Bajaj Finserv

Bajaj Finserv reported a consolidated total income of INR 37,400 crores for Q2 FY26, marking an 11% year-on-year growth. The consolidated Profit After Tax (PAT) increased by 8% to INR 2,244 crores. Excluding the impact of mark-to-market (MTM) movements from insurance subsidiaries, PAT growth was a healthier 12%. The company also confirmed receiving necessary approvals for the acquisition of Allianz's stake in its insurance companies, which are now rebranded as Bajaj General Insurance Limited and Bajaj Life Insurance Limited, with the acquisition expected to conclude in the next few months. Financials for insurance companies are reported under Indian GAAP for standalone, and IndAS for consolidation.

Bajaj Life Insurance demonstrated significant progress with its 'Bajaj Life 2.0' strategy, achieving a 50% YoY increase in Value of New Business (VNB) to INR 367 crores and expanding new business margins to 17.1% from 10.8% YoY. Retail protection grew 71%, contributing 8% to overall retail weighted received premium. However, Bajaj Life's PAT was significantly impacted by INR 112 crores due to GST regulations, specifically the loss of input tax credit, resulting in a PAT of INR 13 crores compared to INR 148 crores last year. Management expects to mitigate most of this GST impact over the next two quarters. Bajaj General Insurance saw GWP grow 9% to INR 6,413 crores (13.6% excluding 1/n impact), with PAT up 5% to INR 517 crores, despite higher acquisition costs and a combined ratio of 102.3% (101.4% excluding 1/n impact).

Both Bajaj Finance and Bajaj Housing Finance delivered strong performances. Bajaj Finance reported a 24% YoY growth in AUM to INR 4,62,000 crores and a 23% increase in PAT to INR 4,948 crores. Net total income grew 20% to INR 13,170 crores. Despite elevated credit costs, particularly in the 2 & 3-wheeler and MSME segments, the company maintained a healthy capital adequacy of 21.22%. Bajaj Housing Finance also saw its AUM grow 24%, with Net Interest Income up 22% to INR 1,097 crores and PAT rising 18% to INR 643 crores. Asset quality remained strong with GNPA at 0.26% and NNPA at 0.12%.

Bajaj Finserv Health Limited significantly expanded its reach, recording 6.2 million health transactions in Q2 FY26, more than double the 2.4 million transactions from the previous year, and revenue from operations grew 22%. The company aims to break even by FY28. Bajaj Finserv Asset Management Company continued its rapid growth, with AUM reaching INR 28,815 crores as of September 30, 2025, and subsequently crossing INR 30,000 crores. This represents a 77% YoY growth, making it the fastest to achieve the INR 30,000 crore mark in under two years of operations, with 86% of AUM from non-group sources.

Management reiterated its commitment to profitable growth and sustainable value creation across all businesses. For Bajaj Life, the focus remains on maintaining the improved product mix and achieving a term protection market share of around 10% in the medium term (2-3 years). The company is comfortable with its current capital position, with capital consumers primarily being the Health and AMC businesses. The ongoing regulatory developments, including IndAS and RBC, are expected to influence the long-term strategy for the insurance sector, with management planning to review future capital allocation decisions post the Allianz acquisition and regulatory clarity.