Bajaj Finance Ltd Q3 FY25 Results: Strong 27.3% YoY Revenue Growth, Profit Reaches ₹4,308 Cr
Bajaj Finance Ltd: Overview
Bajaj Finance Ltd. (BFL) is one of India’s leading non-banking financial companies (NBFCs) and operates as a subsidiary of Bajaj Finserv Ltd. The company has built a formidable presence in the financial services industry with a diversified portfolio spanning consumer, SME, and commercial lending. Company is present in 1,538 locations with 134.7K+ active distribution points of sale as of Q3FY24. BFL is the largest consumer electronics, digital products & lifestyle products lender in India. BFL has established itself as a key player in the Indian NBFC sector, which is currently experiencing significant growth due to increasing consumer credit demand, rapid digital transformation, and supportive regulatory policies. The NBFC sector in India plays a crucial role in financial inclusion, bridging the gap between traditional banking services and underserved markets. Bajaj Finance has successfully leveraged technology-driven solutions to enhance its customer experience, optimize operations, and expand its distribution network. The company has also adopted a multi-channel approach, integrating physical branches with digital platforms, ensuring accessibility across urban and rural markets. With a continuous focus on innovation, customer-centric offerings, and strategic expansion, Bajaj Finance is well-positioned to maintain its leadership in the rapidly evolving financial landscape.
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Bajaj Finance delivered a strong quarter in terms of volumes, AUM growth, and operating expenses, with loan losses stabilizing and profit growth gaining momentum. Return on assets (ROA) remained steady, while the company achieved an AUM growth of ₹24,119 crore. It booked a record-high 12.06 million new loans and added 5.03 million new customers, bringing its total customer franchise to 97.12 million. Home loans AUM grew by 23%, Loan against property grew by 19%, Lease rental discounting grew by 26%, Developer finance grew by 59%. The Bajaj Finserv App reached 66.57 million net users. In Q3 FY25, the company expanded its geographic presence by adding 14 new locations and 8,900 distribution points, increasing its total locations to 4,259 and active distribution points to over 224,000 as of December 31, 2024. The liquidity buffer stood at ₹13,656 crore. Geographic presence stood at 174 locations. The cost of funds decreased marginally to 7.96% in Q3, while gross and net NPA stood at 1.12% and 0.48%, respectively, as of December 31, 2024, compared to 0.95% and 0.37% in the previous year, maintaining one of the lowest NPA levels in the industry. Capital adequacy remained robust at 21.57%, with Tier-1 capital at 20.79%.
Business Segments
- Consumer Finance: This segment includes personal loans, two-wheeler and three-wheeler financing, durable goods financing, lifestyle financing, and digital product financing. By offering flexible and customized financial products, Bajaj Finance has become a preferred choice for retail consumers seeking financing solutions for personal needs and purchases.
- SME & Commercial Lending: This segment caters to small and medium enterprises by offering business loans, working capital loans, professional loans, and loans against property. These financial products help businesses meet their capital requirements, expand operations, and manage cash flow effectively.
- Rural Lending: Recognizing the growing financial needs of rural customers, Bajaj Finance has expanded its rural lending portfolio. The company offers agricultural equipment loans, gold loans, and personal finance products tailored for rural markets, helping drive financial inclusion and economic development in these areas.
- Mortgages: This segment covers home loans, loans against property, and lease rental discounting. With a growing demand for housing and real estate financing, Bajaj Finance provides attractive mortgage solutions to customers seeking property-related financial assistance.
- Deposits: Bajaj Finance offers fixed deposit schemes for retail and corporate customers, providing a safe and reliable investment avenue. With competitive interest rates and flexible tenure options, the company’s deposit products have gained popularity among investors seeking stable returns.
- Partnerships & Co-Branded Cards: The Company collaborates with financial institutions and banks to offer co-branded credit cards and digital payment solutions. These partnerships help in expanding customer reach and enhancing the overall payment ecosystem in India.
Subsidiary Information
- Bajaj Housing Finance Ltd (BHFL): A wholly-owned subsidiary that specializes in home loans, loans against property, and developer financing. With a strong presence in the housing finance sector, BHFL plays a crucial role in expanding Bajaj Finance’s mortgage offerings.
- Bajaj Financial Securities Ltd (BFSL): This subsidiary focuses on wealth management services, offering investment solutions, brokerage services, and trading platforms. BFSL helps investors navigate the stock market and make informed investment decisions.
- Bajaj Finserv Direct Ltd: This subsidiary provides digital financial solutions, enabling customers to access insurance, loans, and investment products online. Through a seamless digital experience, Bajaj Finserv Direct Ltd. enhances financial accessibility and convenience for customers.
- Bajaj Auto Finance Ltd: Primarily engaged in vehicle financing, this subsidiary caters to two-wheeler and three-wheeler customers by providing financing solutions for automobile purchases. It plays a vital role in supporting Bajaj Auto’s extensive customer base.
- Bajaj Allianz Financial Distributors Ltd: This subsidiary acts as a distributor for various financial products, including insurance and investment services. By offering a wide range of financial products, it supports customers in making sound financial decisions and securing their future.
Q3 FY25 Earnings
- Revenue of ₹18035 crore in Q3 FY25 up by 27.3% YoY from ₹14164 crore in Q3 FY24.
- Financing Profit of ₹5958 crore in this quarter at a margin of33% compared to 36% in Q3 FY24.
- Profit of ₹4308 crore in this quarter compared to a ₹3639 crore profit in Q3 FY24.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 14164 | 18035 | 41411 | 54972 |
| Interest | 4868 | 6386 | 12701 | 18886 |
| Expenses | 4229 | 5691 | 12693 | 16099 |
| Financing Profit | 5066 | 5958 | 16018 | 19987 |
| Financing Margin | 36% | 33% | 39% | 36% |
| Other Income | 5 | 26 | -5 | 6 |
| Net Profit | 3639 | 4308 | 11508 | 14451 |
| NPM | 25.7% | 23.9% | 27.8% | 26.3% |
| EPS | 61.8 | 68.6 | 190.1 | 233.5 |