1. At a Glance
Bajaj Finance dropped a Q1 profit of ₹4,765 Cr, flexing an AUM of ₹4.4 lakh Cr, and proving yet again that it’s not a finance company—it’s the finance company. But with a 34x PE and 6.2x P/B, are we paying for tomorrow’s EMI dreams today?
2. Introduction with Hook
If Indian NBFCs were a Bollywood movie, Bajaj Finance would be the Amitabh Bachchan—veteran, still leading, and somehow louder every quarter. From launching 26 product lines to making “EMI” a household word, BFL is the reason your cousin in Jhansi bought an iPhone 15 on zero down payment.
Oh, and their stock price CAGR over 10 years? 34%. That’s not compounding. That’s rocket fuel with a Bajaj logo.
3. Business Model (WTF Do They Even Do?)
“Basically, they lend you money you didn’t know you needed, for things you probably shouldn’t buy, and make you feel good about it.”
- Retail Lending – Personal loans, consumer durables, lifestyle spends.
- SME Lending – Business loans, working capital for SMEs, equipment financing.
- Commercial Lending – Loans to large corporates, infra-linked financing.
- Deposits – Yes, they take your money too. FD book? Solid.
And let’s not forget: Flexi Loans, EMI Cards, Wallets, Insta EMI apps—if you can borrow it, they’ve built it.
4. Financials Overview
| Metric | Q1 FY26 | YoY Change |
|---|---|---|
| Revenue | ₹19,524 Cr | +56% |
| Net Profit | ₹4,765 Cr | +39% |
| EPS (₹) | 7.56 | From 5.67 |
| AUM | ₹4,41,450 Cr | +31% YoY |
| GNPA | 1.03% | Stable |
| NNPA | 0.50% | Rock solid |
Margins strong, profits stronger, and asset quality so clean it makes soap jealous.
5. Valuation
- P/E: 34.2x
- P/B: 6.2x
- Market Cap: ₹5.96 lakh Cr
- ROE: 19.2%
Let’s sanity-check:
- FY25 EPS: ₹28.09
- If we apply a reasonable 25x P/E → Fair Value = ₹702
- At 30x = ₹843
- Current price = ₹959
Fair Value Range: ₹700–₹850
At CMP, you’re paying a premium for consistency, brand, and the hope that growth never pauses. It’s less about value. More about faith.
6. What’s Cooking – News, Triggers, Drama
- New MD Alert: Rajeev Jain promoted to Vice-Chairman & MD (aka Captain Forever).
- ESOP Issue: 8.2 million shares granted—employee wealth party is on.
- AUM Growth: ₹4.4 lakh Cr and counting—thanks to explosive traction in consumer and SME.
- Investor Love: FIIs back over 21%, Public holding down to 8.9%.
No frauds, no RBI slaps, just high-octane growth and a little drama with interest rate sensitivity.
7. Balance Sheet
| Item | Mar 2025 |
|---|---|
| Net Worth | ₹96,693 Cr |
| Borrowings | ₹3.61 lakh Cr |
| Total Liabilities | ₹4.66 lakh Cr |
| Fixed Assets | ₹3,780 Cr |
| Investments | ₹34,441 Cr |
| Total Assets | ₹4.66 lakh Cr |
Clean. Leveraged (it’s an NBFC), but responsibly so. Grows without overstretching.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹-42,112 Cr | ₹-10,394 Cr | ₹50,675 Cr | ₹-1,831 Cr |
| FY24 | ₹-69,843 Cr | ₹-10,088 Cr | ₹82,415 Cr | ₹2,484 Cr |
| FY25 | ₹-68,154 Cr | ₹-2,765 Cr | ₹70,527 Cr | ₹-392 Cr |
NBFC cash flow logic: Borrow more, lend more. Net cash is just a rounding error.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 19.2% |
| ROCE | 11.4% |
| NIM (approx.) | ~10%+ |
| GNPA | 1.03% |
| NNPA | 0.50% |
| D/E | ~3.7x |
Verdict:
Balance sheet strength with Ferrari acceleration. But D/E and interest costs mean brakes matter.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | PAT | EPS (₹) |
|---|---|---|---|
| FY23 | ₹54,974 Cr | ₹14,451 Cr | ₹23.35 |
| FY24 | ₹69,709 Cr | ₹16,779 Cr | ₹26.77 |
| FY25 | ₹73,107 Cr | ₹17,633 Cr | ₹28.09 |
Steady compounder. Think: SIP on steroids.
11. Peer Comparison
| Company | CMP | P/E | ROE | PAT (TTM) | GNPA |
|---|---|---|---|---|---|
| Bajaj Finance | ₹959 | 34.2 | 19.2% | ₹17,633 Cr | 1.03% |
| Shriram Finance | ₹634 | 14.5 | 15.6% | ₹8,209 Cr | ~6% |
| Muthoot Finance | ₹2,662 | 20.0 | 19.6% | ₹5,332 Cr | ~2% |
| SBI Cards | ₹886 | 44.0 | 14.8% | ₹1,916 Cr | ~1.8% |
Bajaj = Expensive, but cleanest, fastest-growing, and arguably safest.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2023 | Jun 2025 |
|---|---|---|
| Promoters | 55.9% | 54.7% |
| FIIs | 19.2% | 21.7% |
| DIIs | 12.9% | 14.5% |
| Public | 11.7% | 8.9% |
Promoters stable. Institutions increasing stake. Retail getting priced out. Classic institutional darling.
13. EduInvesting Verdict™
Bajaj Finance is the Sachin Tendulkar of Indian NBFCs—consistent, classy, and still relevant after decades. But at 34x PE, you’re buying the legend, not just the innings.
Perfect for long-term believers. But don’t expect bargain-basement thrills—it’s business class, not budget airline.
Written by EduInvesting Team | 24 July 2025
Tags: Bajaj Finance, NBFC, Lending, Rajeev Jain, EduInvesting Premium
