Bajaj Finance stock faces QIP test after 29% Q2 profit rise

Published on 11/04/2026 at 10:53 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Bajaj Finance stock stays in focus as the lender seeks fresh capital while loan growth and asset quality support its FY27 outlook. The funding plan remains subject to approval.

Profit Growth Meets Funding Plans

Net interest income increased 24% year over year in Q2 FY27, supporting higher earnings.
Assets under management reached INR 5.85 trillion at September 30, while gross non-performing assets improved year over year.
The proposed QIP and promoter warrants could strengthen capital but may increase the share count if completed.

Bajaj Finance, INE296A01024, Illustration mit AI erstellt.

Bajaj Finance reported a 29% year-over-year rise in consolidated net profit to INR 6,367 crore for the July-September quarter of fiscal 2027. The result was reported on October 19 and covered by Business Standard.

Strong lending supports earnings

Net interest income rose 24% year over year to INR 13,335 crore, while net total income increased 23% to INR 15,974 crore. Assets under management reached INR 5.85 trillion at September 30, after the lender added INR 37,680 crore during the quarter.

Bajaj Finance booked 13.45 million new loans and added 4.42 million customers during the quarter. Management expects to book 60 million to 62 million new loans and add 18 million to 20 million customers in fiscal 2027, according to the report.

Asset quality remains a key watchpoint

Loan losses and provisions increased 4% year over year to INR 2,166 crore, including an INR 337 crore management and macroeconomic provision. Excluding that provision, loan losses and provisions declined 12% to INR 1,829 crore.

Gross non-performing assets improved to 1.06% from 1.24% a year earlier, while net non-performing assets fell to 0.42% from 0.60%. Stage 2 and Stage 3 assets rose during the quarter partly because of a transitional movement in the gold loan portfolio, but the lender said it did not expect that change to affect credit costs.

Capital plans add an equity question

The board approved proposals, subject to shareholder approval, to raise up to INR 11,700 crore through a qualified institutional placement and up to INR 5,800 crore through warrants convertible into equity shares for Bajaj Finserv and its holding company. The proposed transactions are intended to support growth and strengthen resilience, but investors will also weigh potential dilution if the instruments are issued.