Bajaj Finance Q3 PAT down 6% on accelerated ECL provisions, one-time impact of labour codes

Bajaj Finance added 4.76 million new customers to its franchise in Q3 and expects to add 17-18 million new customers to its franchise in FY26
| Photo Credit:
istock

Bajaj Finance, India’s largest non-banking finance company, announced a 6% year-on-year decline in consolidated net profit to ₹4,066 crore for the quarter ending December. This decrease primarily resulted from increased provisions for potential loan defaults and adjustments related to the government’s revised Labour Codes.

Managing Director Rajeev Jain stated the company strengthened its balance sheet by introducing minimum loss calculation standards across all lending segments. This conservative approach led to accelerated reserve allocations totaling ₹1,406 crore during the quarter. An additional ₹265 crore charge addressed updated employee benefit obligations under new labor regulations.

Excluding these special adjustments, quarterly profits would have shown 23% growth to ₹5,317 crore compared to the previous year. The lender’s assets expanded by 22% year-on-year, reaching ₹4.84 lakh crore. New loan disbursements climbed to 13.9 million during the quarter, with customer acquisition reaching 4.76 million – positioning the company to potentially onboard 17-18 million new customers by fiscal year 2026.

Net interest earnings grew 21% to ₹11,317 crore while maintaining steady margins. Borrowing costs decreased slightly to 7.45%. Total provisions for potential defaults stood at ₹3,625 crore, increasing from ₹2,043 crore last year. The company’s non-performing loans remained stable at 1.21% of total assets, with post-provision defaults at 0.47%.

Published on February 3, 2026