Analyst Concall
Bajaj Fin sees MSME growth rebound, bets on AI-led FY27
This story was originally published at 21:17 IST on 29 April 2026
Register to read our real-time news.Informist, Wednesday, Apr. 29, 2026
Please click here to read all liners published on this story
--Bajaj Fin: MSME loans continue to see muted growth
--Bajaj Fin: MSME loans should come back to double digit growth in Q2 or Q3
--CONTEXT: Comments from Bajaj Finance mgmt in post earnings analyst call
--Bajaj Fin:Expect FY27 to be busiest year in terms of Fin AI transformation
--Bajaj Fin: Likely to cross 5 mln loans in April despite West Asia crisis
--Bajaj Fin: FY27 guidance based on easing geo-political worries
--Bajaj Fin: Confident of adding 15-17 mln customers in FY27
--Bajaj Fin: Expect some moderation in NIM in FY27
--Bajaj Fin: Expect significant depolyment of AI across verticals in FY27
--Bajaj Fin:Optimistic about FY27 profit, asset quality to remain rangebound
--Bajaj Fin: Expect AUM to grow by 20-24% in FY27
--Bajaj Fin: Can navigate West Asia war impact
--Bajaj Fin: Entering FY27 with tailwinds on credit cost
By Kabir Sharma and Afra Abubacker
MUMBAI – Bajaj Finance Ltd. struck an optimistic tone on growth and profitability outlook for 2026-27 (Apr-Mar), even as it flagged near-term pressures in select segments and evolving geopolitical risks.
At a post-earnings analyst call following the March quarter results, the lender said its micro, small and medium enterprise loan segment continues to show subdued momentum, attributing the trend to calibrated risk actions undertaken in recent quarters. "MSME continued to see muted growth... it grew by about 6%," management said, adding that corrective measures are largely behind it. The company expects the segment to recover meaningfully, with "double-digit growth likely to return by Q2 (Jul-Sept) or Q3 (Oct-Dec) of FY27."
Despite the softness in MSME lending, the company highlighted strong traction across its broader franchise. It indicated that it is on track to cross 5 million loans in April — marking a milestone monthly run rate — even amid ongoing geopolitical tensions in West Asia.
Management downplayed the immediate impact of global uncertainties, including the West Asia conflict, noting that the firm remains well-positioned to navigate disruptions. "We have momentum... we can navigate even if the environment weakens," the company management said, pointing to underlying demand resilience and internal buffers.
However, the company clarified that its FY27 guidance is contingent on easing geopolitical tensions and macroeconomic stability. "The assessment is based on expectations of easing geopolitical tensions," management said, underlining that any escalation could alter projections.
A key highlight of the call was the company's aggressive push towards artificial intelligence-led transformation. Bajaj Finance expects FY27 to be its "busiest year" for financial AI (FinAI) initiatives, with significant investments already underway. The lender plans to deploy AI widely across verticals, including underwriting, customer engagement, operations, and risk management. "We will see significant acceleration and deployment of AI use cases across revenue, cost, customer engagement...," management said.
Bajaj Finance guided for a 20–24% growth in assets under management in FY27, supported by the scale-up of newer businesses and normalisation in segments like MSME. The company also remains confident of expanding its customer franchise, targeting the addition of 15–17 million new customers during the year.
On profitability, the management was optimistic about earnings growth even as it expects some moderation in net interest margins (NIMs). "We expect marginal moderation... depending on how interest rates play out," it said. Despite this, the lender expects profit growth to remain strong, aided by operating efficiencies and lower credit costs. Asset quality is likely to remain stable, with gross and net NPAs expected to stay within a narrow range.
One of the key positives flagged by the management was the improving credit cost trajectory. The company said it is entering FY27 with "tailwinds" on credit costs, driven by factors such as the wind-down of legacy portfolios and stabilisation in MSME stress. "We are entering the year with tailwinds... that itself is a big help," management noted, adding that credit costs are expected to trend lower in the coming year.
The non-bank financier reported a consolidated net profit of INR 54.65 billion for the March quarter, up 22% on year and almost 38% on quarter. The profit was in line with analysts' estimate of INR 54.40 billion. The company announced its results after market hours Wednesday. Its shares closed 0.7% higher at INR 930 on the National Stock Exchange. End
Edited by Saji George Titus
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. 2026. All rights reserved.
To read more please subscribe
Share this Story:
