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View Claim Ledger →Bajaj Finserv — Q2 FY26
Bajaj Finserv reported a solid Q2 FY26 with consolidated revenue up 11% to INR 37,400 crore and PAT up 8% to INR 2,244 crore (12% ex-MTM).
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Bajaj Finserv reported a solid Q2 FY26 with consolidated revenue up 11% to INR 37,400 crore and PAT up 8% to INR 2,244 crore (12% ex-MTM). The life insurance arm was the standout: VNB surged 50% to INR 367 crore and NBM expanded to 17.1% (from 10.8% last year), driven by product mix shift and cost optimization. General insurance GWP grew 9% (13.6% ex-one-off), though combined ratio remained above 100% at 102.3% due to upfront acquisition costs. Lending subsidiaries (BFL, BHFL) delivered strong AUM growth of 24% each with stable asset quality. Management guided for life insurance growth to re-accelerate in H2 and expects to mitigate GST ITC impact over two quarters. Key risk: elevated credit costs in unsecured MSME and two/three-wheeler segments at BFL.
बजाज फिनसर्व ने दूसरी तिमाही में अच्छा प्रदर्शन किया। कुल कमाई 11% बढ़कर 37,400 करोड़ रुपये और मुनाफा 8% बढ़कर 2,244 करोड़ रुपये रहा। जीवन बीमा कारोबार ने सबसे अच्छा प्रदर्शन किया - नए बिजनेस का मुनाफा 50% बढ़कर 367 करोड़ रुपये और मार्जिन 10.8% से बढ़कर 17.1% हो गया। सामान्य बीमा का प्रीमियम 9% बढ़ा, लेकिन खर्च अधिक होने के कारण क्लेम अनुपात 100% से ऊपर रहा। कर्ज देने वाली कंपनियों का कारोबार 24% बढ़ा और कर्ज वसूली स्थिर रही। कंपनी को उम्मीद है कि जीवन बीमा में दूसरी छमाही में तेजी आएगी। मुख्य जोखिम: छोटे कर्ज और दोपहिया/तीनपहिया वाहन कर्ज में डिफॉल्ट बढ़ सकता है।
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Elevated credit costs in unsecured MSME and two/three-wheeler segments
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Life Insurance VNB
INR 367 crore
+50% YoY
Highest-ever reported VNB for Bajaj Life, driven by product mix shift and cost optimization.
Life Insurance NBM
17.1%
+630bps YoY
New business margin expanded sharply from 10.8% last year, despite 140bps GST impact.
General Insurance GWP Growth (ex-one-off)
13.6%
+13.6% YoY
Underlying growth healthy, driven by profitable commercial lines and motor expansion.
BFL New Loans Booked
1.2 crore
+26% YoY
Strong volume growth across diversified business model, with AUM up 24%.
What Changed vs Last Quarter
NEW
Life insurance growth to re-accelerate in H2
After four quarters of flattish top line, management expects significant growth trajectory above industry from Q3 onwards, supported by GST tailwinds.
NEW
GST ITC impact to be mitigated in two quarters
Management expects to manage the GST input tax credit burden through product restructuring and distributor negotiations within the next two quarters.
NEW
Life insurance margin expansion of 4-6% for FY26 (pre-GST)
Excluding GST impact, management expected NBM expansion of 4-6% for the full year, but GST noise may affect H2.
NEW
BFL MSME AUM growth to be 10-12% for FY26
Bajaj Finance cut unsecured MSME volumes by 25%, leading to full-year AUM growth of only 10-12% in that segment.
DROPPED
BFL expects to disburse over 50 million new loans in FY26
Bajaj Finance guided for over 50 million new loan disbursements in full-year FY26, up from 13.49 million in Q1.
DROPPED
BFL expects to add 14-16 million new customers in FY26
Bajaj Finance expects to add 14-16 million new customers in FY26, with 4.69 million added in Q1.
DROPPED
BALIC expects H2 growth to be 'significantly comfortable'
Management indicated that H2 growth will be significantly comfortable due to favorable base effects and strategy execution.
DROPPED
BAGIC aims to maintain combined ratio close to 100%
Management reiterated its endeavor to keep combined ratio close to 100%, despite current elevated levels.
NEW RISK
Elevated credit costs in unsecured MSME and two/three-wheeler segments
BFL's net losses and provisions were up 19% YoY, with credit costs elevated in MSME and two/three-wheeler segments, though management is cutting volumes.
NEW RISK
GST ITC impact on life insurance margins
The loss of input tax credit on GST is expected to impact NBM by ~450bps annualized if unmitigated. Management is working on mitigation but impact may persist for two quarters.
NEW RISK
Motor OD loss ratio spike
Motor OD loss ratio increased to 71% in Q2, above historical trends. Management termed it a quarterly blip but it bears watching.
NEW RISK
General insurance combined ratio above 100%
Combined ratio stood at 102.3% (101.4% ex-one-off), impacted by upfront acquisition costs for long-term motor policies. Management expects it to remain near 100%.
RISK GONE
Intense competition in general insurance
Competition remains high across motor, health, and crop segments, potentially pressuring pricing and combined ratios.
RISK GONE
Group protection degrowth due to MFI slowdown
BALIC's group protection business declined 7% YoY, largely due to slowdown in MFI lending, which is outside management's control.
RISK GONE
Persistency dips in 13-month bucket
BALIC observed lower persistency in the 13-month bucket due to base effect of higher ticket size policies written in Q4 FY24.
RISK GONE
Potential impact of tender-based crop business pricing
Management noted that crop tender pricing is below comfortable levels, which could lead to lower win rates or adverse loss ratios.
🤫 Topics management stopped discussing
Mentioned in Q2 FY25, Q3 FY25
Allianz's intention to exit the JV is at preliminary stage; no details provided, creating strategic uncertainty.
Mentioned in Q3 FY25, Q4 FY25
After a muted H1 due to high base and agency channel reset, growth is expected to recover in the second half of FY26.
Mentioned in Q2 FY25, Q4 FY25
Management expects VNB margin expansion to accelerate, with benefits from cost actions and product mix fully playing out by FY27, but visible from H2 FY26.
Fast read
Guidance and risk preview
After four quarters of flattish top line, management expects significant growth trajectory above industry from Q3 onwards, supported by GST tailwinds.
BFL's net losses and provisions were up 19% YoY, with credit costs elevated in MSME and two/three-wheeler segments, though management is cutting vo...
View Risks →