Bajaj Finance Ltd

Bajaj Finance Limited reported strong Q2 FY27 results, with AUM growing 26.5% to INR 5.84 lakh crores and PBT increasing 29% to INR 8,537 crores. PAT rose 29% to INR 6,367 crores, with ROA at 4.6% and ROE at 20.6%. New loans grew 11% to 13.5 million, and customer additions reached 4.5 million, bringing total customers to 129 million. The company emphasized secular growth across all business lines, including a 43% rise in urban consumer finance and 63% in rural consumer finance. Gold loan portfolio expanded to INR 24,000 crores, with 2,022 branches and plans to reach 2,800 by year-end. Credit quality metrics showed improvement, with loan loss to average AUF at 1.56%, though a macroeconomic overlay of INR 337 crores was recognized. Management highlighted strategic initiatives like AI deployment, with 328 AI specialists and 75% of DIY customer service handled by bots. Capital raising plans of INR 11,700 crores were announced, driven by growth opportunities and sustainability of ROA/ROE targets. The company also discussed cautious approaches to short-term gold loans and potential regulatory impacts on insurance and revolver loans, while maintaining focus on long-term resilience and organic growth.

The document emphasizes strong financial performance, growth across business segments, and strategic initiatives, reflecting a positive tone.