Bajaj Finserv Limited — Q4 FY26 earnings call

Call held 7 May 2026

Management summary

Bajaj Finserv reported a strong Q4 FY26, with consolidated total income and PAT growing 14% and 24% respectively, after adjusting for temporary MTM impacts. Key subsidiaries like Bajaj Life and Bajaj Finance delivered robust performance with significant growth in VNB and AUM. The company also completed the buyback of Allianz's stake in its insurance JVs, making them 100% Bajaj-owned. Challenges included muted GWP for Bajaj General and persistency dips for Bajaj Life, along with a delay in IFRS 17 adoption due to regulatory ambiguity.

Highlights

  • Consolidated total income, adjusted for temporary MTM losses, grew 14% YoY, reaching ₹38,508 crores.

  • Consolidated PAT, adjusted for temporary MTM losses, grew 24% YoY, reaching ₹2,539 crores.

  • Bajaj Life's Value of New Business (VNB) increased 29% YoY to ₹709 crores, with Net Business Margin (NBM) expanding by 2.4% to 24.5%.

  • Bajaj Finance achieved a 22% YoY growth in AUM, reaching ₹5 lakh crores, and reported a PAT of ₹5,464 crores.

  • Bajaj Finserv Asset Management's average AUM grew significantly by 52% YoY to ₹30,627 crores.

  • Bajaj Finserv Health's revenue grew a healthy 41.6% YoY, and healthcare transactions increased to 6.5 million.

Concerns

  • Consolidated reported total income and PAT were impacted by temporary MTM losses due to geopolitical tensions, showing lower growth of 6% and 5% respectively.

  • Bajaj General Insurance reported muted GWP growth and elevated underwriting losses of ₹96 crores, primarily due to tactical decisions to reduce exposure to crop and motor amid pricing pressures and higher government health claims.

  • Bajaj Life observed persistency dips against certain cohorts, aligning with market trends, which management is actively working to address.

  • The transition to IFRS 17 for insurance companies has been delayed to FY27 due to ambiguity around assumptions and lack of clarity from IRDAI.

Key financials

  1. Consolidated Total Income ₹38,508 Cr +6%YoY
  2. Consolidated PAT ₹2,539 Cr +5%YoY
  3. Bajaj Finance AUM ₹5.00L Cr +22%YoY
  4. Bajaj Life VNB ₹709 Cr +29%YoY
  5. Bajaj General Combined Ratio 113.6%
  6. Bajaj Finserv AMC Avg AUM ₹30,627 Cr +52%YoY

What they filed

Q1 FY27: revenue up 19.1%, net profit up 18.2% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue33,704 32,042 36,595 35,288 37,403 +11%39,708 +24%38,494 +5%42,037 +19%
EBITDA12,283 12,373 12,728 14,315 14,050 +14%13,866 +12%14,511 +14%17,141 +20%
Net profit4,180 4,412 4,756 5,329 4,746 +14%4,368 −1%5,226 +10%6,297 +18%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Bajaj General Insurance
    ₹4,322 Cr GWP113.6% Combined Ratio18.5% ROE (ex-surplus capital)₹35,529 Cr AUM302% Solvency
  • Bajaj Life Insurance
    ₹2,550 Cr Retail Weighted Received Premium₹709 Cr VNB24.5% NBM— GWP₹1.34L Cr AUM₹73 Cr PAT266% Solvency
  • Bajaj Finance
    ₹1.29 Cr New Loans Booked₹5.00L Cr AUM₹14,209 Cr Net Total Income₹5,464 Cr PAT33.2% Opex to Net Total Income1% GNPA0.4% NNPA21.6% Capital Adequacy
  • Bajaj Housing Finance
    22.7% AUM Growth₹945 Cr Net Interest Income19.2% Opex to Net Total Income0.27% GNPA0.11% NNPA₹669 Cr PAT22.5% Capital Adequacy
  • Bajaj Finserv Health
    6.5 Mn Healthcare Transactions41.6% Revenue Growth
  • Bajaj Markets
    ₹2,047 Cr Disbursements₹95 Cr Operating Revenue
  • Bajaj Finserv Asset Management
    ₹26,819 Cr Closing AUM₹30,627 Cr Average AUM59% Equity Mix in AUM93.3% Non-group Share of AUM

Capital allocation

high confidence
  • M&A Allianz stake in insurance subsidiaries Acquisition · Closed · Consideration ₹[object Object] (cash)

    Strengthen ROE and ROEV, making insurance businesses 100% Bajaj-owned.

    Buyback for Bajaj General was close to INR 1,590 crores and for Bajaj Life was close to INR 1,200 crores. Expected to strengthen ROE and ROEV.

