Bajaj Finserv — Q4 FY26
Bajaj Finserv's Q4 FY26 consolidated results were impacted by temporary MTM losses from insurance investments, with reported revenue growth of 6% to ₹3,858 crore and PAT growth...
neutral
medium
✓ 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.
42%Questions answered4Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Life insurance non-par savings mix and pricing pressure; general insurance TP release; Bajaj Direct loan quality concerns.
Asked by Shria Shivani, Nomura
Management gave qualitative context but did not directly address pricing pressure, quantify TP release, or detail tightening measures.
no specific pricing pressure commentno quantification of TP release changeno specific tightening measures
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Question
First is on the life insurance entity. Nonpar savings mix has reduced. Was there any pricing pressure? My second question is on the general insurance piece. The reserving triangles look like the release in TP in FI26 has been higher. This is on Bajage Direct. Are there any measures we are taking to tighten anything from our end?
Whippin (or Taron) and Ashish
See nonpar the way we see it as a bucket of nonpar plus annuities. Our annot actually doubled from 5% to 10% in the financial year. Overall nonpar did come down from 21 to 16 but overall if you look at it we are 26 to 26% in both these casts. TP release is a factor of how the book develops. I don't see any change in the philosophy. As a marketplace we get a ringside view of the prevailing risk. We are insulated from any balance sheet and P&L impact.
Evasive
High priority
General insurance product mix and profitability outlook for FY27.
Asked by Prayen, Muzlal Oswan
Management gave general philosophy but no specific product mix or profitability outlook for FY27.
no specific product mix guidanceno profitability targetdeferred to market conditions
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Question
Just wanted to understand on the general insurance front how do you see the product mix evolving and the overall profitability of the entity going ahead into FY27.
Tapan
If you look at last year the industry combined ratio actually moved up by about 6 to 7%. Bajaj General combined ratio was 1.5% last year. We in places where we felt the pricing is not appropriate we go slow. Next year it again depends on how the industry moves. Our philosophy remains the same.
Partial answer
High priority
Life insurance VNB margin trajectory and product mix for FY27.
Asked by Prayen, Muzlal Oswan
Management gave directional margin improvement and target product mix but did not provide specific VNB margin or ENV margin numbers.
no specific VNB margin number givenno ENV margin guidance
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Question
On life insurance, VNB margin trajectory from here on, what ENV margin should we think and what product mix targeting for FY27? Do you think the product mix trajectory will continue and margins can continue to improve?
Tapan and Ven
Directionally all our product segments are now profitable. ULIP is now profitable. We expect the trajectory of term to only increase from here on. That should impact our VNB margins only positively. In terms of product mix, we would want par at about 25% plus minus, annuity plus non-par savings 25 to 30%, term 10% plus, and ULIP about 40%.
Answered
Medium priority
AMC business break-even AUM scale and new segments like PMS, AIF.
Asked by Prayen, Muzlal Oswan
Management provided a specific AUM target for break-even and confirmed plans for PMS and SIF launches.
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Question
At what scale of AUM do you think this business will break even and what should be the target from a break even perspective? What are the new segments you are investing in like PMS, AIF, SIS?
Tapan
The break even for us would be close to about one lakh crores with the continued mix on equity versus debt versus passes. We are actively considering both the PMS as well as the SIF. Within the next one to one and a half years we will be launching both these business lines.
Evasive
High priority
Life insurance VNB margin for FY27 given GST mitigation and 22% margin walk.
Asked by Sankit Koda, Evan Despar
Management declined to confirm a specific margin percentage for FY27 despite being asked directly.
refused to confirm margin numberno specific guidancedeferred to directional trajectory
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Question
If the margin for the year was at 22% and you said most of the GST negative impact has been mitigated, is it fair to say that next year we will end up reporting a 22 kind of margin?
Ven and Tapan
When we say we have mitigated, for the month of March we have mitigated almost 90-92% of the GST impact. The residual impact of 300 crores does exist. We will not hear any affirmation or otherwise from us on margins if you're going to indicate like this. Directionally we can tell you we are in a positive trajectory.
