Bajaj Finserv Limited

Bajaj Finserv reported a strong consolidated performance for Q3 FY26, with total income growing 24% year-on-year to INR 39,708 crores from INR 32,042 crores. The consolidated profit after tax, before accounting for accelerated ECL provisions and the new Labor Code charge, increased by 32% to INR 2,936 crores compared to INR 2,231 crores in the same quarter last year. After all adjustments, the consolidated PAT grew by 13%, demonstrating robust underlying business momentum despite one-off^📎 impacts.

Bajaj General Insurance maintained its market leadership, ranking first among private players on GDPI basis. Gross Written Premium (GWP) for the quarter grew 11.5% to INR 7,389 crores. Excluding bulky tender-driven crop and government health business, GWP growth was even stronger at 17.2%. The company achieved a healthy combined ratio of 97.9%, a significant improvement from 101.1% last year, despite an underwriting loss of INR 137 crores impacted by the new Labor Code and higher acquisition costs. AUM for Bajaj General stood at INR 36,417 crores, up almost 12% YoY.

Bajaj Life Insurance's '2.0' strategy focusing on sustainable and profitable growth is yielding results. Retail weighted received premium grew 19.9% to INR 1,856 crores, largely in line with industry growth, backed by a 47% growth in retail protection. Value of New Business (VNB) surged 59% to INR 405 crores, and the New Business Margin (NBM) improved significantly to 19% from 15.1% last year. Overall GWP grew 23.5%, though persistency dips were observed in some cohorts. AUM reached INR 1,38,027 crores, up 13.1% YoY.

Bajaj Finance continued its robust performance, booking 1.39 crore new loans, a 15% increase YoY. AUM grew 22.1% to INR 4,85,883 crores, driven by a diversified business model. Net total income increased 19% to INR 13,875 crores. PAT, before one-off^📎 impacts, grew 23.3% to INR 5,227 crores. Asset quality remained healthy with GNPA at 1.2% and NNPA at 0.5%. Bajaj Housing Finance also had a strong quarter, with AUM growth of 23.2% and PAT (adjusted) growing 23.2% to INR 675 crores, maintaining healthy asset quality (GNPA 0.27%, NNPA 0.11%).

Bajaj Finserv Health processed 6.2 million healthcare transactions, a significant increase from 2.1 million last year, with revenue growing 22%. Bajaj Markets' lending disbursements stood at INR 1,800 crores, though revenue was impacted by a planned software transition, with reinstatement expected from Q4. Bajaj Finserv Asset Management continued its strong run, with AUM exceeding INR 30,000 crores as of December 2025, making it the fastest to reach this milestone in 2.5 years. Equity mix of AUM was 56%, with 87% from non-group sources.

A significant development this quarter was the successful completion of the acquisition of Allianz SE's 23% equity stake in both Bajaj General Insurance and Bajaj Life Insurance on January 8, 2026. This transaction increased the Bajaj Group's collective holding to 97% in each insurance subsidiary, terminating the JV with Allianz SE. The Boards have also approved a buyback offer for the remaining 3% stake, which is expected to further strengthen the ROE and ROEV of the insurance subsidiaries.

The quarter's results were influenced by two exceptional items^📎. The new Labor Code had a gross impact of approximately INR 380 crores across all companies, resulting in a net consolidated PAT impact of INR 167 crores for Bajaj Finserv. Additionally, Bajaj Finance made an accelerated ECL provision of INR 1,406 crores to enhance balance sheet resilience, leading to a net consolidated PAT impact of INR 540 crores for Bajaj Finserv. These one-offs^📎 were factored into the reported profitability figures.