Bajaj Finserv — Q1 FY26
Bajaj Finserv reported a strong Q1 FY26 with consolidated PAT up 30% YoY to INR 2,789 crore, driven by robust performance across insurance and lending subsidiaries.
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.
40%Questions answered4Evaded / deflected10Questions audited
Partial answer
High priority
On BAGIC: growth in motor TP and Fire despite competition; on BALIC: agency channel growth and product mix.
Asked by Swarna Mukherjee, B&K Securities
Management gave general commentary but avoided specifics on micro-markets or price hike timeline.
no specific micro-market detailsno quantification of price hike timing
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Question
In BAGIC, I just wanted to understand that we have seen some strong growth in areas like motor TP and Fire... I just wanted to know your thoughts on what are you seeing in the market... In terms of BALIC, I just wanted to understand that I think this is possibly the third consecutive quarter that I'm, I think the agency channel seems to be growing on a year-on-year basis.
Tapan Singhel (Managing Director and CEO, Bajaj Allianz General Insurance Company Limited)
If you look at our company, I think competition has always been there... we don't have in the dimensions business, there's nothing called winner takes it all... our feeling is not for the past, what, three-four years, as we know, price hike at all.
Evasive
High priority
On BAGIC: whether combined ratio can return below 100%.
Asked by Swarna Mukherjee, B&K Securities
Management reiterated aspiration but gave no concrete guidance on returning below 100%.
no commitment to below 100%no timeline givenvague 'close to 100'
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Question
At one point of time, I think Bajaj General is known for their best-in-class operating profitability. Combined ratio has been for many years under 100%. Now we are seeing that this number generally creeps up ahead of 100%, maybe 101, 102. Should we think this as a steady state... or is there any scope that we can go back to a less than 100% scenario over the next two, three years?
Tapan Singhel (Managing Director and CEO, Bajaj Allianz General Insurance Company Limited)
The endeavor for our company is to always maintain a combined ratio close to 100, is what I've always mentioned over time. That is what it remains... Now, will it be below 100? Will it be over 100? I think that as the business and things progress, that will always be close to 100.
Answered
High priority
On BALIC: reason for margin delta of 400 bps vs product mix shift of 300 bps.
Asked by Supratim Datta, Ambit Capital
Management directly attributed margin delta to both product mix and structural changes.
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Question
Now, we have seen the product mix shape with the share of protection going up by 300 basis points. But the margin delta corresponding to that product mix shape seems to be 400 basis points. Just wanted to understand, is it only product mix driven or has the product structures themselves changed?
Tarun Chugh (Managing Director and CEO, Bajaj Allianz Life Insurance Company Limited)
The product mix, of course, with term coming in, gets to be a very useful piece from a profitability perspective. 30% of our customers in agency now are added through term. We have changed product structures significantly, as in, and I'd like to underline, significantly. Whether it's the ULIPs, ULIPs or non-par plans as well.
Evasive
High priority
On BAGIC: motor TP growth and loss ratio improvement sustainability.
Asked by Supratim Datta, Ambit Capital
Management acknowledged growth but declined to provide specifics on segments or sustainability.
refused to give segment detailsno sustainability outlook
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Question
On motor TP, we have seen previously you were conservative for one year. Now there is growth that has come back, and the loss ratios there also seem to be better than what we were expecting. What is happening there, and which are the segments where you are seeing this into profitability and growth potential?
Tapan Singhel (Managing Director and CEO, Bajaj Allianz General Insurance Company Limited)
To give you a precise answer in terms of what in TP that we would be doing, that I do not think that on a call I would be talking about. Yes, what you have observed is that you have seen our motor TP market share move up. At the same time, as I mentioned to you, you will see our crop market share over time come down for this.
Partial answer
High priority
On BALIC: reason for term business margin being 2-3x peers, channels and ticket size.
Asked by Nischint Chawathe, Kotak
Management gave ticket size and channels but did not explain why margins are higher than peers.
no explanation for margin differential vs peersno sum assured data
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Question
On the face of it, it appears that your term business margin is probably 2x-3x of what maybe some of the other peers are reporting. Just curious, which channels are you reporting, selling this product through? If you could give some color on ticket size and sum assured over here.
