1. At a Glance
Bajaj Finserv is like that overachiever cousin who’s got an insurance license, runs a NBFC, dabbles in mutual funds, and still finds time to annoy you at weddings. With a market cap over ₹3.17 lakh crore, it’s no side hustle. But behind the shiny metrics, there’s a whole lot of complexity—and just a pinch of drama.
2. Introduction with Hook
Imagine a Swiss Army knife… that also files your taxes, insures your cat, gives loans for your dog’s MBA, and somehow still manages to underperform the Sensex every alternate quarter.
That’s Bajaj Finserv for you.
This beast:
- Clocked ₹35,439 Cr in consolidated sales in Q1 FY26.
- Delivered a net profit of ₹5,329 Cr, up 30% YoY.
But with a PE of 33x, are we paying premium for the packaging or the performance?
3. Business Model (WTF Do They Even Do?)
Basically, they’re the umbrella holder for three giants:
- Bajaj Finance (lending wizard)
- Bajaj Allianz Life Insurance (life + regrets)
- Bajaj Allianz General Insurance (accidents + apologies)
Oh, and now they’ve started a mutual fund business too—because why not?
So in short:
They don’t do the operations. They own the people who do the operations. It’s capitalism inception.
4. Financials Overview
| Metric | Q1 FY26 | YoY Growth |
|---|---|---|
| Revenue | ₹35,439 Cr | +52% |
| EBITDA (OP) | ₹14,315 Cr | +53% |
| Net Profit | ₹5,329 Cr | +30% |
| EPS | ₹17.46 | Highest Ever |
- Operating Margin: Still a juicy 40%, like a Gujarati mango.
- Interest cost: ₹6,807 Cr – rising like fuel prices.
- Depreciation: ₹317 Cr – amortising faster than your iPhone battery.
Margins remain strong, but the interest bill is starting to look like a fintech startup’s burn rate.
5. Valuation
Fair Value Range: ₹1,700 – ₹2,200
Method 1: PE-Based
- EPS TTM: ₹59.6
- At 30x = ₹1,788
- At 35x = ₹2,086
Method 2: SOTP (Sum-of-the-Parts)
- Bajaj Finance stake = ~₹2.5L Cr
- Insurance arms + MF = ~₹65K Cr
- Less holding discount = ~20%
- FV ≈ ₹2,150
Conclusion?
If you think paying 4.3x book value makes sense, you’re also probably buying popcorn in multiplexes with UPI.
6. What’s Cooking – News, Triggers, Drama
- Allianz exits JV: Bajaj now owns 100% of life and general insurance arms. Independence achieved.
- New CFO: Ramandeep Singh Sahni. Fresh brain, old headaches.
- Mutual Fund Launch: Seven funds already live. Let’s hope they’re better than the AUM rankings.
- GST drama: ₹341 Cr demand slapped on Bajaj Finance. Because no quarter is complete without a tax twist.
Plot twists? Enough to qualify for an OTT crime thriller.
7. Balance Sheet
| Item | Mar 2025 (₹ Cr) |
|---|---|
| Equity Capital | 160 |
| Reserves | 72,236 |
| Borrowings | 3,55,855 |
| Other Liabilities | 2,23,269 |
| Total Liabilities | 6,51,519 |
| Investments | 1,90,130 |
| Other Assets | 4,54,778 |
Commentary:
- Debt: Not Titanic-level, but they’ve clearly borrowed enough to make a banker nervous.
- Asset Growth: Zooming like India’s GDP targets.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | -₹39,480 Cr | -₹13,945 Cr | ₹51,016 Cr | -₹2,409 Cr |
| FY24 | -₹65,502 Cr | -₹14,132 Cr | ₹82,709 Cr | ₹3,075 Cr |
| FY25 | -₹62,113 Cr | -₹7,987 Cr | ₹70,191 Cr | ₹92 Cr |
Translation:
Operating cash flow is redder than your bank app during month-end. But financing keeps them alive—like that one friend who always asks for a “short-term” loan.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 13% |
| ROCE | 11% |
| P/E | 33x |
| PAT Margin | 13.5% |
| D/E | 4.9x |
| OPM | 37% |
Verdict:
- ROCE is good but not party-worthy.
- PE is high. Clearly, the market sees them as a brand, not a balance sheet.
- Debt? Well, they are in financial services after all.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹82,072 Cr | ₹29,868 Cr | ₹12,210 Cr |
| FY24 | ₹1,10,382 Cr | ₹40,886 Cr | ₹15,595 Cr |
| FY25 | ₹1,33,822 Cr | ₹49,524 Cr | ₹17,558 Cr |
Commentary:
Growth across the board. But PAT is slowing—so you may have to squint to see the momentum.
11. Peer Comparison
| Company | Revenue (Cr) | PAT (Cr) | P/E | ROE |
|---|---|---|---|---|
| Bajaj Finserv | 1,37,780 | 18,678 | 33x | 13.4% |
| Bajaj Holdings | 739 | 6,439 | 24x | 11.0% |
| JM Financial | 4,410 | 773 | 21x | 8.5% |
| Choice Intl. | 944 | 172 | 87x | 18.9% |
Punchline:
Bajaj Finserv looks like the least drunk guest at a party of investment holding companies.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2025 |
|---|---|
| Promoters | 58.81% (down 1.8%) |
| FIIs | 8.4% |
| DIIs | 10.1% |
| Public | 22.6% |
| No. of Shareholders | 6.8 lakh |
- Promoters trimming stake = classic “we’re confident, but we’ll cash out too.”
- Mutual fund + insurance consolidation = synergy or chaos? TBD.
13. EduInvesting Verdict™
Bajaj Finserv is the Godfather of financial conglomerates—insurance, lending, and now mutual funds, all under one bespoke umbrella. The numbers look solid, and the growth engine is still humming. But the valuations? Priced like it’s already FY2030.
A top-tier pit stop. Just don’t expect free upgrades or early boarding.
Metadata:
Written by EduInvesting Team | 25 July 2025
Tags: Bajaj Finserv, Q1 FY26, Insurance, Financial Services, EduInvesting Premium