Partial answer
Medium priority
Life insurance growth trajectory and agency channel contribution.
Asked by Sankit Koda, Evan Despar
Management gave directional growth improvement but did not quantify or confirm agency as main driver.
no specific growth numberno confirmation of agency as primary driver
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Question
Our growth came back to around 15% in second half. Is it fair to say this is the kind of growth we will end up and the heavy lifting will be done by agency channel?
Tapan
You should see a better growth than what we saw in our second half. All our businesses are now in a growth trajectory. On the agency side, we recorded 8% growth Q4 for the last two quarters. You should expect it to be better. The trajectory is only positive.
Answered
Medium priority
Life insurance EV assumption change of 51 crores related to which parameter.
Asked by Sankit Koda, Evan Despar
Management directly attributed the assumption change to persistency dip.
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Question
The assumption change of 51 crores is predominantly related to which operating parameter, whether mortality or persistency?
Ven
On a portfolio basis assumptions are holding good. You would see there has been a dip in our persistency and that's what largely reflected in assumption change.
Evasive
Medium priority
General insurance reinsurance strategy and retention levels.
Asked by Sankit Koda, Evan Despar
Management did not address whether retention levels would be revisited, instead gave general reinsurance philosophy.
no specific retention targetno commitment to changedeflected to combined ratio
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Question
Our reinsurance retentions are closer to 40 to 43%. Even if I exclude government business, we are a little higher on ceding business. Will we revisit this strategy?
Tapan and Raman
Reinsurance is not a strategy. It is how you build your book. Wherever you see volatility or large risks, you reinsure. The approach does not change. Our combined ratio vis-a-vis industry will answer that question.
Partial answer
Medium priority
General insurance competitive intensity in motor and group health.
Asked by Tij Punjabi, Ban Tree Advisor
Management acknowledged competitive intensity but gave no specific data on how it affects Bajaj General.
no specific market share or pricing datano quantification of impact
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Question
How are we seeing the competitive intensity playing out in motor and group health lines of business?
Tapan
The combined industry ratio moved up by about 7 percentage points. Yes there is competitive intensity in some businesses like motor, GMC, even fire. We slow down in places where pricing is not appropriate. We have no pressure of EM, we just write business where it makes sense.
Declined
Medium priority
Life insurance impact of expected change in commission structure.
Asked by Tij Punjabi, Ban Tree Advisor
Management declined to comment due to lack of regulatory communication.
no information availabledeferred to regulatory clarity
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Question
How are we looking at the expected impact of the change in the commission structure that is expected to come in the next few months?
Tapan
We haven't yet received any message from IRDA. There is no draft circular yet. It's really very difficult to say anything beyond this at this point.
Partial answer
Medium priority
Strategy on Bajaj Alternatives and $1 billion fund raise.
Asked by Tij Punjabi, Ban Tree Advisor
Management discussed strategy but did not confirm the $1 billion fund raise or provide details on fund size.
no confirmation of $1 billion fund raiseno specific timeline for fund raise
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Question
What is our strategy on the alternative business? There was some news around Bajaj Alternatives looking to raise about $1 billion.
Tapan
This was one of the white spaces we had identified. We've built up the team. We are planning to start the PMS part. We should launch listed equity PMS very soon. We're trying to launch CAT 2 and CAT 3 AIFs. In the next two quarters we will start rolling out new products.
Partial answer
High priority
Life insurance persistency decline and industry trends.
Asked by Nitesh Jen, Invest
Management explained the cause but did not provide specific persistency rates or future trend expectations.
no specific persistency numbersno forward guidance on trends
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Question
On persistency, what is happening at the industry level and for you? After improving post-COVID, this year we are seeing decline across companies. How do you see persistency trends going forward?
Tapan
There was a set of products introduced by a few market leaders about 12 to 18 months back. These were early gratification products. We have stopped selling this product and since October have been bringing it down. It has impacted profitability no more because the persistency was already baked in.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Agency growth 8% in Q4 for last two quarters | 8% | 6% | Overstated vs filing |
| Health growth 30% in Q4 vs industry 18.1% | 30% | 6% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.