Bajaj Finance Q3 results: Profit declines 6% YoY to Rs 4,066 crore due to labor law impact, NII rises 21%

Bajaj Finance on Tuesday reported a 6% year-on-year decline in consolidated net profit for the third quarter at Rs 4,066 crore. The decline in operating income was mainly due to an accelerated provision for expected credit losses and one-off costs for new labor laws. Adjusted for the above and taxes, profits grew 23% to Rs 5,317 crore.Net interest income rose 21% in Q3FY26 to Rs 11,317 crore, compared to Rs 9,382 crore in Q3FY25.

Net total income rose 19% to Rs 13,875 crore, compared to Rs 11,673 crore in Q3FY25. Cost efficiency remained broadly stable, with operating costs to net total income at 32.8%, slightly lower than 33% a year ago. This helped support operating leverage despite continued investments in technology and distribution.

Bajaj Finance delivered steady operating performance in the December quarter, reporting strong loan growth and sharp customer base expansion even as higher provisioning hurt earnings. Operating profit before provisions rose 19% year-on-year to Rs 9,319 crore from Rs 7,805 crore.

Credit losses and provisions stood at Rs 3,625 crore during the quarter. This included accelerated ECL provisions of Rs 1,406 crore. Excluding these accelerated provisions, credit losses and provisions stood at Rs 2,219 crore, up 9% from Rs 2,043 crore in Q3FY25.

On an annual basis, credit losses and provisions before accelerated expected credit loss provisions decreased to 1.91% of average assets under financing, compared to 2.16% a year ago.

More to come…