💰 Financial Performance

Revenue Growth by Segment

Bajaj Finance (BFL) net total income grew 20% to INR 13,170 Cr. Bajaj General (BAGIC) Gross Written Premium (GWP) increased 9% to INR 6,413 Cr (13.6% growth excluding 1/n accounting impact). Bajaj Life (BALIC) GWP grew 28% driven by 30% renewal premium growth. Bajaj Health revenue grew 22%.

Geographic Revenue Split

The company maintains a pan-India presence with over 242,000 points of sale and 225,000 insurance agents across the country. Specific regional % splits are not disclosed in available documents.

Profitability Margins

Bajaj Life New Business Margin (NBM) expanded to 17.1% from 10.8% YoY. Bajaj General ROE remains above 20% (excluding surplus capital). Bajaj Finance PAT grew 23% to INR 4,948 Cr. Bajaj Life PAT fell 91% to INR 13 Cr due to a one-time INR 112 Cr GST impact.

EBITDA Margin

Core profitability for Bajaj Finance remains strong with a 23% PAT growth. Bajaj General combined ratio stood at 101.4%, flat YoY, impacted by higher acquisition costs in preferred business lines. Bajaj Life Value of New Business (VNB) grew 50% to INR 367 Cr.

Capital Expenditure

Bajaj Finserv has invested in 138 windmills with 65.2 MW aggregate capacity. The company launched a INR 5,000 Cr initiative 'Bajaj Beyond' for skilling 1 crore youth over 5 years. No specific quarterly CapEx INR value for Q2 FY26 was disclosed.

Credit Rating & Borrowing

Not disclosed in available documents; however, Bajaj Finance (BFL) and Bajaj Housing Finance (BHFL) are major subsidiaries with significant AUM of INR 4,62,000 Cr (up 24% YoY).

⚙️ Operational Drivers

Raw Materials

Not applicable for financial services. Primary operational costs are interest expenses, acquisition costs (commissions), and technology expenses.

Import Sources

Not applicable for financial services.

Key Suppliers

Not applicable for financial services. Key partners include banks and NBFCs for group protection and distribution.

Capacity Expansion

Bajaj Finance booked 1.2 Cr new loans in Q2 FY26, up 26% from 0.97 Cr. Bajaj Life AUM reached INR 1,32,060 Cr. Bajaj General AUM reached INR 35,000 Cr. Renewable energy capacity is 65.2 MW.

Raw Material Costs

Not applicable. Acquisition costs in General Insurance are a key driver, slightly impacting PAT growth (5% growth to INR 517 Cr) due to focus on preferred segments.

Manufacturing Efficiency

Bajaj Life achieved 100-125 bps margin expansion through cost optimization. Bajaj Markets demonstrated capital efficiency with no capital infusion since March 2022.

Logistics & Distribution

Distribution is driven by 7.8 Cr BFL App installs and a network of 242,000+ points of sale.

📈 Strategic Growth

Expected Growth Rate

21-24%

Growth Strategy

Achieving growth through 'BALIC 2.0' focusing on retail protection (71% growth) and term protection (target 10% share in 2-3 years). Strategic acquisition of Allianz's 26% stake in insurance JVs to reach 100% ownership. Expansion into US and DIFC markets by 2025-2026.

Products & Services

Life insurance policies (Par, Non-par, ULIP, Term, Annuity), General insurance (Motor, Health, Preferred lines), Retail/Housing loans, and Asset Management services.

Brand Portfolio

Bajaj Finance, Bajaj Allianz (transitioning to Bajaj), Bajaj Health, Bajaj Markets, BajajTech.ai, Bajaj Finserv Securities, Bajaj Housing Finance.

New Products/Services

BajajTech.ai launched for technology services. Retail protection products grew 71% to INR 144 Cr. Group protection grew 23%.

Market Expansion

Planned US entry in 2026 and DIFC presence in 2025. Target to grow customer franchise from 10+ Cr in 2025 to 22+ Cr by 2030.

Market Share & Ranking

Bajaj General GDPI growth of 9.3% significantly outperformed the market growth of 1.8%. Bajaj Life VNB CAGR of 17% (FY20-25) is nearly 3x the industry average of 6%.

Strategic Alliances

Bajaj Group signed a Share Purchase Agreement (SPA) to acquire Allianz's 26% stake in insurance JVs. Partnered with 101 unique partners for Bajaj Markets.

🌍 External Factors

Industry Trends

Shift from ULIP-driven to multi-channel/multi-product insurers. Industry-wide persistency dips observed. Regulatory shift toward Risk-Based Capital (RBC) and IndAS implementation expected in 2-3 years.

Competitive Landscape

General insurance market is intensely price competitive. Bajaj General's 9.3% growth vs 1.8% market growth indicates strong competitive positioning.

Competitive Moat

Durable advantages include a massive distribution network (242k POS), high solvency ratios, and a diversified business model that allowed 24% AUM growth despite competitive pressures.

Macro Economic Sensitivity

Life insurance yields are sensitive to interest rate cycles; falling yields have reduced the attractiveness of Non-par guaranteed products.

Consumer Behavior

Increasing consumer expectation for digital-first experiences, addressed by 7.8 Cr BFL App installs and the Bajaj Markets discovery platform.

Geopolitical Risks

Not disclosed in available documents; focus is primarily on the Indian domestic market with planned US entry in 2026.

⚖️ Regulatory & Governance

Industry Regulations

IRDAI mandated 1/n accounting for long-term products effective Oct 1, 2024. New surrender value regulations and upcoming Risk-Based Capital (RBC) norms are key regulatory headwinds.

Environmental Compliance

Targeting carbon neutrality (Scope 1 & 2) by FY32. Currently a net energy producer with 84 million units generated from wind energy.

Taxation Policy Impact

GST regulations applicable to Retail Life insurance products led to a loss of input tax credit, resulting in a INR 112 Cr impact on quarterly profitability.

⚠️ Risk Analysis

Key Uncertainties

Brand transition risk following the exit of Allianz from insurance JVs. Regulatory uncertainty regarding GST and surrender charges. Persistency dips in specific insurance cohorts (impact % not specified).

Geographic Concentration Risk

Primarily concentrated in India; 100% of current revenue is domestic, with international expansion (US/DIFC) planned for 2025-2026.

Third Party Dependencies

Dependence on bank and NBFC partners for group protection growth. Bajaj Markets migrated to SFDC, indicating dependency on third-party CRM technology.

Technology Obsolescence Risk

Mitigated by migration to SFDC and cloud-native platforms. Bajaj Markets saw a planned de-growth (INR 164 Cr to INR 90 Cr) due to system migration risks.

Credit & Counterparty Risk

Bajaj Finance AUM of INR 4,62,000 Cr represents significant credit exposure; however, PAT grew 23%, indicating stable asset quality.