Any current/future new fundraising through debt or equity?

The deposit contribution of the balance sheet may decrease from around 19% to between 15%-16% over the next 12 months, depending on growth momentum. To ensure delivery of a rightful cost of funds, there will be higher reliance on Non-Convertible Debentures (NCD), External Commercial Borrowings (ECB), and bank borrowings in the near term. No explicit mention of new equity fundraising in the provided content. Cost of funds is expected to improve with current borrowing strategies, estimated around 7.60% to 7.65% for FY '26, with potential positive impact from further rate cuts. No indicat

Any current/future capex/capital investment/strategic investment?

No explicit mention of current or future capex or capital investment plans is found on page 16. The focus appears to be on managing credit risk and portfolio quality amid economic slowdown. Emphasis on pruning business segments (e.g., MSME, auto finance) and controlling growth for stability. Investments highlighted in technology, particularly AI capabilities, with 150 people dedicated to AI starting January 1. Strategic partnerships and technology platform enhancements (e.g., app-based loan approvals) are ongoing to improve customer acquisition and experience. No direct details about large-sca

Future growth expectations in sales/revenue/volumes?

Bajaj Finance added 4.7 million new customers in Q1 FY'26, following record additions of 15-16 million over the past two years. The company expects to end FY'26 with approximately 120 million customer franchise, maintaining an annual run rate of 14-16 million new customers. Continued investments in top-of-funnel activities and strategic partnerships aim to sustain customer acquisition momentum. The newly launched app-based loan approval engine, covering about 15% of customers, is expected to add 2-3 million new customers annually. MSME and auto finance segments are expected to see slower growt

Future growth expectations in earnings/operating earnings/profits/EPS?

FY '26 growth guidance includes fee income expected to grow 13%-15%, reflecting a reset from prior year actions. Credit cost guidance for FY '26 is maintained at 185-195 basis points, with expected sideways movement in Q2 and gradual improvement from Q3 onward. NIM expected to remain flat for the current year, with potential for 5-10 bps expansion due to rate cuts. Auto finance vertical shrinking, contributing 5-7 bps improvement in overall loan loss averages, positively impacting earnings. Overall AUM grew 25% in Q1; steady growth momentum anticipated going forward. Profitability: ROE stood a

Bajaj FinanceQ2 FY26Finance

Bajaj Finance Q2 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,088P/E: 32.9Market Cap: ₹6.7L CrSector: Finance

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Capex

0 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Bajaj Finance added 4.7 million new customers in Q1 FY'26, following record additions of 15-16 million over the past two years.
→The company expects to end FY'26 with approximately 120 million customer franchise, maintaining an annual run rate of 14-16 million new customers.
→Continued investments in top-of-funnel activities and strategic partnerships aim to sustain customer acquisition momentum.
→The newly launched app-based loan approval engine, covering about 15% of customers, is expected to add 2-3 million new customers annually.
→MSME and auto finance segments are expected to see slower growth this year due to economic slowdown and business pruning.
→Overall loan book and AUM grew strongly by 25% in Q1, indicating positive volume growth backed by diverse product offerings.
→Fee income is guided to grow at 13-15% for the year, reflecting stable revenue growth prospects.
→The company is cautious but optimistic with targeted controlled growth, focusing on risk management and AI-driven efficiencies.

Margin guidance

Category 3

→FY '26 growth guidance includes fee income expected to grow 13%-15%, reflecting a reset from prior year actions.
→Credit cost guidance for FY '26 is maintained at 185-195 basis points, with expected sideways movement in Q2 and gradual improvement from Q3 onward.
→NIM expected to remain flat for the current year, with potential for 5-10 bps expansion due to rate cuts.
→Auto finance vertical shrinking, contributing 5-7 bps improvement in overall loan loss averages, positively impacting earnings.
→Overall AUM grew 25% in Q1; steady growth momentum anticipated going forward.
→Profitability: ROE stood at 19% in Q1; management focused on sustaining strong profitability.
→Slower growth expected in MSME and auto finance segments, which may moderate near-term profit growth.
→Continued investment in AI and digital initiatives aimed at operational efficiency and long-term earnings growth.

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Fundraise plans

→The deposit contribution of the balance sheet may decrease from around 19% to between 15%-16% over the next 12 months, depending on growth momentum.
→To ensure delivery of a rightful cost of funds, there will be higher reliance on Non-Convertible Debentures (NCD), External Commercial Borrowings (ECB), and bank borrowings in the near term.
→No explicit mention of new equity fundraising in the provided content.
→Cost of funds is expected to improve with current borrowing strategies, estimated around 7.60% to 7.65% for FY '26, with potential positive impact from further rate cuts.
→No indication of imminent or planned public equity issuance or rights issue; focus is primarily on managing debt and maintaining liquidity buffers of about INR 15,000 crores as of June 30, 2025.

Order book

The transcript does not disclose specific information on the current or expected order book or pending orders for Bajaj Finance Limited for Q1 FY26. Key points related to business outlook include: - Rajeev Jain mentions a slowing environment impacting 13 out of 17 tracked industries. - MSME portfolio is INR 50,000 crores; doctors segment INR 15,000 crores; business showing some pressure. - Credit supply tightened; company actively pruning risky segments and focusing on reducing overdue loans (3 MOB, 6 MOB, 9 MOB). - Growth in certain segments is deliberately slowed to ensure asset quality. - New customer additions remain strong at 4.7 million in Q1. - Emphasis on AI for business transformation and productivity improvement. - No explicit details on order book or pending orders for loan products were provided. Hence, the report focuses more on portfolio composition, credit quality, and growth rather than order book figures.

Capex plans

→No explicit mention of current or future capex or capital investment plans is found on page 16.
→The focus appears to be on managing credit risk and portfolio quality amid economic slowdown.
→Emphasis on pruning business segments (e.g., MSME, auto finance) and controlling growth for stability.
→Investments highlighted in technology, particularly AI capabilities, with 150 people dedicated to AI starting January 1.
→Strategic partnerships and technology platform enhancements (e.g., app-based loan approvals) are ongoing to improve customer acquisition and experience.
→No direct details about large-scale capital expenditures or new strategic investments.

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