Bajaj Finance Q1 profit rises 27.3% as it targets MSMEs and first-time borrowers

Bajaj Finance reported consolidated net profit of Rs 5,496 crore for Q1 FY27, while AUM rose 24% year-on-year to Rs 5.47 lakh crore. The lender is guiding for 23-24% AUM growth in FY27 and sees MSMEs, entrepreneurs and new-to-credit customers as key growth engines.

— Source publishedFri, 31 Jul, 2026, 01:36 IST·First seen Fri, 31 Jul, 2026, 01:59 IST·Source Financial Express · BrandWagon

What happened

Bajaj Finance posted 27.3% YoY growth in Q1 consolidated profit to Rs 5,496 crore, supported by loan growth and asset quality. The lender plans to expand

Key facts

  • Consolidated net profit: Rs 5,496 crore, up 27.3% YoY
  • Consolidated AUM: Rs 5,46,944 crore, up 24% YoY as of June 30, 2026
  • New loans: 16.13 million, up 20% YoY
  • New customers added: 5.10 million; total customer franchise: 24.43 million
  • Q1 net interest income: Rs 11,495 crore, up 24% YoY
  • FY27 consolidated AUM growth guidance: 23-24%
  • 10-year AUM target: Rs 40 lakh crore; market-share target: 5% from 2.5%

Why this matters

Bajaj Finance’s push into MSME, entrepreneur and new-to-credit lending creates partnership and acquisition opportunities across alternative data, embedded finance, merchant ecosystems and credit-risk technology.

What to watch

  • Quarterly AUM growth relative to the 23-24% FY27 target.
  • Stage 2 and Stage 3 asset ratios, write-offs, collection efficiency and credit-cost guidance.
  • Growth in MSME and new-to-credit originations versus established-customer lending.
  • Net interest margin trends, cost of funds, deposit growth and borrowing mix.
  • RBI actions on unsecured consumer credit, NBFC capital/risk requirements or digital-lending practices.
  • Signs of stress in small-business cash flows, consumption demand or employment in key lending markets.
  • Increase originations in MSME, self-employed and new-to-credit segments through digital onboarding and partner-led distribution.
  • Use existing customer relationships to cross-sell consumer durable, personal, business, insurance and payments products.
  • Maintain granular risk-based pricing and tighten early-warning collection systems as newer borrower cohorts season.
  • Prioritize deposit mobilization and diversified wholesale funding to protect net interest margins during rapid AUM expansion.
  • Expand merchant and ecosystem partnerships to acquire first-time borrowers at lower customer-acquisition cost.