Holding Company Archives

BAJAJFINSV – Bajaj Finserv – Q4 FY26 Earnings Call – 30-Apr-26

Bajaj Finserv’s topline growth hinges on MTM reversal and insurance mix, bottomline resilience depends on cost discipline and GST mitigation, while margins are sensitive to competitive intensity and persistency trends.

1–2 minutes

Also see: BAJAJFINSV – Bajaj Finserv – Q4 FY26 Financial Results – 30-Apr-26

3-Scenario Framework

📊 Base Case (50% Probability)

MTM losses persist but stabilize; revenue/PAT grow 8-10%/10-12%. Bajaj Life VNB margin stabilizes at 24-25% as GST mitigation offsets persistency pressures. Bajaj General COR remains 100-102% amid competitive motor/GMC markets. Alternatives business launches on time, but AUM growth gradual. Bajaj Markets break-even by late FY27.

BAJAJFINSV – Bajaj Finserv – Q4 FY26 Financial Results – 30-Apr-26

Bajaj Finserv’s FY26 shows 20%+ AUM growth, stabilizing credit costs, and insurance scaling but volatile. PBT margin at 17.9% reflects discipline amid expansion, yet 29% borrowings growth and negative OCF keep refinancing risk central in a rising rate environment.

1–2 minutes

🔍 Observations

Topline

Total income grew 13.2% YoY (₹1,32,944 Cr → ₹1,50,530 Cr in FY26), led by interest income (+18.5%) and insurance premium (+13.8%), offsetting a ₹3,984 Cr swing from fair value gains to losses.
Q4FY26 revenue dipped 2.5% QoQ (₹39,508 Cr → ₹38,508 Cr), entirely attributable to a ₹4,022 Cr fair value reversal vs. prior quarter gain of ₹771 Cr — underlying business lines stable.
Retail financing segment drove the lion’s share of topline: ₹81,990 Cr in FY26 vs. ₹68,847 Cr in FY25 (+19.1%), with insurance contributing ₹68,860 Cr (+7.3% YoY).

Bottomline

PAT grew 12.0% YoY (₹17,558 Cr → ₹19,669 Cr); PAT attributable to owners grew 10.5% (₹8,872 Cr → ₹9,801 Cr), with NCI absorbing ~50% of consolidated profit.
Q4FY26 PAT of ₹5,226 Cr rose 9.9% YoY and 19.7% QoQ — Q3FY26 was depressed by a ₹379 Cr one-off New Labour Codes exceptional charge.
Basic EPS improved to ₹61.3 in FY26 from ₹55.6 in FY25 (+10.3%); diluted EPS at ₹61.0 vs. ₹55.0 (+10.9%).

Margins

PBT margin: ₹26,883 Cr / ₹1,50,530 Cr = 17.9% in FY26 vs. ₹23,748 Cr / ₹1,32,944 Cr = 17.9% in FY25 — flat despite scale, signalling cost discipline offset by insurance volatility.
PAT margin: ₹19,669 Cr / ₹1,50,530 Cr = 13.1% in FY26 vs. ₹17,558 Cr / ₹1,32,944 Cr = 13.2% in FY25 — virtually unchanged; tax efficiency improved marginally (effective rate ~26.8% vs. 26.1%).
Retail financing dominates PBT contribution at ₹25,601 Cr (95.2% of consolidated PBT), masking insurance segment weakness where general insurance PBT fell 7.3% YoY (₹2,130 Cr → ₹1,975 Cr).

Growth Trajectory

Loans AUM expanded 22.4% YoY (₹4,08,491 Cr → ₹5,00,016 Cr); retail financing segment AUM grew 20.1% (₹4,65,085 Cr → ₹5,58,382 Cr) — lending engine accelerating.
Total GWP grew 15.3% YoY (₹48,743 Cr → ₹56,223 Cr): life insurance +21.1%, general insurance +8.1% — life insurance outpacing the general book.
Total assets grew 16.3% YoY (₹6,52,232 Cr → ₹7,58,498 Cr), funded primarily by debt securities (+26.1%) and borrowings (+29.2%), keeping pace with AUM growth.

BAJAJFINSV – Q3 FY26 Earnings Call – 5-Feb-26

BAJAJFINSV’s topline resilience (24% consolidated income growth) faces margin headwinds from GST/Labor Code one-offs and motor underwriting pressures, while capital allocation discipline (Allianz buyout, AMC diversification) and structural edges (Bajaj General’s combined ratio, Bajaj Life’s VNB trajectory) underpin long-term ROE expansion—contingent on execution of pricing actions, agency channel reset.

1–2 minutes

3-Scenario Framework

📊 Base Case (50% Probability)

Key variables: Motor OD loss ratios correct to 105% by Q2FY27; agency VNB growth sustains at 15–20% YoY; AMC AUM reaches INR 35Kcr.
Outcome: Consolidated PAT growth 12–15%; life NBM stabilizes at 18–19%; general insurance combined ratio at 98–100%. Margin stability: NNM flat YoY, ROE expansion driven by capital efficiency.