Finance - NBFC · Founded 1987 · www.bajajfinserv.in/finance · BSE 500034 · NSE BAJFINANCE · ISIN INE296A01032
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1. Business Overview
Bajaj Finance Ltd. (BFL) is a leading Non-Banking Financial Company (NBFC) in India. Its core business involves providing a wide range of financial products and services to retail, SME (Small and Medium-sized Enterprises), and commercial customers. The company primarily operates as a lender, offering various forms of credit, including consumer durable loans, personal loans, home loans, vehicle finance, business loans, and rural lending. BFL generates revenue primarily through interest income earned on the loans and advances it disburses, as well as through associated processing fees and charges. It emphasizes a digital-first approach for customer acquisition, underwriting, and servicing.
2. Key Segments / Revenue Mix
Bajaj Finance's business is broadly diversified across multiple segments, contributing to its Asset Under Management (AUM):
Consumer Finance: This is a significant segment, including loans for consumer durables, lifestyle products, digital products, personal loans, and credit cards. It is characterized by small-ticket, high-volume transactions.
SME Finance: Caters to small and medium enterprises with products like working capital loans, professional loans, and business loans.
Commercial Finance: Offers loans to large and mid-market corporations, including vendor financing, supply chain financing, and loan against property.
Rural Finance: Focuses on lending to customers in semi-urban and rural areas for products like two-wheelers, consumer durables, and personal loans.
Financial Services: Includes products like fixed deposits for depositors and wealth management services.
While specific revenue percentages fluctuate, consumer and SME finance typically form the largest portions of its AUM.
3. Industry & Positioning
The Indian NBFC sector is dynamic and highly competitive, comprising a diverse range of players. Bajaj Finance Ltd. stands out as one of the largest and most diversified NBFCs in India. It distinguishes itself through its expansive physical and digital distribution network, aggressive adoption of technology for customer acquisition and servicing, robust risk management frameworks, and a wide product portfolio. It holds a leading position in several niche segments, particularly in consumer durable financing, and has a significant market share in the overall retail credit space, competing effectively with both traditional banks and other NBFCs.
4. Competitive Advantage (Moat)
Bajaj Finance possesses several durable competitive advantages:
Scale & Reach: A vast pan-India presence with thousands of physical points of sale and a substantial digital footprint, allowing it to reach a diverse customer base.
Data & Analytics: Sophisticated proprietary algorithms and extensive customer data enable superior credit underwriting, risk assessment, and highly effective cross-selling to its large existing customer base.
Digital Prowess: Early and sustained investment in digital technologies, including its widely used mobile app and online platforms, provides a seamless customer experience and efficiency.
Brand Trust: Leveraging the strong and reputable "Bajaj" brand name, which fosters customer trust and loyalty.
Diversified Product Portfolio: A broad array of lending products mitigates reliance on any single segment and allows for comprehensive engagement with customers across their financial life cycle.
5. Growth Drivers
Rising Indian Consumption & Credit Demand: India's growing middle class, increasing urbanization, and expanding economy fuel demand for retail and business credit.
Digitalization and Financial Inclusion: Continued adoption of digital payments and financial services, coupled with government initiatives for financial inclusion, expands the addressable market.
Cross-selling to Existing Customers: Bajaj Finance's large and growing customer franchise provides significant opportunities for cross-selling new products and increasing customer lifetime value.
Expansion into New Geographies/Segments: Strategic expansion into untapped semi-urban and rural markets, and new product offerings.
Partnerships: Collaborations with manufacturers, retailers, and fintech companies to expand reach and product offerings.
6. Risks
Credit Risk: Deterioration in asset quality (Non-Performing Assets - NPAs) due to economic downturns, industry-specific stress, or challenges in specific loan segments can impact profitability.
Interest Rate Risk: Volatility in interest rates can affect funding costs and net interest margins (NIMs), particularly in a rising interest rate environment.