    I am happy to confirm that in March, our insurance subsidiaries, that is Bajaj General and Bajaj Life, have completed the buyback of the balance 3% Allianz stake, making our insurance businesses now 100% Bajaj- Made in India, Made for India, and Made by India. The buyback not only concludes the buyout of Allianz stake, but it also is expected to strengthen the ROE and ROEV of both the insurance subsidiaries going forward. Post the buyback, the 100.00% holding of the insurance subsidiaries by the Bajaj Group is split as follows: 77.33% is held by Bajaj Finserv, 18.10% by Bajaj Holdings, and about 4.60% by Jamnalal Sons Private Limited. ... which for the general insurance company was close to INR1,590 crores. ... which for Bajaj Life was close to INR 1,200 crores.

Guidance & targets

Product Mix

  • Bajaj Life Product Mix Product Mix · ongoing · Medium confidence PAR ~25%, non-par savings/annuity ~25-30%, term ~10%+, ULIP ~40%
    So while all of that is there, in terms of product mix, we have always maintained that we would want to have, you know, a PAR at about 25% plus-minus, annuity plus non-par savings again in the 25% to 30% range, term we would aspire to be 10% plus, and ULIP will be about 40%.

    — Vipin Bansal

Profitability

  • Bajaj Finserv Asset Management Break-even AUM Profitability · future · Medium confidence INR 1 lakh crores
    So on the AMC side, what I would say is, the break-even AUM for us would be close to about INR1 lakh crores, with the continued mix on equity versus debt versus passives.

    — Ganesh Mohan

  • Bajaj Finserv Health Operating Break-even Profitability · within 24 months · Medium confidence Operating break-even
    And what we did in our LRS was that, you know, I think 24 months from now we should start seeing an operating break-even. That's where we stand today.

    — Ramandeep Sahni

Other

  • Bajaj Finserv Asset Management New Business Lines Other · within next 1-1.5 years · High confidence Launch PMS and SIF
    At this point, we are actively considering both the PMS as well as the SIF, so within the next one, one and a half years, we will be launching both of these business lines.

    — Ganesh Mohan

Revenue

  • Bajaj Markets Revenue Revenue · FY27 · Medium confidence Revenues back on track
    But the revenues are coming back onto track in FY'27 as per our plan.

    — Ashish Panchal

What to watch in Q1 FY27

Bajaj Finserv Health Break-even Progress

within 24 months
Current Growing revenue at 41.6% YoY, but not yet profitable
Target Operating break-even

Why it matters

Key milestone for an emerging business, indicating profitability and operational efficiency.

I think it is the point at which the operating efficiency starts kicking in. And what we did in our LRS was that, you know, I think 24 months from now we should start seeing an operating break-even. That's where we stand today.

Risks & concerns

  • Temporary MTM Impact on Financials

    medium

    Geopolitical tensions caused temporary mark-to-market (MTM) losses on investments held by insurance companies, impacting reported revenue and PAT.

    Management acknowledged

  • Elevated Underwriting Losses in General Insurance

    medium

    Higher claims from government health business and reduced crop/motor business due to pricing pressures led to increased underwriting losses.

    Management acknowledged

  • Life Insurance Persistency Dips

    medium

    Persistency rates declined across certain cohorts, attributed to 'early gratification products' in the market, though management is working to restore levels.

    Management acknowledged

  • IFRS 17 Implementation Delay

    medium

    Ambiguity in IRDAI regulations and lack of clarity on assumptions for IFRS 17 reporting has led to a delay in transition for insurance companies until FY27.

    Management acknowledged

Q&A highlights

8 direct
Life Insurance VNB Margin Trajectory and Product Mix Direct
So while all of that is there, in terms of product mix, we have always maintained that we would want to have, you know, a PAR at about 25% plus-minus, annuity plus non-par savings again in the 25% to 30% range, term we would aspire to be 10% plus, and ULIP will be about 40%.

Management provided specific target product mix percentages, indicating their strategy for sustainable and profitable growth in life insurance.

Asked by Prayesh Jain

AMC Break-even AUM and New Segments Direct
So on the AMC side, what I would say is, the break-even AUM for us would be close to about INR1 lakh crores, with the continued mix on equity versus debt versus passives. At this point, we are actively considering both the PMS as well as the SIF, so within the next one, one and a half years, we will be launching both of these business lines.

Quantified the AUM required for break-even and outlined concrete plans for launching new product lines (PMS, SIF) within a clear timeline.

Asked by Prayesh Jain

Bajaj Finserv Health Break-even Timeline Direct
I think it is the point at which the operating efficiency starts kicking in. And what we did in our LRS was that, you know, I think 24 months from now we should start seeing an operating break-even. That's where we stand today.

Provided a specific timeline of approximately 24 months for Bajaj Finserv Health to achieve operating break-even, a key profitability milestone for an emerging business.

Asked by Nischint Chawathe

Bajaj Direct Loan Quality Concerns Direct
But anyways, we are insulated from any balance sheet and P&L impact of such risk behaving adversely in the manufacturer's portfolio. Having said that, we choose our manufacturer partners very, carefully and therefore our volumes are not affected and hence revenue is not affected.

Clarified that Bajaj Direct, as a distributor, is insulated from the balance sheet and P&L impact of adverse loan quality in manufacturers' portfolios, mitigating concerns about credit risk.

