Bajaj Auto Subsidiary BACL Reaffirms Top CARE AAA Rating

Bajaj Auto Credit Limited (BACL) has successfully maintained its top 'CARE AAA (Stable)' credit rating from CARE Ratings for its ₹10,000 crore in long-term bank facilities. This signifies a very strong capacity to meet its debt obligations.

Rating Reaffirmed

Bajaj Auto Credit Limited (BACL), the wholly-owned non-banking financial company (NBFC) and subsidiary of Bajaj Auto Limited (BAL), has had its credit rating reaffirmed. CARE Ratings has affirmed the 'CARE AAA (Stable)' rating for BACL's long-term bank facilities totaling ₹10,000 crore. This rating signifies a very strong degree of safety concerning timely payment of its financial obligations. Bajaj Auto received this notification on March 31, 2026, via a letter dated March 27, 2026, from CARE Ratings.

Why This Rating Matters

This reaffirmation of the highest credit rating is vital for BACL. It secures the company's ongoing access to capital markets at competitive borrowing rates. A strong credit rating boosts financial flexibility, enabling BACL to efficiently fund its expanding loan book, crucial for its function as a captive financier for Bajaj Auto vehicles. This also builds confidence among lenders and investors in BACL's financial stability and its strategic position within the Bajaj Auto group, indirectly supporting vehicle sales by providing smooth financing options for customers.

About Bajaj Auto Credit Limited

BACL began operations in January 2024. It was initially incorporated as Bajaj Auto Consumer Finance Limited in December 2021, later renamed Bajaj Auto Credit Limited in 2023-24. As a captive financier, its main purpose is to offer financing exclusively for vehicles made and sold by Bajaj Auto and its associates, a strategy that helps boost vehicle sales. Bajaj Auto Limited has shown strong commitment to BACL's expansion, planning to inject ₹1,500 crore in FY26 to support its growing assets under management (AUM).

What the Rating Means

• Continued strong access to debt capital at favorable interest rates.
• Enhanced ability for BACL to scale lending operations efficiently.
• Reinforced confidence for lenders and stakeholders in BACL's creditworthiness.
• Improved support for Bajaj Auto's vehicle sales via robust financing options.

Key Risks

BACL is still in its early operational phase, having commenced business in January 2024. Its loan portfolio is relatively new, and it serves borrowers with modest credit profiles and limited histories. The company's success will depend on its ability to achieve profitable growth while maintaining strong asset quality metrics.

Peer and Parent Ratings

Bajaj Auto Credit Limited's 'CARE AAA (Stable)' rating is the highest category. Other auto finance NBFCs have strong, though lower, ratings. For example, TVS Credit Services Limited holds a 'CARE AA+' rating from CARE, and Hero FinCorp Limited also has a 'CARE AA+' rating from CARE. For broader context, the parent, Bajaj Auto Limited, carries an 'IND AAA/Stable' rating from India Ratings for its bank loan facilities, reflecting the group's overall strong credit standing.

Future Focus

• BACL's future growth trajectory in assets under management (AUM).
• Asset quality metrics (NPAs) performance as the portfolio matures.
• Effectiveness of capital infusions in supporting business expansion.
• Contribution of BACL's financing to Bajaj Auto's vehicle sales volume and market share.
• Diversification or expansion of BACL's funding sources beyond term loans.