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Bajaj Finance drops on lowering FY26 guidance; Q4 PAT jumps 17% YoY

30-Apr-25 16:04 Hrs IST

The company now expects asset under management (AUM) growth of 24-25%, down from its earlier estimate of 25-27%. The NBFC also sees 40-50 basis points improvement in cost to income, lower fee income growth of 13-15% and credit cost in the range of 1.85-1.95%, leading to RoA projection of 4.4-4.6% and RoE estimate of 19-20%.

Bajaj Finance reported 17.12% jump in consolidated net profit to Rs 4,479.57 crore on 23.68% rise in total income to Rs 18,468.74 crore in Q4 FY25 over Q4 FY24.

The consolidated results of Bajaj Finance include the results of its wholly owned subsidiaries, Bajaj Housing Finance (BHFL) and Bajaj Financial Securities (BFinsec), and its associate companies, Snapwork Technologies and Pennant Technologies.

Operating expenses rose 19.62% to Rs 3,950 crore in Q4 FY25 as compared to Rs 3,302 crore posted in the corresponding quarter last year.

Net interest income jumped 22.38% to Rs 9,807 crore for Q4 FY25 from Rs 8,013 crore reported in Q4 FY24. Operating expenses to net total income for Q4 FY25 were 33.1%, as against 34% in Q4 FY24.

Loan losses and provisions during the quarter amounted to Rs 2,329 crore (up 77.78% YoY).

Profit before tax in Q4 FY25 stood at Rs 5,647.38 crore, up 10.62% from Rs 5,105.08 crore posted in Q4 FY24.

The number of new loans booked during the quarter grew by 36% to 10.70 million as against 7.87 million in Q4 FY24.

Customer franchise stood at 101.82 million as of 31 March 2025, as compared to 83.64 million as of 31 March 2024, up 22% YoY. Customer franchise grew by 4.70 million in Q4 FY25.

The NBFC's consolidated deposits book jumped 19% YoY and stood at Rs 71,403 crore as of 31 March 2025.

Assets under management (AUM) grew by 26% to Rs 416,661 crore as of 31 March 2025 from Rs 3,30,615 crore as of 31 March 2024. AUM grew by 18,618 crore in Q4 FY25.

On the asset quality front, gross NPA and net NPA stood at 0.96% and 0.44%, respectively, as of 31 March 2025, compared to 0.85% and 0.37% as of 31 March 2024. The company maintained a provisioning coverage ratio of 54% on stage 3 assets as of 31 March 2025.

The NBFC's annualized return on average assets (ROA) stood at 4.6% in Q4 FY25 as compared with 4.8% reported in Q4 FY24. Return on average equity (ROE) stood at 19.1% in the fourth quarter of FY25 as compared with 20.5% posted in Q4 FY24.

The capital adequacy ratio (including Tier-II capital) as of 31 March 2025 was 21.93%. The Tier-I capital was 21.09%.

Meanwhile, the company's board has declared a special interim dividend of Rs 12 per share for the financial year ended 31 March 2025. The dividend will be credited or dispatched on or around 26 May 2025. The record date for determining eligible shareholders has been set as 9 May 2025.

Further, the company's board has recommended a final dividend of Rs 44 per share for the financial year ended 31 March 2025. If approved by shareholders at the upcoming Annual General Meeting, the dividend will be credited or dispatched on or around 28 July 2025. The record date for determining eligible shareholders has been set as 30 May 2025.

Furthermore, the company's board has proposed splitting each equity share of face value Rs 2 into two shares of face value Rs 1 each (fully paid-up). Additionally, the company has proposed issuing bonus shares in a 4:1 ratio, meaning shareholders will receive four bonus shares of Rs 1 each for every one share they currently hold.

Bajaj Finance is one of India's leading and most diversified financial services companies. The company is mainly engaged in the business of lending. BFL has a diversified lending portfolio across retail, SME, and commercial customers with a significant presence.