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Evaluate Bajaj Finance by asking whether its market price is justified by sustainable earnings and returns, then test the growth behind those returns against credit costs, non-performing assets, provisions and capital needs. The latest company snapshot available here is for Q1 FY27, the quarter ended 30 June 2026; it does not establish a current share price or valuation multiple. Refresh market data before deciding whether the shares look expensive or attractive.
Start with three connected questions
A useful assessment links valuation, growth and asset quality rather than treating any one metric as a verdict:
- Valuation: What price-to-earnings (P/E) and price-to-book (P/B) multiples does the share price imply, and are they supported by sustainable profitability?
- Growth: Are assets under management (AUM) and net interest income (NII) expanding, and are those gains translating into repeatable profit and returns?
- Asset quality: Are delinquency indicators, credit costs and provisions consistent with the pace and mix of lending?
Use like-for-like periods and a consistent basis. The figures below are consolidated unless identified otherwise; do not mix them with standalone figures in a comparison.
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What the latest reported figures show
Bajaj Finance Limited’s FY2026 annual report gives AUM of ₹509,975 crore, up 22% year on year, and consolidated GNPA and NNPA of 1.01% and 0.41%. The FY2026 chairman’s letter reports NII of ₹44,110 crore, up 21%; net total income of ₹53,324 crore, up 21%; and reported PAT of ₹19,332 crore, up 15%. Read the FY2026 annual report and chairman’s letter.
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For Q1 FY27, the quarter ended 30 June 2026, the company’s investor presentation reports consolidated NII of ₹12,571 crore, up 23% year on year, and net total income of ₹15,224 crore, up 22%. Consolidated PAT was ₹6,081 crore, up 28%, and annualised return on equity (ROE) was 20.4%, compared with 19.0% in Q1 FY26. These are quarterly results and an annualised return measure, not a forecast of full-year performance. See Bajaj Finance’s Q1 FY27 investor presentation.
Assess asset quality beyond the headline NPA ratios
At 30 June 2026, consolidated gross non-performing assets (GNPA) were 0.96% and net non-performing assets (NNPA) were 0.39%, versus 1.03% and 0.50% at 30 June 2025. Stage-3 provision coverage was 60%. These year-on-year point-in-time measures improved, but they do not by themselves show how risk may develop as loans season or as the portfolio mix changes.
Read provisions and credit costs together
Q1 FY27 loan losses and provisions were ₹1,993 crore, including a ₹296 crore prudent management and macroeconomic provision. The company’s presentation gives ₹1,697 crore excluding that overlay and says this amount was down 14% year on year. Keep the reported figure and the company’s adjusted comparison separate: the overlay is part of reported provisions, while the adjusted figure is not the reported total.
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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsWhen reviewing later quarters, compare provisions and credit costs with income and loan growth, and look for disclosures on stage 2 and stage 3 assets and movement between stages. A low GNPA or NNPA ratio is not a substitute for examining those trends, provision coverage and the amount of risk retained on the balance sheet.
Test whether growth is producing durable returns
AUM, NII and total income growth indicate expansion, but growth alone does not establish that each additional rupee of lending creates attractive shareholder returns. Compare income growth with credit costs, operating costs, funding costs and capital requirements. Funding-cost trends matter because a lender’s margin can be pressured if its cost of borrowing rises faster than the yield on its assets; use company disclosures to track the direction rather than infer it from income growth alone.
ROE helps connect profit to shareholder capital, but one quarter’s annualised ROE should not be assumed to recur. Consider whether returns remain supportable after credit losses and provisions, and whether growth requires additional capital. At 30 June 2026, Bajaj Finance reported consolidated capital adequacy of 20.90% and Tier 1 capital of 20.01%. These are dated measures; assess them alongside subsequent lending growth and regulatory disclosures.
Choose an earnings basis before calculating valuation
The earnings denominator materially changes P/E. For FY2026, the chairman’s letter reports PAT of ₹19,332 crore. It also presents adjusted PAT of ₹20,689 crore, up 24%, after excluding an additional ECL provision of ₹1,406 crore, management and macroeconomic overlays of ₹142 crore, and a one-time labour-code charge of ₹265 crore. The reported PAT grew 15%. If using the adjusted figure, identify it as the company’s adjusted measure and show reported earnings as well; do not treat adjustments as though they were the statutory reported result.
Calculate P/E and P/B using dated inputs
- Record the share price and market capitalization as of a stated date from a current exchange or reliable market-data source.
- For P/E, divide market capitalization by the chosen annual PAT basis, or divide share price by consistent per-share earnings. State whether earnings are reported or adjusted and which fiscal period they cover.
- For P/B, divide market capitalization by the corresponding book value of equity, or use price per share divided by book value per share. Keep dates and share-count basis consistent.
- Compare the resulting multiples with historical readings and relevant Indian lender or NBFC peers using the same date, earnings basis, fiscal period and asset-quality definitions.
No current share price or peer multiples are established by the company figures cited above, so they are not stated here. A multiple alone cannot determine whether the shares are cheap or expensive: interpret P/E with sustainable earnings and P/B with sustainable ROE, risk and capital needs.
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Checklist for the next results
- Update the share price, market capitalization, P/E and P/B with an explicit as-of date.
- Keep reported and adjusted profit distinct, and account for every adjustment.
- Compare AUM, NII and total-income growth with credit costs and provisions.
- Track GNPA, NNPA, stage 2 and stage 3 assets, and provision coverage on comparable dates.
- Review funding costs, capital adequacy and Tier 1 capital alongside returns and portfolio growth.
- For peer comparisons, align fiscal periods, accounting basis, product mix and asset-quality definitions.
Bajaj Finance’s official investor-relations hub provides results, quarterly-call materials, annual reports and stock-exchange filings; check it for disclosures after the periods cited here: Bajaj Finance investor relations. This framework is educational and is not an individualized investment recommendation.
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