Bajaj Finserv — Q2 FY26
Bajaj Finserv reported a solid Q2 FY26 with consolidated total income up 11% to ₹37,400 crore and PAT up 8% to ₹2,244 crore (12% ex-MTM).
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
54%Questions answered3Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Breakup of 140 bps GST impact on NBM and mitigation plans.
Asked by Mehak Rohra, Emkay Global
Management provided a clear quantitative breakup of the 140 bps impact.
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Question
We just wanted to understand the breakup of this 140 basis points impact on NBM margin, which is on account of GST. If you could just help us with the breakup between the renewal and the business done after 22nd September... Secondly, how do you look to kind of mitigate the impact of GST ITC losses?
Vipin Bansal, CFO, Bajaj Life Insurance
On H1 basis, the impact on NBM is 140 basis points on account of GST. 50 basis points of this impact is backbook... Rest, 90 basis points is for the business that was written from 22nd September- 30th September.
Partial answer
High priority
Mitigation of GST ITC impact on margins.
Asked by Mehak Rohra, Emkay Global
Management described actions but gave no quantitative mitigation targets.
no specific numbersdeferred to future
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Question
How do you look to kind of mitigate the impact of GST ITC losses? Will you kind of revise these distributor commissions, or how do you plan to mitigate this impact?
Ramandeep Sahni, CFO, Bajaj Finserv Ltd
Some actions we have already taken on... product structures and product mixes... We are also in discussion with distribution on how to take this burden of GST... We expect another two quarters for settling this entire process.
Answered
High priority
Breakdown of 7% margin improvement drivers.
Asked by Sanketh Godha, Avendus Spark
Management provided a clear quantitative breakdown of margin drivers.
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Question
If I want to break down this 7% delta improvement in the margin, if you can give a bit of color, how much was led by product mix, cost rationalization, and maybe better margin profile of the products?
Vipin Bansal, CFO, Bajaj Life Insurance
Cost would be about 100-125 basis points. Product mix would be about 400 basis points. That is broadly, I could talk to you about 500-525 basis points. I think rest would be multiple line items there.
Evasive
High priority
Full-year margin outlook after GST impact.
Asked by Sanketh Godha, Avendus Spark
Management declined to give a specific full-year margin forecast.
no number givendeferred to future
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Question
If I take an annualized impact of 450 basis point on the margin, is it safe to say that we will end up at a high-teen margin for the full year?
Vipin Bansal, CFO, Bajaj Life Insurance
I would not want to hazard a guess whether it will be 4%, 6%, or 7% margin expansion... I think probably two quarters, we will have this noise or impact of GST.
Partial answer
High priority
Growth outlook for BALIC in H2.
Asked by Sanketh Godha, Avendus Spark
Management indicated growth will pick up but gave no quantitative range.
no specific growth numbervague guidance
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Question
Can we expect growth to come back in teens for you in the second half, or will the disruptions with respect to GST renegotiating commissions have their own bearing?
Ramandeep Sahni, CFO, Bajaj Finserv Ltd
The studied strategy that we had on a flattish four quarters is over... Here on, you should see a significant trajectory on growth. I would, at this point, not hazard a guess, but it would be above the industry.
Partial answer
Medium priority
Motor OD vs TP growth divergence and TP loss ratio sustainability.
Asked by Sanketh Godha, Avendus Spark
Management explained the divergence but did not directly address loss ratio sustainability.
no specific timeline for price hikeno loss ratio sustainability comment
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Question
When I look at motor business, there seems to be a significant divergence when it comes to OD growth and TP growth... given the TP growth is very strong, no price hike, and this loss ratio, what you are reporting around 59% in TP is really sustainable or not?
Tarun Chugh, MD and CEO, Bajaj Life Insurance Ltd
We look at our TP market share had become lower than what our OD market share was... we are trying to get that to be where it is. On the price hike of TP, for quite many years, it did not happen... it should happen very soon.
Evasive
Medium priority
Group health and retail health growth outlook for H2.
Asked by Sanketh Godha, Avendus Spark
Management gave no specific growth outlook, only conditional statements.
no growth guidanceconditional on market
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Question
The group health, PA and retail health growth being muted in first half... can we expect the growth to go back in high teens to 20s in two weeks?
Tarun Chugh, MD and CEO, Bajaj Life Insurance Ltd
If the market does not give an opportunity to pick up risk at our price... then we do not do that... To tell that whether in the next half we will pick it up or not pick it up, it will all depend on the market and the pricing.
Answered
High priority
Sustainability of protection growth and margin outlook.
Asked by Madhukar Ladha, Nuvama Wealth Management
Management confirmed sustainability and provided qualitative confidence.
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Question
I wanted to understand what is driving it and how sustainable, in your opinion, is this growth and protection... Some comments around whether this has continued in October and how you would see this in the second half will be helpful.
Ramandeep Sahni, CFO, Bajaj Finserv Ltd
We've been able to get the product mix altered significantly... we will be holding this product mix broadly in the medium term... there is still room in that direction, and you will see that in the next 18 months.
Evasive
Medium priority
Plans to list life and general insurance businesses.
Asked by Nidhesh Jain, Investec India
Management gave no timeline or indication of listing plans.
no commitmentdeferred to future
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Question
Any plans to list these companies separately given that in the past we have heard that there is a regulatory push also to list larger life insurance and general insurance companies?
S Sreenivasan, President of Insurance and Special Projects, Bajaj Finserv Ltd
I don't think in the next two, three years we are seeing anything. We have other developments in the industry... We will wait for all these to play out before we take a view on what to do with this.
Partial answer
Medium priority
Reasons for combined ratio above 100% and medium-term outlook.
Asked by Nidhesh Jain, Investec India
Management explained reasons but did not commit to a below-100% target.
no specific timeline for below 100%deflected to industry comparison
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Question
In the last couple of years, the combined ratio has been consistently above 100%. What are the reasons for that, and how do you see the possibility of combined ratio below 100% over the medium term?
Tarun Chugh, MD and CEO, Bajaj Life Insurance Ltd
Bajaj has been beating the industry combined ratio by a full 15 percentage points... When you acquire businesses which have acquisition costs being paid upfront, the accounting puts it like that.
Answered
Medium priority
Motor OD loss ratio increase and trend reversal.
Asked by Nidhesh Jain, Investec India
Management clearly stated it is a blip and will normalize by year-end.
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Question
In the motor business, I have noticed that motor OD loss ratios have increased to 71%... Any trend reversal in this business or just a quarterly blip?
S Sreenivasan, President of Insurance and Special Projects, Bajaj Finserv Ltd
It is just a quarterly blip. We will come down by the year end, is what we believe. With all the actions we are taking, we will come down to normal levels for full year.
Partial answer
Medium priority
Dividend policy from life insurance to parent.
Management explained current constraints but gave no future dividend policy.
no commitmentdeferred to post-transaction
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Question
Does it make sense to have a dividend policy? Will that lead to some correction in the capital adequacy? How do we see that aspect from a parent perspective?
Ramandeep Sahni, CFO, Bajaj Finserv Ltd
The two insurance companies have been paying dividends since 2018... This year, obviously, we could not take any dividends because we are in the midst of a change in shareholding... Once that is completed, we will review that.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| GST impact on PAT is INR 112 crore. | ₹112 cr | ₹4,746 cr | Understated vs filing |
| INR 73 crore of PAT impact is backbook one-time. | ₹73 cr | ₹4,746 cr | Understated vs filing |
| INR 39 crore of PAT impact is recurring for new business. | ₹39 cr | ₹4,746 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.