Bajaj Finance Q2 Results: Net Profit Surges 23% Amid MSME Segment Stress

Market Performance

Shares of Bajaj Finance opened the week on a cautious note, reflecting market apprehensions despite strong quarterly results. Investors digested the company’s Q2 performance, which showed healthy profit growth but also highlighted emerging stress in its MSME lending portfolio.

Bajaj Finance Q2 Earnings Highlight

Bajaj Finance reported a 23% increase in consolidated net profit, reaching ₹4,948 crore for the quarter ended September 30, 2025. Key financial metrics included:

• Net Interest Income (NII): ₹10,785 crore, up 22% from ₹8,838 crore in Q2 FY25
• Asset Quality: Gross NPA rose to 1.24% from 1.06% last year; Net NPA increased to 0.6% from 0.46%
• Credit Growth Guidance: Revised downward to 22-23% from 24-25%

The company’s performance demonstrates resilience, even as it navigates the challenges in specific lending segments.

MSME Segment Stress and Credit Guidance

The moderation in credit growth comes primarily from the MSME and two-wheeler lending segments, which are showing signs of stress. This has prompted Bajaj Finance to take a more balanced and prudent approach toward asset growth this financial year.

• Management expects flat Net Interest Margins (NIMs) going forward, passing cost benefits to customers.
• Fee income growth guidance remains at 13%-15%
• Credit costs are projected at 1.85%-1.95% for FY26.

The cautious stance reflects the company’s focus on maintaining asset quality while sustaining growth in core portfolios.

Company Details

Bajaj Finance continues to hold its position as a leading NBFC in India, with a diversified lending book spanning retail, MSME, and vehicle financing. The Q2 results reaffirm its ability to deliver steady profit growth, even as market segments face pressures.

Summary

Bajaj Finance’s Q2 earnings underscore a story of strong profit growth coupled with disciplined credit management. While the MSME portfolio shows emerging stress, the company’s cautious approach, flat NIM guidance, and steady fee income expectations provide a balanced outlook for its current financial year.

• Consolidated Net Profit: ₹4,948 crore (+23%)
• Net Interest Income: ₹10,785 crore (+22%)
• Gross NPA: 1.24%
• Net NPA: 0.6%
• Credit Growth Guidance: 22-23%

This quarter illustrates how Bajaj Finance continues to navigate challenges while delivering strong performance, maintaining its footprint in India’s NBFC space.