Bajaj Finance shares focus as Q3 earnings fall 6% year-on-year and NII rises 21%

Shares of Bajaj Finance are likely to remain in focus during Wednesday’s trading session after the company reported its third quarter results. The lender posted a 6% year-on-year decline in net profit, even as net interest income (NII) showed strong growth, reflecting healthy momentum on core lending.Bajaj Finance reported a 6.3% year-on-year decline in net profit, which fell to Rs 3,978 crore in the December quarter, compared to Rs 4,247 crore in the same period last year.

At the same time, the company’s core lending performance remained strong with net interest income (NII) rising 21% year-on-year from Rs 9,383 crore to Rs 11,318 crore. Net interest margins remained stable, indicating steady yield and financing dynamics throughout the quarter.

Bajaj Finance’s business growth indicators remained robust:

Bajaj Finance continued to witness strong balance sheet expansion, with assets under management (AUM) rising 22% year-on-year to Rs 4.86 lakh crore as on December 31, 2025, compared to Rs 3.98 lakh crore in the year-ago period. In the third quarter of FY26 alone, the company added Rs 23,622 crore to its assets under management.

Loan disbursement momentum also remained healthy as new loans booked grew 15% year-on-year to 13.90 million in the third quarter of FY26, compared to 12.06 million in the corresponding quarter last year.

The lender continued to expand its customer base, adding 4.76 million customers during the quarter. Management expects this growth trend to continue, with 17-18 million new customers likely to be added in FY26.

Geographic footprint expanded to 4,052 locations.

Bajaj Finance’s liquidity and funding position remained comfortable:

Bajaj Finance maintained a comfortable liquidity and funding position during the quarter. The company’s liquidity buffer stood at Rs 15,081 crore as of December 31, 2025, providing ample headroom to support growth and liabilities.The cost of funds improved to 7.45%, down 7 basis points quarter-on-quarter. Management indicated that financing costs are expected to remain within the range of 7.55-7.60% in FY26, reflecting stable financing conditions.

Meanwhile, the deposit franchise continued to strengthen, with the deposit book rising to Rs 71,037 crore. Deposits accounted for 17% of consolidated loans, supporting a more diversified and stable funding mix.

Credit cost trends:

Credit losses and provisions (pre-accelerated ECL) rose 9% year-on-year to Rs 2,219 crore, compared to Rs 2,043 crore in Q3 FY25, indicating some pressure on asset quality.

Shares of Bajaj Finance ended Tuesday’s session sharply higher, rising 6.68% to close at Rs 964 on the NSE.

While profitability has been under pressure due to higher provisioning, strong NII growth, rising assets under management, growing customer base and stable margins are likely to keep Bajaj Finance stock in the spotlight for investors and traders in the near term.

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