Regulatory Risk: Changes in RBI regulations for NBFCs (e.g., capital adequacy norms, provisioning requirements, fair practices code) can impact business operations and profitability.
Competition: Intense competition from public and private sector banks, other NBFCs, and emerging fintech players for market share and customer acquisition.
Funding Risk: While diversified, reliance on wholesale funding and capital markets can expose the company to liquidity and funding cost fluctuations.
Technological and Cyber Security Risk: Dependence on digital platforms makes it susceptible to cyber-attacks, data breaches, and system failures.
7. Management & Ownership
Bajaj Finance Ltd. is part of the diversified Bajaj Group, one of India's oldest and most respected business conglomerates. The promoter group, primarily the Bajaj family, holds a significant stake in the company, ensuring aligned long-term interests. The company is managed by a professional and experienced leadership team known for its strategic vision, execution capabilities, and strong emphasis on risk management and technological innovation. Bajaj Finance is generally perceived to have good corporate governance practices. The ownership structure includes the promoter group, institutional investors (domestic and foreign), and public shareholders.
8. Outlook
Bajaj Finance Ltd. is well-positioned to capitalize on India's long-term credit growth story, driven by its robust business model, technological edge, and diversified product offerings. Its ability to leverage data for precise underwriting and cross-selling, combined with a strong brand and widespread distribution, suggests continued growth in AUM and profitability. However, the lending business inherently carries risks, notably credit quality fluctuations, a dynamic regulatory environment, and fierce competition. Prudent risk management, efficient capital allocation, and adaptability to evolving market and regulatory landscapes will be crucial for sustained performance in a competitive and cyclical financial sector.
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| #(Fig in Cr.) | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Revenue | 14164 | 14927 | 16100 | 17091 | 18035 | 18294 | 19524 | 20179 | 21214 | 21606 |
| Other Income | 3 | 5 | 2 | 4 | 23 | 12 | 4 | 2 | 1 | 1 |
| Total Income | 14167 | 14932 | 16102 | 17095 | 18058 | 18306 | 19528 | 20181 | 21215 | 21607 |
| Total Expenditure | 4229 | 4420 | 4956 | 5338 | 5691 | 5865 | 5992 | 6307 | 7938 | 6553 |
| Operating Profit | 9938 | 10512 | 11147 | 11757 | 12367 | 12442 | 13536 | 13874 | 13277 | 15053 |
| Interest Expense | 4868 | 5217 | 5684 | 6149 | 6386 | 6551 | 6918 | 7011 | 7339 | 7398 |
| Depreciation | 176 | 193 | 200 | 210 | 219 | 252 | 251 | 258 | 244 | 256 |
