Bajaj Finance reports 22% profit growth despite credit costs

Bajaj Finance reported 22% profit growth in Q1 FY2026, with assets under management rising INR 24,789 crores to INR 4,41,450 crores. The company booked a record 13.5 million loans and added 4.7 million new customers.

However, credit costs remained elevated at 2.02%, particularly in the 2 and 3-wheeler businesses. MSME lending showed stress, prompting restructuring of INR 219 crores in standard accounts.

The company expects 5-10 basis point net interest margin expansion and targets 13%-15% fee income growth for FY2026.