%, which is 22% below median its own 10-year median of 1.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bajaj Finserv stock overvalued right now?
Based on GuruFocus' analysis, Bajaj Finserv (BOM:532978) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹2,412.17, compared to a current price of ₹1,885.65 — trading 21.8% below its estimated fair value. The current ROA % is 1.34%, which is 22% below median its 10-year median of 1.71 and 53.1% above the Diversified Financial Services industry median of 0.88. Bajaj Finserv's overall GF Score™ is 82/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Bajaj Finserv (BOM:532978), the current ROA % is 1.34% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Bajaj Finserv (BOM:532978) Overvalued in 2026?
Based on GuruFocus' analysis, Bajaj Finserv stock appears to be undervalued.
The current stock price of ₹1,885.65 is trading 21.8% below its estimated GF Value™ of ₹2,412.17.
GuruFocus considers Bajaj Finserv to be Modestly Undervalued.
Key valuation signals for BOM:532978:
ROA %: 1.34% (22% below median its 10-year median of 1.71)
GF Value™: ₹2,412.17 vs. price of ₹1,885.65 (21.8% below fair value)
Industry Position: 53.1% above the Diversified Financial Services median (#227 of 562)
No single metric tells the full story. See the BOM:532978 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bajaj Finserv Ltd is a non-banking financial services company headquartered in India that engages in lending activities. It services six lending verticals: consumer, small and midsize enterprises, commercial, rural, deposits, and partnerships and services. Bajaj's consumer and rural lending consists of funding solutions for consumer durables, such as vehicles and furniture, to personal loans. The commercial lending activities consist of funding for plant and machinery assets and term loans to SMEs. Its business segments include: Life Insurance, General Insurance, Windpower, Retail Finance, and Investment and Others. It derives maximum revenue from the Retail Finance segment. Geographically, the company derives all of its revenue from its operations in India.
82GF Score
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