Tarun Chugh (Managing Director and CEO, Bajaj Allianz Life Insurance Company Limited)
We moved up our average premium for the face-to-face channels. It is very different from online channels at approximately INR 30,000-INR 35,000, depending upon which channel is selling it. In terms of which channels are selling, I would say it is agency and institutional business.
Declined
Medium priority
On BAGIC: health loss ratio breakup between group and individual.
Asked by Nischint Chawathe, Kotak
Management explicitly refused to provide the requested breakdown.
refused to provide breakup
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Question
In the health side, if you could give us a breakup of loss ratios between group and individual.
Tapan Singhel (Managing Director and CEO, Bajaj Allianz General Insurance Company Limited)
No, we do not do that. I think this question I have answered many times, that I do not get into micro loss ratio declaration because that will give us business strategies and listing.
Evasive
High priority
On BALIC: full year growth expectation and margin delta sustainability.
Asked by Sanketh Godha, Avendus Spark
Management refused to provide quantitative forward guidance on growth or margin.
declined forward guidanceno specific growth or margin number
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Question
How much growth we can expect to play out for the full year in life insurance, given the second half reversal is expected to happen?... Is it fair to say that you are 14.5, what you exited for the full year? We can experience a similar number to play out for the entire year?
Tarun Chugh (Managing Director and CEO, Bajaj Allianz Life Insurance Company Limited)
I cannot give a forward-looking statement, as you're aware, Sanketh... I think you should expect term to largely remain in this ballpark and not go up any further.
Partial answer
Medium priority
On BAGIC: outlook for government tender-based business and capital gains quantification.
Asked by Sanketh Godha, Avendus Spark
Management gave qualitative outlook on tenders but quantified capital gains directly.
no specific tender revenue outlookcapital gains quantified
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Question
Just wanted to understand your outlook on tender-based businesses... whether a similar number can be expected in government tender-based businesses in the current year... Second, a data-keeping one, if you can quantify your capital gains in the quarterly to the SBC.
Tapan Singhel (Managing Director and CEO, Bajaj Allianz General Insurance Company Limited) and Anckur Kanwar (CFO, Bajaj Allianz General Insurance Company Limited)
We are not somebody who, in desperation, would do business just for the sake of pushing up a top line... I cannot give an exact answer in terms of how much tender business we shall be getting... On capital gains, we have booked a capital gain around INR 450 crore coming from both debt and equity.
Partial answer
Medium priority
On BAGIC: reasons for increase in net commission and expense ratio, and motor TP loss ratio reduction.
Asked by Shobhit Sharma, HDFC Securities
Management gave directional explanation but no quantitative details or specific drivers.
no specific numbers for commission rationo explanation for loss ratio reduction
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Question
In the combined ratio, if you can help us understand what has led to a significant increase in the net commission and the expense ratio. Secondly, coming to the motor TP side, there is a significant reduction in the loss ratio. Can you help us understand what has led to this lower loss ratio?
Tapan Singhel (Managing Director and CEO, Bajaj Allianz General Insurance Company Limited)
On the acquisition cost movement, when you acquire a business which is comfortable and profitable, there would be a strain on acquisition cost... On TP, I think you should look at TP loss issues in a year-long period, not on a quarterly basis.
Answered
Medium priority
On BALIC: cost rationalization measures and drop in 13th/14th month persistency.
Asked by Shobhit Sharma, HDFC Securities
Management detailed cost actions and explained persistency drop due to experiments.
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Question
Can you help us understand the measures which you have taken on the cost rationalization side, and how should we think about it going forward? Secondly, can you please help us understand why there is a drop in the 13th and 14th months' purchase?
Anckur Kanwar (CFO, Bajaj Allianz General Insurance Company Limited)
On the cost side, the action actually has been a 360-degree action... There has been reduction in variable and R&R spends... There has been reduction in fixed costs... Your next question was on the latter cohorts. Yes, there are a few experiments we run...