| Profit Before Tax | 4894 | 5102 | 5263 | 5398 | 5762 | 5639 | 6367 | 6605 | 5429 | 7400 |
| Provision for Tax | 1257 | 1281 | 1353 | 1388 | 1457 | 1102 | 1602 | 1660 | 1365 | 1857 |
| Profit After Tax | 3637 | 3822 | 3909 | 4010 | 4305 | 4537 | 4765 | 4944 | 4064 | 5543 |
| Adjustments | 2 | 3 | 3 | -11 | -59 | -57 | -65 | -69 | -86 | -79 |
| Profit After Adjustments | 3639 | 3825 | 3912 | 4000 | 4247 | 4480 | 4700 | 4875 | 3978 | 5465 |
| Adjusted Earnings Per Share | 5.9 | 6.2 | 6.3 | 6.5 | 6.9 | 7.2 | 7.6 | 7.8 | 6.4 | 8.8 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Revenue | 5382 | 7294 | 9967 | 12744 | 18487 | 26374 | 26690 | 31640 | 41410 | 54974 | 69684 | 82523 |
| Other Income | 176 | 40 | 25 | 12 | 13 | 12 | 15 | 8 | 8 | 9 | 41 | 8 |
| Total Income | 5558 | 7334 | 9992 | 12757 | 18500 | 26386 | 26705 | 31648 | 41418 | 54983 | 69725 | 82531 |
| Total Expenditure | 1891 | 2354 | 3251 | 4115 | 5454 | 9161 | 10868 | 11905 | 12706 | 16111 | 21790 | 26790 |
| Operating Profit | 3666 | 4980 | 6742 | 8642 | 13046 | 17224 | 15837 | 19743 | 28712 | 38871 | 47935 | 55740 |
| Interest Expense | 2274 | 2959 | 3853 | 4696 | 6723 | 9608 | 9519 | 9855 | 12701 | 18886 | 24992 | 28666 |
| Depreciation | 36 | 56 | 71 | 102 | 144 | 295 | 325 | 385 | 485 | 683 | 881 | 1009 |
| Profit Before Tax | 1357 | 1965 | 2817 | 3843 | 6179 | 7322 | 5992 | 9504 | 15528 | 19310 | 22080 | 25801 |
| Provision for Tax | 459 | 686 | 981 | 1347 | 2184 | 2058 | 1572 | 2476 | 4020 | 4858 | 5300 | 6484 |
| Profit After Tax | 898 | 1279 | 1836 | 2496 | 3995 | 5264 | 4420 | 7028 | 11508 | 14451 | 16779 | 19316 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -142 | -299 |
| Profit After Adjustments | 898 | 1279 | 1836 | 2496 | 3995 | 5264 | 4420 | 7028 | 11508 | 14451 | 16638 | 19018 |
| Adjusted Earnings Per Share | 1.8 | 2.4 | 3.4 | 4.3 | 6.9 | 8.8 | 7.3 | 11.6 | 19 | 23.4 | 26.8 | 30.6 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 27% | 30% | 21% | 29% |
| Operating Profit CAGR | 23% | 34% | 23% | 29% |
| PAT CAGR | 16% | 34% | 26% | 34% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -1% | 10% | 10% | 28% |
| ROE Average | 20% | 22% | 19% | 20% |
| ROCE Average | 11% | 12% | 11% | 12% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 4800 | 7427 | 9600 | 15848 | 19697 | 32328 | 36918 | 43713 | 54372 | 76695 | 96693 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2244 |
| Borrowings | 18274 | 25287 | 33116 | 46028 | 67159 | 122859 | 122110 | 99011 | 194422 | 182581 | 230377 |
| Current Liability | 9910 | 14261 | 21033 | 22851 | 37258 | 8868 | 12074 | 69263 | 25847 | 115239 | 135403 |
| Other Liabilities & Provisions | 1338 | 2204 | 3150 | -697 | -551 | -513 | -578 | -432 | -352 | 209 | 269 |
