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).
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.
42%Questions answered5Evaded / deflected12Questions auditedMixedNumbers 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 NBM.
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 in BALIC.
Asked by Sanketh Godha, Avendus Spark
Management provided a 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 for BALIC 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
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 think at this point of time, I would not want to hazard a guess whether it will be 4%, 6%, or 7% margin expansion... Had that not been there, I think our confidence level in terms of margins that we have been saying that it should expand in the range of 4%-6% in this year would have definitely happened.
Partial answer
High priority
Growth outlook for BALIC in H2 FY26.
Asked by Sanketh Godha, Avendus Spark
Management indicated growth will resume but did not quantify.
no specific growth number
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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, and that ended September. 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
Divergence in motor OD vs TP growth and TP loss ratio sustainability.
Asked by Sanketh Godha, Avendus Spark
Management explained divergence but did not confirm sustainability of TP loss ratio.
no timeline for price hike
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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 try to maintain our market share in all lines of businesses... On the price hike of TP, for quite many years, it did not happen, which means that our belief is that it should happen very soon.
Evasive
Medium priority
Group health and retail health growth outlook for H2.
Asked by Sanketh Godha, Avendus Spark
Management refused to give a growth forecast for health business.
no commitmentdepends on market
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Question
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, which we feel is right, 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.
Partial answer
High priority
Sustainability of protection growth and margin outlook for BALIC.
Asked by Madhukar Ladha, Nuvama Wealth Management
Management gave qualitative assurance but no quantitative update on October trends.
no specific October data
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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 will be holding this product mix broadly in the medium term... the direction is positive.
Evasive
Medium priority
Plans to list life and general insurance companies.
Asked by Nidhesh Jain, Investec India
Management declined to give any concrete plans for listing.
no timelinedeferred 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.
Evasive
Medium priority
Reasons for combined ratio above 100% and path to below 100%.
Asked by Nidhesh Jain, Investec India
Management did not address when combined ratio would fall below 100%.
reframed to industry comparisonblamed accounting
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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... If the new accounting system is for internationally... then the combined comes way below 100.
Answered
Medium priority
Motor OD loss ratio increase to 71% - trend or blip?
Asked by Nidhesh Jain, Investec India
Management gave a clear answer that it is a blip and will normalize.
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Question
In the motor business, I have noticed that motor OD loss ratios have increased to 71%, which is on the higher side versus that historical trend. 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.
Evasive
Medium priority
Dividend policy for life insurance and capital adequacy.
Management did not commit to any dividend policy.
no commitmentdeferred to after Allianz deal
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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... Once that is completed, we will review that.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Retail health growth 11% excluding 1 by N impact | 11% | 11% | Matches filing |
| Retail health growth 15% in October | 15% | 11% | Overstated vs filing |
| GST impact on PAT is INR 112 crore | ₹112 cr | ₹4,746 cr | Understated vs filing |
| INR 73 crore of GST impact is backbook one-time | ₹73 cr | ₹4,746 cr | Understated vs filing |
| INR 39 crore of GST impact is for business after 22 Sep | ₹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”.