Bajaj Finance Limited Q4FY25 Result Analysis

Bajaj Finance Limited is a subsidiary of Bajaj Finserv Limited. Initially, the Company was promoted by former Bajaj Auto Limited and Bajaj Auto Holdings Limited. The Company is engaged in business of lending and acceptance of deposits. It has a diversified lending portfolio across retail, SMEs, and commercial customers with significant presence in both urban and rural India. It accepts public and corporate deposits and offers variety of financial services products to its customers.

Result Analysis:   Bajaj Finance Limited  (CMP: Rs. 8,664 )

Result Update: Q4FY25

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Financial Performance:

Shareholding Pattern:

Particulars (In %)	Q4FY25	Q4FY24
Promoters	54.73	54.69
FIIs	19.60	17.89
DIIs	17.42	17.82
Public and Other	8.26	9.61

Management Commentary:

• NIM, The Company has moderated pricing in select unsecured businesses. Cost of funds is estimated to go down by 10-15 bps in FY26. Overall, the company estimate NIM to remain stable in FY26.
• The company is optimistic about profit growth in FY26, with return on assets estimated between 4.4% and 4.6%, and return on equity, supported by excess capital, projected at 19% to 20%. Gross and net NPA levels are expected to remain below long-term guidance of GNPA of 1.2% to 1.4% and NNPA 0.4% to 0.5%
• The company has announced a stock split in the ratio of 1:2 and a bonus issue in the ratio of 4:1. Additionally, it has declared a final dividend of ₹44 per share along with a special Interim dividend of ₹12 per share.
• The company has provided long-term guidance for AUM growth in the range of 25% to 27%, reflecting its confidence in sustained business momentum and continued expansion across retail, SME, and commercial lending segments.

Outlook:

Bajaj Finance Limited delivered a strong Q4 FY25, with revenue up 23.9% YoY to ₹18,146 crore and PAT rising 18.9% to ₹4,545 crore. NII grew 22% to ₹9,807 crore, while AUM increased 26% to ₹416,661 crore. GNPA and NNPA stood at 0.96% and 0.44%, respectively. For FY26, the company expects stable NIM, ROA of 4.4%-4.6%, and ROE of 19%-20%. It announced a 1:2 stock split, 4:1 bonus issue, and dividends totaling ₹56 per share. The Bank reported an EPS of ₹268.20 in FY25, and the stock is currently trading at a P/E of 32.3x and P/B of 6.11x.

Results:

Particulars (In Rs. Cr.)	Q4FY25	Q4FY24	Q3FY25	YoY%	QoQ%	FY25	FY24	YoY%
Operating Income	18146.05	14641.92	17632.98	23.9	2.9	68264.59	53945.36	26.5
Other Operating Income	310.8	284.29	402.13	9.3	-22.7	1418.92	1026.19	38.3
Other Income	20.71	8.78	26.23	135.9	-21.0	59.08	18.6	217.6
Total Income	18477.56	14934.99	18061.34	23.7	2.3	69742.59	54990.15	26.8
Operating Expenditure
Interest	6551.98	5217.09	6385.63	25.6	2.6	24770.79	18724.69	32.3
Employee Expenses	1943.19	1649.72	1955.54	17.8	-0.6	7508.34	6396.01	17.4
Other Expenses	1754.06	1460.13	1692.29	20.1	3.7	6536.81	5245.86	24.6
TOTAL OPERATING EXPENDITURE	10249.23	8326.94	10033.46	23.1	2.2	38815.94	30366.56	27.8
Operating Profit Before Prov. & Cont.	8228.33	6608.05	8027.88	24.5	2.5	30926.65	24623.59	25.6
Provisions & Write Offs	2328.94	1310.01	2043.33	77.8	14.0	7966.03	4630.7	72
Depreciation	252.01	192.96	219.13	30.6	15.0	880.99	683.32	28.9
TOTAL EXPENDITURE	12830.18	9829.91	12295.92	30.5	4.3	47662.96	35680.58	33.6
EBT	5647.38	5105.08	5765.42	10.6	-2.0	22079.63	19309.57	14.3
Tax	1028.89	1260.5	1470.06	-18.4	-30.0	5389.74	4957.72	8.7
Deferred Tax	72.92	20.05	-12.83	263.7	-668.4	-89.59	-99.32	9.8
PAT	4545.57	3824.53	4308.19	18.9	5.5	16779.48	14451.17	16.1

Source: Company website, EWL Research

 

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