This article first appeared on GuruFocus .
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Consolidated Total Income:INR 39,708 crore, up 24% from INR 32,042 crore year-over-year.
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Consolidated Profit After Tax (PAT):Before exceptional items, grew 32% to INR 2,936 crore from INR 2,231 crore year-over-year.
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Bajaj General Insurance GWP:Increased by 11.5% to INR 7,389 crore from INR 6,626 crore year-over-year.
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Bajaj General Insurance Combined Ratio:Improved to 97.9% from 101.1% year-over-year.
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Bajaj Life Insurance VNB:Grew 59% to INR 405 crore from INR 254 crore year-over-year.
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Bajaj Life Insurance AUM:Increased 13% to INR 1,38,000 crore year-over-year.
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Bajaj Finance AUM:Grew 22.1% to INR 4,85,883 crore.
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Bajaj Finance Net Total Income:Increased 19% to INR 13,817 crore from INR 11,673 crore year-over-year.
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Bajaj Finance PAT:Before exceptional items, grew 23.3% to INR 5,227 crore from INR 4,246 crore year-over-year.
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Bajaj Housing Finance AUM:Grew 23.2% year-over-year.
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Bajaj Housing Finance Net Interest Income:Increased 19% to INR 1,153 crore from INR 933 crore year-over-year.
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Bajaj Finserv Health Revenue Growth:22% increase in revenue from operations.
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Bajaj Finserv Asset Management AUM:Exceeded INR 30,000 crore.
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Release Date: February 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Bajaj Finserv Ltd ( BOM:532978 ) reported a consolidated total income growth of 24% year-over-year, reaching INR39,708 crore.
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The company's consolidated profit after tax, before exceptional items, grew by 32% to INR2,936 crore.
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Bajaj General Insurance maintained a healthy combined ratio of 97.9%, which is among the lowest in the multiline market.
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Bajaj Life Insurance achieved the highest ever value of new business and new business margins over the last decade, with a VNB growth of 59%.
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Bajaj Finserv Asset Management Company recorded an AUM of over INR30,000 crore, moving to the 26th spot among mutual fund companies in India.
Negative Points
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The company faced a one-time impact of the new labor code, affecting the bottom line by INR167 crore.
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Bajaj Finance made an accelerated ECL provision, impacting the net consolidated PAT by INR540 crore.
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Persistency dips were observed across a few cohorts in Bajaj Life Insurance, which are being addressed.
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The underwriting loss for Bajaj General Insurance increased due to higher acquisition costs and the impact of the new labor code.
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Bajaj Markets experienced a decline in top-line revenue due to a planned transition of software, impacting growth.
Q & A Highlights
Q: Could you provide some insights into the strong growth in the institutional business on the Life side? Is it due to new partners or faster growth with existing ones? Also, is the agency side showing signs of recovery? A: The growth in the institutional business is widespread and not limited to big partners. We've seen success with smaller partners, and new partnerships like AU and Fed have contributed significantly. On the agency side, while growth is evident, the focus remains on improving VNB rather than just top-line growth. The strategy involves enhancing efficiency and cost management.
Q: Regarding the product mix, is it accurate to say that agency will focus more on traditional and protection-heavy products, while institutions will lean towards banca-heavy products? A: Not necessarily. Our agency has a unique approach, utilizing profitable ULIPs and a systematic uptake of term products. Institutional strategies vary by bank, and we maintain a diversified approach. We don't rely heavily on any single bank, which differentiates us from other bancassurance-led companies.
Q: Can you provide guidance on VNB margins, considering the GST impact? How do you see margins evolving? A: The GST impact was initially estimated at 450 bps, but we've mitigated about 325 bps. Moving forward, we expect a reset of 125 bps as part of our base. While we don't provide specific guidance, we anticipate a tapering of margin expansion and VNB growth due to base effects. Our strategy remains focused on efficiency and cost corrections.
Q: On the General Insurance side, why is there a significant growth in motor OD despite elevated loss ratios? A: The elevated loss ratio is an industry-wide phenomenon, primarily due to pricing pressures and GST impacts on IDVs. We continue to grow with a long-term view of sustainable growth, and the industry is expected to correct itself over time.
Q: How is competition affecting the motor and health segments in General Insurance, and what are the retail health loss ratios? A: The industry is experiencing intense competition, with combined ratios moving up. Bajaj General maintains a strong position with a combined ratio significantly better than the industry average. Retail health loss ratios have improved compared to last year, and motor TP releases are in line with expectations.
Q: What is the outlook for motor TP loss ratios, and how do you view underwriting losses despite improved combined ratios? A: Motor TP loss ratios are influenced by reserve releases, which are a positive sign of adequate reserving. Underwriting losses are impacted by factors like the new labor code and increased acquisition costs due to market share gains in motor. The combined ratio remains healthy, reflecting our disciplined approach.
Q: Can you explain the sudden spike in annuity mix and the moderation in retail protection growth in Life Insurance? A: The annuity mix increase is due to new product propositions and market competitiveness. Retail protection growth appears moderated because we've been focusing on it for the past two years, resulting in a high base effect. GST has also made retail protection more affordable.
Q: How do you view the pricing intensity in fire and commercial lines, and what is the expected trend? A: The pricing in fire and commercial lines has softened due to good loss ratios and the absence of major catastrophic events. This cyclic nature of the market will lead to corrections as loss ratios change. We expect the industry to adjust pricing accordingly.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
