Bajaj Finance Reports Strong Q2 FY26 Results with 18% Profit Growth and 34% NII Increase

Bajaj Finance has reported significant year-on-year growth for the second quarter of the fiscal year 2025-26. The company’s profit after tax (PAT) saw an impressive 18% increase, reaching Rs 643 crore in Q2 FY26, up from Rs 583 crore in the same quarter of the previous fiscal year (Q2 FY25). This indicates enhanced profitability.

Further strengthening its financial performance, Bajaj Finance's Net Interest Income (NII) experienced a substantial surge of 34% year-on-year. The NII climbed to Rs 956 crore in Q2 FY26, a notable rise from Rs 713 crore in Q2 FY25. This growth in NII is a key indicator of improved core lending business performance.

The company's total income also reflected strong expansion, growing by 22% year-on-year to Rs 1,097 crore in Q2 FY26, from Rs 897 crore in Q2 FY25.

Crucially, Bajaj Finance's Assets Under Management (AUM), which represents the total market value of investments it manages, grew by a healthy 24% on a yearly basis. The AUM reached Rs 1,26,749 crore in Q2 FY26, up from Rs 1,02,569 crore in Q2 FY25, signaling strong business expansion and customer trust.

Impact: These strong financial results are expected to boost investor confidence in Bajaj Finance. The consistent growth across profit, income, and AUM suggests effective business strategies and a healthy expansion trajectory, which could positively influence its stock performance. Impact rating: 8

Definitions: PAT: Profit After Tax (PAT) is the net profit of a company after all expenses, including taxes, have been deducted from its total income. NII: Net Interest Income (NII) is the difference between the interest income a financial institution generates from its lending activities and the interest it pays out to its lenders (like depositors). It is a primary source of revenue for banks and NBFCs.