Bajaj Finserv Q2 FY27 profit rises 25 per cent as lending and life insurance offset general insurance pressure

Bajaj Finserv’s earnings are increasingly shaped by the scale of its retail lending franchise and a wider insurance portfolio that is navigating contrasting conditions. The financial services group reported consolidated total income of Rs 43,416 crore for the second quarter of financial year 2027 (Q2 FY27), up 17 per cent YoY, while consolidated profit after Tax (PAT) rose 25 per cent to Rs 5,952 crore.

Profit attributable to the company’s owners increased 23 per cent to Rs 2,758 crore from Rs 2,244 crore a year earlier. The board approved the results on November 3, 2026. For the first half of FY27, consolidated total income rose 18 per cent to Rs 85,453 crore and PAT increased 22 per cent to Rs 12,249 crore.

Bajaj Finance remained the principal earnings driver. Its consolidated net total income grew 23 per cent to Rs 15,974 crore, while PAT rose 29 per cent to Rs 6,367 crore. Assets under management (AUM) increased 26 per cent to Rs 5,84,624 crore as of September 30, 2026. Asset quality also improved, with gross non-performing assets declining to 1.06 per cent from 1.24 per cent a year earlier.

The lender added 4.42 million customers during the quarter and booked 13.45 million new loans. Bajaj Housing Finance contributed a PAT of Rs 757 crore, up 18 per cent, as its AUM expanded 25 per cent to Rs 1,58,205 crore. Bajaj Finance’s loan losses and provisions rose 4 per cent to Rs 2,166 crore, including Rs 337 crore of prudent management and macroeconomic provisions.

Insurance performance was mixed. Bajaj Life Insurance’s net value of new business, which measures profitability from newly written business, rose 40 per cent to Rs 512 crore. Its gross written premium increased 23 per cent to Rs 10,276 crore, supported by a sharp increase in group protection premium.

Bajaj General Insurance reported 10 per cent growth in gross written premium, but PAT fell to Rs 420 crore from Rs 517 crore. Its combined ratio, which measures claims and operating costs against premium, rose to 104.5 per cent from 102.3 per cent, while underwriting loss widened to Rs 115 crore. Lower capital gains and a smaller investable asset base also reduced investment income.

The group is also preparing to raise up to Rs 17,500 crore through a qualified institutional placement of up to Rs 11,700 crore and preferential warrants to Bajaj Finserv worth up to Rs 5,800 crore. The proposals remain subject to regulatory, statutory and shareholder approvals.

At 1:11 pm on November 3, 2026, Bajaj Finserv shares were trading at Rs 1,714, up 1.48 per cent from the previous close of Rs 1,689. The stock was about 19 per cent below its 52-week high of Rs 2,120.45. Over one year, the shares had declined 21.05 per cent, compared with a 6.52 per cent fall in the BSE 500, indicating a wider underperformance than the broader index over that period.

What This Means for Investors

Quarterly numbers reinforce the group’s dependence on Bajaj Finance, where 26 per cent AUM expansion, better asset quality and a 29 per cent rise in consolidated PAT are carrying earnings. The proposed Rs 17,500 crore fund raise would add growth capital as the lending book expands. Life insurance is adding a second profit lever through higher new-business profitability, and the group’s ecosystem can support distribution and cross-selling.

The update is potentially supportive over a medium-term horizon, but it does not remove the key insurance risk. Bajaj General’s combined ratio rose to 104.5 per cent and its underwriting loss widened, showing that premium growth has not offset claims and lower investment income. Emerging businesses recorded Rs 144 crore of quarterly losses, so their scale-up remains a drag. At Rs 1,689, the shares trade at 26.67 times trailing earnings and 3.25 times book value, keeping execution and underwriting discipline central.

Disclaimer: The article is for informational purposes only and not investment advice.