Bajaj Finance stock: Q2 growth guidance raised to 26%-27%

Bajaj Finance raised its full-year growth outlook after a strong second quarter, while highlighting an expanding artificial-intelligence program and improving asset quality. The update was presented on October 19, 2026, for the quarter ended September 30.

According to Investing.com, assets under management grew 26% year over year to INR 584,624 crore. Profit before tax and profit after tax each increased 29% before a macroeconomic provision, while net interest income rose 24% to INR 13,335 crore.

Guidance reflects stronger first-half growth

Management lifted its full-year FY27 AUM growth guidance to 26%-27%, compared with the previous range of 23%-25%. The company also expects to disburse 60-62 million new loans and add 18-20 million customers during the fiscal year.

New loan bookings reached 13.45 million in the quarter, up 11% year over year. The customer franchise expanded to 128.85 million after the addition of 4.42 million customers, while annualized return on equity improved to 20.6%.

Credit quality remains a key focus

Gross non-performing assets declined to 1.06% from 1.24% a year earlier, and net non-performing assets fell to 0.42% from 0.60%. Loan losses and provisions totaled INR 2,166 crore, including an additional INR 337 crore for management and macroeconomic risks. Excluding that provision, loan losses declined 12% year over year to INR 1,829 crore.

AI investment and capital planning

Bajaj Finance said its FINAI initiative expanded during the quarter. The company reported 328 employees in its AI unit, 13 voice bots and 24 consumer text bots, with AI-generated leads contributing INR 2,744 crore in disbursements.

On October 1, the board approved plans to raise up to INR 11,700 crore through a qualified institutional placement and up to INR 5,800 crore through warrants issued to Bajaj Finserv. The proposals remain subject to shareholder approval and are intended to support growth, resilience and subsidiary capital needs.