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    Bajaj Finserv

    BAJAJFINSV
    Financial Services·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

    6

    • 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

    4

    • 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

    Single quarter

    06 metrics
    1. 01Consolidated Total Income₹38,508 Cr+6%YoY
    2. 02Consolidated PAT₹2,539 Cr+5%YoY
    3. 03Bajaj Finance AUM₹5.00L Cr+22%YoY
    4. 04Bajaj Life VNB₹709 Cr+29.0%YoY
    5. 05Bajaj General Combined Ratio113.6%

    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₹1.3L Cr AUM₹73 Cr PAT266% Solvency
    Bajaj Finance
    ₹1.29 Cr New Loans Booked₹5.0L Cr AUM₹14,209 Cr Net Total Income₹5,464 Cr PAT33.2% Opex to Net Total Income101% GNPA40% NNPA21.6% Capital Adequacy
    Bajaj Housing Finance
    22.7% AUM Growth₹945 Cr Net Interest Income19.2% Opex to Net Total Income27% GNPA11% 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
    List

    Capital allocation

    1
    high confidence
    CategoryHeadline
    M&A

    Allianz stake in insurance subsidiaries

    acquisition · closed · Consideration ₹NaN (cash)

    Guidance & targets

    5
    CategoryTargetPriority
    Product Mix
    Bajaj Life Product Mix
    PAR ~25%, non-par savings/annuity ~25-30%, term ~10%+, ULIP ~40%
    		Medium
    Profitability
    Bajaj Finserv Asset Management Break-even AUM
    INR 1 lakh crores
    		Medium
    Profitability
    Bajaj Finserv Health Operating Break-even
    Operating break-even
    		Medium
    Other
    Bajaj Finserv Asset Management New Business Lines
    Launch PMS and SIF
    		High
    Revenue
    Bajaj Markets Revenue
    Revenues back on track
    		Medium

    Bajaj Finserv Health Break-even Progress

    within 24 months
    CurrentGrowing revenue at 41.6% YoY, but not yet profitable
    TargetOperating 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.

    How to verify

    guidance_and_targets[metric='Operating break-even', category='Profitability']

    Risks & concerns

    4
    RiskSeverity

    Temporary MTM Impact on Financials

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

    medium

    Elevated Underwriting Losses in General Insurance

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

    medium

    Life Insurance Persistency Dips

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

    medium

    IFRS 17 Implementation Delay

    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

    medium

    Q&A highlights

    8

    “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

    2 min read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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%.

    04

    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.

    05

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.