Detailed Narrative
Consolidated Performance Overview
Bajaj Finserv reported a strong Q1 FY26, with consolidated total income growing 13% year-on-year to INR 35,451 crores, up from INR 31,480 crores in the same period last year. Consolidated Profit After Tax (PAT) surged 30% to an all-time high of INR 2,789 crores, compared to INR 2,138 crores last year. The PBT growth was 21%, with the delta attributed to higher tax on dividends in Q1 of the previous year.
Bajaj Allianz General Insurance (BAGIC) Performance
BAGIC's Gross Written Premium (GWP) increased 9% year-on-year to INR 5,202 crores. Excluding crop and government health business and the impact of 1/N regulations, GWP growth was a healthy 15%, outpacing the industry's 14%. PAT grew 15% to INR 660 crores, driven by better investment performance, and the combined ratio stood at 103.6%, improving from 103.7% last year. The annualized ROE was 21.4%, with an expectation to reach upwards of 25% excluding surplus capital.
Bajaj Allianz Life Insurance (BALIC) Performance
BALIC's GWP grew 9% year-on-year to INR 5,479 crores, while PAT saw a significant 76% increase to INR 171 crores. The Value of New Business (VNB) registered a 39% increase, reaching INR 145 crores, and the New Business Margin (NBM) expanded by 4.2% to 11.1%. Retail protection business grew 53% to INR 110 crores, reflecting the BALIC 2.0 strategy focused on sustainable and profitable growth, despite muted top-line growth in Q1.
Lending Businesses (BFL & BHFL) Update
Bajaj Finance Limited (BFL) reported a 25% year-on-year AUM growth, reaching INR 4,41,450 crores, and a 22% increase in consolidated PAT to INR 4,765 crores. New loans booked grew 23% to 13.49 million, and the company expects to disburse over 50 million new loans and add 14-16 million new customers in FY26. Bajaj Housing Finance Limited (BHFL) also had a strong quarter, with PAT growing 21% to INR 583 crores and AUM growing 24%, supported by robust growth across all segments.
Platform Businesses (Health, Markets, AMC)
Bajaj Finserv Health Limited (eBH) significantly expanded its health transactions to 5.8 million, up from 2.05 million last year, leveraging its growing provider network. Bajaj Markets saw a temporary dip in top-line and disbursements due to a scheduled digital journey change, with growth expected to reinstate from Q2. Bajaj Finserv Asset Management Company (AMC) demonstrated strong growth, with AUM increasing 107% year-on-year to INR 25,011 crores, with 83% of AUM from non-group sources.
Allianz Joint Venture Exit Update
Approvals have been received from both the Competition Commission of India and IRDAI for Bajaj Finserv and its promoter group companies to acquire Allianz SE's 26% stake in both BAGIC and BALIC. The initial tranche, a minimum of 6.1% stake, is expected to be paid within 6 months of IRDAI approval, after which the existing joint venture agreements will terminate. The full acquisition of the 26% stake is targeted by October 16, 2026.
Cost Rationalization and Profitability Focus
Management emphasized a comprehensive 360-degree approach to cost rationalization across BALIC, including commission deferment, reduction in variable and fixed spends, and process re-engineering. This focus, alongside strategic product mix changes (e.g., increased term focus in BALIC) and disciplined underwriting in BAGIC, is aimed at driving sustainable profitability and margin expansion across the businesses. The company also highlighted improving persistency rates for BALIC across various buckets.