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News Topical, Digital Desk : Bajaj Finance Limited released its results on February 3, 2026. These results came after market hours. The stock closed 7% higher at Rs 964. While quarterly profits declined, strong NII growth, robust AUM growth, and improved asset quality provided solace to investors. Bajaj Finance's Q3 FY26 results were mixed. While the company's consolidated profit declined, its loan book, interest income, and business growth maintained investor confidence.
The company's consolidated profit fell from Rs 4,247 crore to Rs 3,978 crore on a year-on-year basis, a clear decline in profits on a year-on-year basis.
Notably, while the market expected profits to be around ₹5,201 crore, profits were significantly weaker than expected. However, despite the weak profits, the company's consolidated NII (interest income) remained strong, rising from ₹9,382 crore to ₹11,317 crore. The market's estimate was around ₹11,280 crore, meaning the company performed better than expected on this front. The labor code also had a significant impact on the results. The company clarified that the labor code had an impact of approximately ₹250 crore. This is believed to be the reason for the pressure on profits. Regarding asset quality, gross NPAs increased from 1.12% to 1.21% on a quarterly basis, indicating a slight increase in stress on the loan book. However, a relief was that net NPAs declined from 0.48% to 0.47%, indicating that the company's recovery and provisioning situation remains under control. The company's performance on the business growth front remained strong. AUM (Assets Under Management) increased by 22% year-on-year to reach ₹4.86 lakh crore. The rapid AUM growth indicates that the company's position in the consumer finance and retail loan segments remains strong. Looking at the stock's performance, on February 3, 2026, the company's shares closed at ₹964, up 7%. Over the past year, the stock has gained approximately 14%. Regarding shareholding patterns, promoters hold a 54.7% stake in the company, while foreign institutional investors (FIIs) hold 19.34%, indicating continued interest from foreign investors. Overall, the weak profitability of Bajaj Finance's results is certainly a cause for concern, but strong NII, a steadily growing loan book, and controlled net NPAs reassured investors that the company's growth story is far from over. This is why the stock saw a sharp rise despite weak profits. Investors will now be watching to see how long the impact of the labor code lasts and whether profits return to the growth track in the coming quarters.
Read More: Adani Ports reports strong December quarter profit growth of 21%; EBITDA reaches record high
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