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Bajaj Finserv Q1 PAT jumps 27% YoY to Rs 5,329 cr

25-Jul-25 13:09 Hrs IST

Profit before tax (PBT) jumped 20.69% to Rs 7,203.64 crore in Q1 FY26 as compared with Rs 5,968.41 crore in Q1 FY25.

Bajaj Finserv is the holding company for the various financial services businesses under the Bajaj group. It participates in the financing business through its 51.39% holding in Bajaj Finance (BFL) and in the life, general and health insurance businesses through its 74% holding in two unlisted subsidiaries, Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC). BFL holds 88.70% stake in Bajaj Housing Finance (BHFL).

Bajaj Finance (BFL) recorded 20% increase in consolidated net profit to Rs 4,699 crore in Q1 FY26 as against Rs 3,912 crore in Q1 FY25. Loan losses and provisions stood to Rs 2,120 crore in the Q1 FY26, up 25.81% YoY.

Net total income for the June 2025 quarter rose 21% to Rs 12,610 crore from Rs 10,418 crore posted in corresponding quarter previous quarter.

Gross Non-Performing Assets (NPA) and Net NPA as on 30 June 2025 stood at 1.03% and 0.50% respectively as against 0.86% and 0.38% as on 30 June 2024. Provisioning coverage ratio on stage 3 assets was 52%.

Assets Under Management (AUM) stood at Rs 4,41,450 crore as of 30 June 2025, compared to Rs 3,54,192 crore as of 30 June 2024, reflecting a 25% year-on-year growth.

The capital adequacy ratio (CRAR), including Tier-II capital, stood at 21.96% as of 30 June 2025, with the Tier-I capital at 21.19%.

During the quarter, BFL successfully completed a share subdivision on 16 June 2025, reducing the face value of its equity shares from Rs 2 to Rs 1 per fully paid share. Following this, on 17 June 2025, the company issued 4 fully paid bonus equity shares for every 1 fully paid equity share held.

Bajaj Allianz General Insurance Company Limited (BAGIC) stated that, effective 1 October 2024, and as mandated by IRDAI, gross premiums on long-term products are now recognized on a 1/n basis (where 'n' represents the contract duration), applied prospectively. As a result, Q1 FY26 figures are not comparable with those of prior periods.

BAGIC's gross written premium for Q1 FY26 increased by 9% to Rs 5,202 crore, compared to Rs 4,761 crore in Q1 FY25.

Excluding the impact of the change in premium recognition methodology (1/n basis), and excluding tender-driven crop and government health insurance premiums, the gross written premium rose by 15% to Rs 5,358 crore, up from Rs 4,664 crore in Q1 FY25'outpacing industry growth.

The claim ratio improved to 71.1% in Q1 FY26, compared to 77.1% in Q1 FY25, driven by better claims experience.

Profit after tax for Q1 FY26 stood at Rs 660 crore, compared to Rs 576 crore in Q1 FY25, marking a 15% year-on-year increase. As of 30 June 2025, the solvency ratio stood at 334%, significantly higher than the minimum regulatory requirement of 150%.

Assets under management (AUM), represented by cash and investments, stood at Rs 35,199 crore as of 30 June 2025, compared to Rs 31,651 crore as of 30 June 2024, reflecting an 11% year-on-year increase.

Bajaj Allianz Life Insurance Company Limited (BALIC) new business premium for Q1 FY26 stood at Rs 2,316 crore, compared to Rs 2,541 crore in Q1 FY25. Renewal premium for Q1 FY26 rose to Rs 3,162 crore, compared to Rs 2,477 crore in Q1 FY25, registering a 28% year-on-year growth.

Shareholders' profit after tax surged 76% year-on-year to Rs 171 crore in Q1 FY26, up from Rs 97 crore in Q1 FY25.

The Net Value of New Business (VNB)'a key metric for measuring the profitability of the life insurance business'stood at Rs 145 crore in Q1 FY26, up from Rs 104 crore in Q1 FY25, reflecting a 39% increase. This growth was primarily driven by product restructuring, a favourable product mix, and cost rationalisation.

Assets Under Management (AUM), represented by total investments, stood at Rs 1,31,052 crore as on 30 June 2025, compared to Rs 1,16,966 crore as on 30 June 2024, marking a 12% year-on-year increase.

On 17 March 2025, Bajaj Finserv (BFS), along with its promoter and promoter group entities, signed Share Purchase Agreements (SPAs) to acquire Allianz SE's 26% equity stake in Bajaj Allianz General Insurance (BAGIC) and Bajaj Allianz Life Insurance (BALIC).

The acquisition, subject to regulatory approvals, will be executed in tranches by 16 October 2026, with an initial tranche of at least 6.1%. Upon completion of this first tranche, the existing joint venture agreements with Allianz SE will be terminated.

Approvals have already been received from the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI). Name change approvals are currently in process.

Bajaj Finserv is the holding company for the various financial services businesses under the Bajaj group. It serves millions of customers by providing solutions for asset acquisition through financing, asset protection through general insurance, family and income protection in the form of life and health insurance, and retirement and savings solutions.

Shares of Bajaj Finserv tanked 3.48% to Rs 1,961.30 on the BSE.