This article first appeared on GuruFocus .
-
Consolidated Total Income:INR 37,400 crores, up 11% from INR 33,700 crores year-over-year.
-
Consolidated Profit After Tax:INR 2,244 crores, an increase of 8% from INR 2,087 crores year-over-year.
-
Bajaj General Insurance Gross Written Premium:INR 6,413 crores, up 9% from INR 5,871 crores year-over-year.
-
Bajaj General Insurance Profit After Tax:INR 517 crores, up 5% from INR 494 crores year-over-year.
-
Bajaj Life Insurance VNB:INR 367 crores, a 50% increase from INR 245 crores year-over-year.
-
Bajaj Life Insurance New Business Margin:17.1%, up from 10.8% year-over-year.
-
Bajaj Finance AUM:INR 4,62,000 crores, a growth of 24% from INR 3,74,000 crores year-over-year.
-
Bajaj Finance Profit After Tax:INR 4,948 crores, up 23% from INR 4,014 crores year-over-year.
-
Bajaj Housing Finance AUM:24% growth with specific increases in home loans, loan against property, lease rental discounting, and developer finance.
-
Bajaj Housing Finance Profit After Tax:INR 643 crores, an 18% increase year-over-year.
-
Bajaj Finserv Health Transactions:6.2 million, up from 2.4 million year-over-year.
-
Bajaj Finserv Asset Management AUM:INR 28,815 crores as of September 30, with a 15% increase from the previous quarter and 77% year-over-year.
-
Warning! GuruFocus has detected 7 Warning Signs with BOM:532978.
-
Is BOM:532978 fairly valued? Test your thesis with our free DCF calculator.
Release Date: November 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Bajaj Finserv Ltd ( BOM:532978 ) reported a consolidated total income growth of 11% to INR 37,400 crores compared to the same quarter last year.
-
The company's consolidated profit after tax increased by 8% to INR 2,244 crores, with a healthy profit growth of 12% when excluding MTM movements from insurance subsidiaries.
-
Bajaj General Insurance outperformed the market with a 9% increase in gross written premium and a 13.6% growth excluding the 1/n impact.
-
Bajaj Life Insurance reported a significant 50% increase in VNB to INR 367 crores and an expansion in new business margins to 17.1% from 10.8% last year.
-
Bajaj Finance achieved a strong AUM growth of 24% and a profit after tax increase of 23% to INR 4,948 crores.
Negative Points
-
The company's underwriting loss increased to INR 92 crores from INR 48 crores last year, with a combined ratio of 102.3% impacted by higher acquisition costs.
-
Bajaj Life Insurance's profit after tax decreased significantly to INR 13 crores from INR 148 crores last year, largely due to a GST-related impact of INR 112 crores.
-
The net losses and provisions for Bajaj Finance increased by 19%, with elevated credit costs in the 2- and 3-wheeler and MSME segments.
-
Bajaj Markets experienced a planned degrowth in top line revenue from INR 164 crores to INR 90 crores due to system migration issues.
-
The motor business in Bajaj General Insurance showed a divergence in OD and TP growth, with concerns about the sustainability of the current loss ratio.
Q & A Highlights
Q: Could you explain the 140 basis points impact on the Net Business Margin (NBM) due to GST changes for Bajaj Allianz Life Insurance Company (BALIC)? How do you plan to mitigate the GST Input Tax Credit (ITC) losses? A: The 140 bps impact on NBM is split into 50 bps from the back book (business written before September 22) and 90 bps from new business post-September 22. The impact is due to the loss of ITC on renewal commissions. To mitigate this, we are adjusting product structures and working with distributors to share the GST burden. We expect to stabilize this within two quarters. - Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance Company Ltd; Vipin Bansal, CFO, Bajaj Life Insurance
Q: What is driving the significant improvement in BALIC's margins, and is this sustainable? A: The margin improvement is driven by product mix changes, cost optimization, and better product margins. Approximately 400 bps of the margin expansion is from product mix, and 100-125 bps from cost optimization. We expect this margin expansion to be sustainable, although the GST impact may cause some short-term noise. - Tapan Singhel, MD & CEO, Bajaj Allianz General Insurance Company Limited
Q: With the favorable base in the second half, can we expect growth to return for BALIC? A: Yes, the strategy of maintaining a flattish growth trajectory is over, and we expect growth to exceed industry levels. The GST changes provide a tailwind, and we are seeing growth in proprietary sales and bancassurance. We anticipate a favorable growth trajectory in the coming quarters. - Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance Company Ltd
Q: Why has the combined ratio for Bajaj General Insurance been consistently above 100% recently, and is there a possibility of it going below 100% in the medium term? A: The combined ratio is influenced by upfront acquisition costs for long-term business and the 1/n accounting impact. Despite this, Bajaj General consistently outperforms the industry by 15-20 percentage points. We aim to maintain a combined ratio close to 100% while delivering strong ROE. - Tapan Singhel, MD & CEO, Bajaj Allianz General Insurance Company Limited
Q: Are there any plans to list Bajaj Life Insurance and Bajaj General Insurance separately? A: Currently, our focus is on completing the acquisition of Allianz's stake. We will review listing plans after considering regulatory developments like Ind AS, RBC, and potential changes in the Insurance Act. We do not foresee any listing in the next 2-3 years. - Ramandeep Sahni, CFO, Bajaj Finserv Ltd
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