| Total Liabilities | 34321 | 49179 | 66900 | 84031 | 123563 | 163541 | 170525 | 211555 | 274289 | 374724 | 464986 |
| Loans | 18120 | 24779 | 32028 | 79103 | 112513 | 141376 | 146687 | 191423 | 242269 | 326293 | 407844 |
| Investments | 147 | 457 | 762 | 1025 | 1512 | 3089 | 4596 | 10670 | 16331 | 26077 | 27911 |
| Fixed Assets | 252 | 290 | 366 | 470 | 695 | 1321 | 1316 | 1716 | 2308 | 3250 | 3780 |
| Other Loans | 1352 | 1894 | 2009 | 38 | 167 | 295 | 276 | 390 | 311 | 439 | 608 |
| Other Non Current Assets | 0 | 0 | 0 | 1 | 4 | 28 | 51 | 230 | 80 | 2591 | 449 |
| Current Assets | 14450 | 21759 | 31734 | 3394 | 8673 | 17432 | 17599 | 7125 | 12991 | 16073 | 24394 |
| Total Assets | 34321 | 49179 | 66900 | 84031 | 123563 | 163541 | 170525 | 211555 | 274289 | 374724 | 464986 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 0 | 228 | 1297 | 325 | 338 | 347 | 1345 | 1849 | 3381 | 1551 | 4035 |
| Cash Flow from Operating Activities | 0 | -9870 | -10439 | -20566 | -29062 | -24412 | -807 | -37090 | -42112 | -69843 | -68154 |
| Cash Flow from Investing Activities | 0 | -687 | -3047 | 1075 | -5379 | -8758 | -429 | 6347 | -10394 | -10088 | -2765 |
| Cash Flow from Financing Activities | 0 | 11656 | 12513 | 19503 | 34449 | 34167 | 1741 | 32275 | 50675 | 82415 | 70527 |
| Net Cash Inflow / Outflow | 0 | 1100 | -972 | 13 | 9 | 998 | 505 | 1532 | -1831 | 2484 | -392 |
| Closing Cash & Cash Equivalent | 0 | 1328 | 325 | 338 | 347 | 1345 | 1849 | 3381 | 1551 | 4035 | 3642 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 1.8 | 2.39 | 3.36 | 4.34 | 6.93 | 8.77 | 7.35 | 11.65 | 19.04 | 23.38 | 26.8 |
| CEPS(Rs) | 1.87 | 2.49 | 3.49 | 4.52 | 7.18 | 9.26 | 7.89 | 12.29 | 19.84 | 24.49 | 28.45 |
| DPS(Rs) | 0.18 | 0.25 | 0.36 | 0.4 | 0.6 | 1 | 1 | 2 | 3 | 3.6 | 5.6 |
| Book NAV/Share(Rs) | 9.6 | 13.68 | 17.56 | 27.41 | 33.91 | 53.53 | 60.86 | 71.8 | 89.03 | 122.47 | 154.21 |
| Net Profit Margin | 16.68 | 17.53 | 18.43 | 19.59 | 21.61 | 19.96 | 16.56 | 22.21 | 27.79 | 26.29 | 24.08 |
| Operating Margin | 67.46 | 67.5 | 66.93 | 67.01 | 69.79 | 64.19 | 58.12 | 61.18 | 68.17 | 69.48 | 67.55 |
| PBT Margin | 25.21 | 26.94 | 28.27 | 30.16 | 33.42 | 27.76 | 22.45 | 30.04 | 37.5 | 35.13 | 31.69 |
| ROA(%) | 2.62 | 3.06 | 3.16 | 3.31 | 3.85 | 3.67 | 2.65 | 3.68 | 4.74 | 4.45 | 4 |
| ROE(%) | 18.71 | 21.09 | 21.7 | 19.68 | 22.62 | 20.37 | 12.86 | 17.59 | 23.7 | 22.32 | 19.58 |
| ROCE(%) | 11.54 | 12.97 | 12.91 | 12.09 | 12.67 | 11.95 | 9.38 | 10.26 | 11.76 | 11.92 | 11.37 |
| Price/Earnings(x) | 22.81 | 29.02 | 34.96 | 40.77 | 43.68 | 25.26 | 70.08 | 62.31 | 29.5 | 30.96 | 33.39 |
| Price/Book(x) | 4.27 | 5.07 | 6.69 | 6.46 | 8.92 | 4.14 | 8.46 | 10.11 | 6.31 | 5.91 | 5.8 |
| Dividend Yield(%) | 0.44 | 0.36 | 0.31 | 0.23 | 0.2 | 0.45 | 0.19 | 0.28 | 0.53 | 0.5 | 0.63 |