Asked by Shreya Shivani

Life Insurance Persistency Trends Direct
Overall if you look at it, there was a set of products which were introduced by a few market leaders about 12 to 18 months back. These products were early gratification products for the customer, and we did see people then not continuing once they did get benefits already available. ... As far as we're concerned, we've stopped selling this product and since October have anyways been bringing it down.

Explained the industry-wide persistency dips as a result of 'early gratification products' and stated Bajaj Life's proactive measure of stopping the sale of such products.

Asked by Nidhesh Jain

IFRS 17 Implementation Delay Direct
See, Nischint, as you know that there is a lot of ambiguity around certain assumptions which one has to take while drawing the IFRS numbers. For example, level of aggregation, currently also, different companies who are reporting to IRDAI are following different methodologies. ... And hopefully from 1st of April, '27, you will see most of us start publishing the numbers.

Provided a detailed explanation for the delay in IFRS 17 adoption, citing regulatory ambiguity and lack of standardization, and indicated a likely transition for most players by April 2027.

Asked by Nischint Chawathe

General Insurance Product Mix and Profitability Outlook Direct
Our philosophy remains the same. We are a company which would be there for 100s of years, it is not a company which we are looking at a short term in terms of making it up. So it will always be prudent underwriting, it will always be our customer offsets, it will always find opening in the market, where to grow and keep on growing.

Reiterated the company's long-term strategy of prudent underwriting and disciplined growth in general insurance, prioritizing sustainability over short-term market share gains.

Asked by Prayesh Jain

Life Insurance Non-Par Savings Market Dynamics Direct
The market has actually looked at higher-age customers coming in, and which is where, I mean the way we look at the market is when the higher-age customers would rather have more annuities than have medical based products. And we are seeing a consistent shift in the market towards annuity...

Provided insights into the evolving market dynamics for non-par savings, highlighting a shift towards annuities driven by higher-age customers and tax benefits for smaller ticket sizes.

Asked by Shreya Shivani

2 min read 5 chapters

Detailed narrative

Consolidated Performance and MTM Impact

Bajaj Finserv reported a consolidated total income of ₹38,508 crores for Q4 FY26, a 6% increase YoY, and a PAT of ₹2,539 crores, up 5% YoY. However, these figures were significantly impacted by temporary mark-to-market (MTM) losses on investments due to geopolitical tensions. Excluding this MTM impact, the adjusted total income growth was 14% and adjusted PAT growth was a robust 24%, highlighting underlying healthy performance.

Insurance Business Highlights (General & Life)

Bajaj General Insurance saw muted GWP growth at ₹4,322 crores, primarily due to tactical decisions to reduce exposure in crop and motor segments. Underwriting losses increased to ₹96 crores, and the combined ratio stood at 113.6%. Bajaj Life Insurance demonstrated strong growth, with VNB increasing 29% YoY to ₹709 crores and Net Business Margin (NBM) expanding to 24.5%. Retail weighted received premium grew 9.7% to ₹2,550 crores, and GWP increased 21% YoY. Both insurance entities completed the buyback of Allianz's 3% stake, making them 100% Bajaj-owned, with Bajaj General's buyback at ₹1,590 crores and Bajaj Life's at ₹1,200 crores.

Lending Business Performance (Bajaj Finance & Housing Finance)

Bajaj Finance continued its strong trajectory, with AUM growing 22% YoY to cross ₹5 lakh crores, and PAT reaching ₹5,464 crores. New loans booked increased 20% YoY to 1.29 crores. Asset quality remained healthy with GNPA at 1.01% and NNPA at 0.4%. Bajaj Housing Finance also reported a strong quarter, with AUM growth of 22.7% and PAT of ₹669 crores (up 14% YoY, or 20% adjusted for tax credit). Its asset quality was robust with GNPA at 0.27% and NNPA at 0.11%.

Emerging Businesses (Health, Markets, AMC)

Bajaj Finserv Health recorded a healthy 41.6% YoY revenue growth and 6.5 million healthcare transactions. Bajaj Markets (Bajaj Finserv Direct) saw disbursements of ₹2,047 crores but operating revenue de-grew to ₹95 crores due to a planned system migration and compliance with RBI DLD guidelines, with revenues expected to be back on track in FY27. Bajaj Finserv Asset Management's average AUM grew 52% YoY to ₹30,627 crores, with plans to launch PMS and SIF within 1-1.5 years and a break-even AUM target of ₹1 lakh crores.

Strategic Initiatives and Regulatory Landscape

The company completed the acquisition of Allianz's remaining 3% stake in its insurance joint ventures, consolidating ownership and aiming to strengthen ROE and ROEV. Bajaj Finserv is also exploring new avenues through Bajaj Alternatives, including listed equity and a GIFT City structure. The transition to IFRS 17 for insurance companies has been deferred to FY27 due to ongoing ambiguity in regulatory guidelines and assumptions, with most industry players also seeking forbearance.

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