More Stories

Informist, Saturday, Apr. 26, 2025

By Kabir Sharma

MUMBAI – Sturdy growth in loans and assets under management is expected to help Bajaj Finance Ltd. report healthy growth in its net profit for the quarter ended March, according to brokerages tracking the company. However, a slight compression in the net interest margin, driven by lower yields on advances, may limit the growth in the bottom line, brokerages said.

The largest deposit-taking non-bank finance company is expected to report a 16.3% increase in its net profit for the quarter ended March at INR 44.49 billion, according to the average of the estimates of 11 brokerage firms. Sequentially, the bottom line is seen rising 4.8%. Estimates for the net profit were in the range of INR 38.11 billion to INR 47.19 billion.  

The company is scheduled to detail its earnings on Tuesday. 

Shares of the company have risen over 18% since it declared its earnings for the December quarter in late January. On Friday, the stock ended 2% lower at INR 9,112 on the National Stock Exchange. 

"We expect BAF (Bajaj Finance) to report AUM growth of 27.5% YoY (on year) and 5.8% QoQ (on quarter) in Jan-Mar, supported by healthy new customer acquisition and the rollout of new product offerings," KRChoksey Research said in a note. "The NBFC's continued focus on product innovation, digital engagement, and cross-sell opportunities is expected to contribute to ongoing traction across segments, sustaining growth momentum despite a moderating credit environment." 

Bajaj Finance Ltd.'s assets under management were up 26% on year at INR 4.17 trillion as of Mar. 31, provisional figures released by the company earlier this month showed. The company's deposits were at INR 714.00 billion as on Mar. 31, up 19% from INR 601.51 billion a year ago, according to the provisional figures. The new loans book of the company grew 36% in Jan-Mar compared to a year ago.

According to estimates by brokerages, the company's net interest income is expected to grow 31.3% on year to INR 105.21 billion in the March quarter. "We expect the net interest income to grow by 26.7% YoY (on year) and 8.2% QoQ (on quarter) under the base case, primarily driven by robust AUM expansion," KRChoksey said. 

Even as growth in the loan book continues to support revenue momentum, brokerages anticipate a sequential contraction of 5-15 basis points in the lender's net interest margin. However, with interest expenses peaking in Jan-Mar, the fall in margin may be limited and it should remain stable for the coming quarters, brokerages said. The company did not disclose the net interest margin number for the December quarter. 

Brokerages expect the cost of funds to have peaked in the March quarter, which will support margins going forward. In the December quarter, the cost of funds was 7.96%, down 1 basis points over the previous quarter. 

Following are the Jan-Mar earnings estimates for Bajaj Finance Ltd. based on reports from 11 brokerage firms in descending order by the estimate of net profit:

End

Edited by Avishek Dutta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.