| EV/Net Sales(x) | 8.72 | 9.98 | 11.35 | 13.18 | 14.91 | 9.91 | 16.46 | 18.95 | 13.33 | 13.32 | 12.96 |
| EV/Core EBITDA(x) | 12.79 | 14.62 | 16.78 | 19.44 | 21.14 | 15.17 | 27.73 | 30.37 | 19.22 | 18.84 | 18.85 |
| Interest Earned Growth(%) | 0 | 35.52 | 36.65 | 27.87 | 45.06 | 42.66 | 1.2 | 18.55 | 30.88 | 32.75 | 26.76 |
| Net Profit Growth | 0 | 42.41 | 43.62 | 35.94 | 60.03 | 31.76 | -16.03 | 59.02 | 63.74 | 25.58 | 16.11 |
| EPS Growth(%) | 0 | 32.96 | 40.64 | 29.25 | 59.56 | 26.69 | -16.26 | 58.57 | 63.42 | 22.83 | 14.6 |
| Interest Coverage(x) % | 1.6 | 1.66 | 1.73 | 1.82 | 1.92 | 1.76 | 1.63 | 1.96 | 2.22 | 2.02 | 1.88 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 54.78 | 54.69 | 54.7 | 54.7 | 54.7 | 54.73 | 54.73 | 54.66 | 54.7 | 54.7 |
| FII | 20.92 | 20.56 | 21.09 | 20.81 | 20.79 | 21.46 | 21.71 | 21.97 | 21.5 | 21.33 |
| DII | 14.08 | 14.4 | 14.31 | 15.09 | 15.17 | 14.86 | 14.59 | 14.47 | 14.94 | 15.18 |
| Public | 10.22 | 10.35 | 9.91 | 9.4 | 9.34 | 8.94 | 8.96 | 8.89 | 8.86 | 8.78 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 33.85 | 33.85 | 33.86 | 33.86 | 33.86 | 34.01 | 340.12 | 340.15 | 340.35 | 340.4 |
| FII | 12.93 | 12.73 | 13.05 | 12.88 | 12.87 | 13.33 | 134.94 | 136.73 | 133.76 | 132.71 |
| DII | 8.7 | 8.92 | 8.86 | 9.34 | 9.39 | 9.24 | 90.68 | 90.03 | 92.98 | 94.47 |
| Public | 6.32 | 6.41 | 6.13 | 5.82 | 5.78 | 5.56 | 55.68 | 55.35 | 55.16 | 54.66 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 61.8 | 61.9 | 61.9 | 61.9 | 61.9 | 62.14 | 621.43 | 622.25 | 622.25 | 622.25 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 54.78 | 54.69 | 54.7 | 54.7 | 54.7 | 54.73 | 54.73 | 54.66 | 54.7 | 54.7 |
| FII | 20.92 | 20.56 | 21.09 | 20.81 | 20.79 | 21.46 | 21.71 | 21.97 | 21.5 | 21.33 |
| DII | 14.08 | 14.4 | 14.31 | 15.09 | 15.17 | 14.86 | 14.59 | 14.47 | 14.94 | 15.18 |
| Public | 45.22 | 45.31 | 45.3 | 45.3 | 45.3 | 45.27 | 45.27 | 45.34 | 45.3 | 45.3 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 33.85 | 33.85 | 33.86 | 33.86 | 33.86 | 34.01 | 340.12 | 340.15 | 340.35 | 340.4 |
| FII | 12.93 | 12.73 | 13.05 | 12.88 | 12.87 | 13.33 | 134.94 | 136.73 | 133.76 | 132.71 |
| DII | 8.7 | 8.92 | 8.86 | 9.34 | 9.39 | 9.24 | 90.68 | 90.03 | 92.98 | 94.47 |
| Public | 27.95 | 28.05 | 28.04 | 28.04 | 28.04 | 28.13 | 281.31 | 282.1 | 281.9 | 281.85 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 61.8 | 61.9 | 61.9 | 61.9 | 61.9 | 62.14 | 621.43 | 622.25 | 622.25 | 622.25 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | +27% | +30% | +21% | +29% |
| Operating Profit CAGR | +23% | +34% | +23% | +29% |
| PAT CAGR | +16% | +34% | +26% | +34% |
| Share Price CAGR | -1% | +10% | +10% | +28% |
| ROE Average | +20% | +22% | +19% | +20% |
| ROCE Average | +11% | +12% | +11% | +12% |
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