Bajaj Finance was larger by reported AUM and profit in FY2025–26, while Cholamandalam Investment and Finance (Chola) had a more visibly vehicle-finance- and secured-credit-focused portfolio. Their reported asset-quality ratios also differ, but definitions and portfolio mixes matter. The figures below come from each company’s FY2025–26 annual report and cover the year ended March 31, 2026; they do not establish which share is cheaper or a better buy today.
How do Bajaj Finance and Chola compare at a glance?
The figures are company-reported for FY2025–26. AUM, customer measures and some performance ratios are not necessarily defined on identical bases, so the labels are part of the comparison.
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| Measure | Bajaj Finance | Cholamandalam Investment and Finance |
|---|---|---|
| AUM | ₹509,975 crore | Total AUM: ₹242,630 crore; net business AUM: ₹224,334 crore |
| AUM growth | 22% year on year | 21.4% year on year, as reported by the company; its report also cites 21% growth in business AUM |
| PAT | ₹20,689 crore, on the company’s marked basis excluding specified FY2026 charges | ₹5,220 crore |
| PAT growth | 24% year on year on the marked basis | 23% year on year |
| Asset-quality measures | GNPA: 1.01%; NNPA: 0.41% | Gross NPA: 4.4%; net NPA: 2.9%; Gross Stage 3: 3.0%; Net Stage 3: 1.6% |
| Returns and profitability | ROE: 19.2%, on the marked basis excluding specified charges | ROE: 19.7%; NIM: 8.0%; PBT-ROTA: 3.3% |
| Capital measures | A comparable figure is not included in the cited headline data | Capital adequacy: 19.2%; Tier I capital: 14.7% |
| Distribution and customer measures | 119.33 million customer franchise; more than 242,000 active distribution points | 1,761 branches; more than 47.5 lakh customers |
These are not live or current-quarter figures. AUM and customer metrics are presented as each company reports them, not as perfectly harmonised measures. In particular, Chola’s total AUM and net business AUM are different figures and should not be interchanged.
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Scale
Bajaj Finance reported AUM of ₹509,975 crore for FY2025–26, compared with Chola’s total AUM of ₹242,630 crore. Chola also reported net business AUM of ₹224,334 crore. The reported values show a larger Bajaj Finance franchise, but they should not be treated as an exact like-for-like multiple because the companies’ AUM definitions are not established as identical.
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Growth
Bajaj Finance reported 22% AUM growth and 24% PAT growth on its marked basis. Chola reported AUM growth of 21.4% and PAT growth of 23%; its annual report also cites 21% growth in business AUM. These are year-on-year outcomes, not forecasts. The companies’ growth rates are close in this snapshot, but the small difference does not by itself establish which has a stronger long-term trajectory.
How do their lending businesses differ?
Bajaj Finance: a broad product suite
Bajaj Finance describes a suite of 27 products and 46 variants. Its FY2025–26 report highlights 52.45 million new loans booked and a 119.33 million customer franchise. “Customer franchise” is the company’s measure; it should not automatically be read as a count of unique active borrowers. The breadth of products makes Bajaj more than a consumer-loan specialist, but the headline product count alone does not show the risk or profitability of each segment.
Chola: vehicle finance and secured credit are prominent
Chola’s disclosed businesses include vehicle finance, home loans, loans against property, SME loans, secured business and personal loans, consumer and small-enterprise loans, gold loans and consumer durable loans, among other services. Vehicle-finance AUM was ₹1,19,558 crore and loan-against-property AUM was ₹52,295 crore in FY2025–26. Those balances make the two categories prominent, but they do not describe Chola’s entire portfolio; the company reports a wider range of lending businesses.
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The distinction is therefore one of disclosed emphasis, not a simple choice between a diversified lender and a single-segment lender: both companies operate multiple lending businesses, with Chola’s vehicle-finance and secured-credit exposures particularly visible in its reported segment figures.
What do the asset-quality figures say—and what don’t they say?
Bajaj Finance reported GNPA of 1.01% and NNPA of 0.41% for FY2025–26. Chola reported gross NPA of 4.4% and net NPA of 2.9%, as well as separate Gross Stage 3 of 3.0% and Net Stage 3 of 1.6% measures. On the reported headline NPA percentages, Bajaj’s figures are lower. However, Chola’s NPA and Stage 3 figures are distinct measures; substituting the lower Stage 3 figures for its NPA figures would misstate the company’s disclosure.
A single year’s ratios cannot establish which lender is safer. Portfolio composition, definitions, write-offs, provisioning and the timing of recognition affect how ratios compare. Chola said it held a ₹200 crore management overlay as of March 31, 2026, for potential adverse geopolitical impacts on its loan portfolio, and that the FY2026 loan-loss figure includes the overlay. That is a disclosed precaution, not proof that future losses will rise or that deterioration has occurred.
The cited figures do not provide a full pairwise view of segment-level credit quality, provisioning coverage, borrower concentration, underwriting, or funding and liquidity. Those would be important to an investor assessing risk beyond the headline ratios.
Are their profits and returns directly comparable?
Earnings
Bajaj Finance reported net total income of ₹53,324 crore and PAT of ₹20,689 crore on a marked basis. The company’s asterisked PAT excludes an additional ₹1,406 crore ECL provision, ₹142 crore for management and macro-economic overlays, and a ₹265 crore one-time charge for implementing New Labour Codes; all three charges were recognised in FY2026. Read the PAT figure with those exclusions attached rather than as an unadjusted reported result.
Chola reported total income of ₹31,445 crore, PBT of ₹6,961 crore and PAT of ₹5,220 crore for FY2025–26. Its reported PAT grew 23% year on year. Differences in scale and accounting adjustments mean that comparing the two PAT figures alone does not show which business converts income into profit more effectively.
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Returns
Bajaj Finance’s reported ROE is 19.2% on the marked basis excluding the specified FY2026 charges; Chola’s annual report reports ROE of 19.7%. The values are close, but their bases are not fully like-for-like. Chola also reported NIM of 8.0% and PBT-ROTA of 3.3%. The cited headline data do not provide a matching Bajaj NIM on the same basis, so Chola’s NIM should not be presented as a direct head-to-head win.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What can investors conclude about capital and reach?
Chola reported capital adequacy of 19.2% and Tier I capital of 14.7%. A comparable Bajaj Finance capital figure is not included in the cited headline data, so these numbers alone cannot show that either lender has stronger capital. A full capital comparison would require equivalent measures on the same reporting basis, alongside funding costs and leverage.
The companies also report reach differently. Bajaj Finance cites a customer franchise of 119.33 million and more than 242,000 active distribution points; Chola reports 1,761 branches and more than 47.5 lakh customers. These company-defined measures describe different distribution models and customer counts. They are useful context, not a like-for-like test of reach, efficiency or customer activity.
Does this comparison show which stock is a better investment?
No. The annual-report figures compare operating performance through March 31, 2026; they do not establish either company’s current share price, valuation, dividend yield, analyst expectations or results after that date. A larger lender or one with lower reported headline NPAs is not automatically the better investment at any price. An investor would need current market data and a view on valuation, earnings durability, risk tolerance and the assumptions already reflected in each share price.
For an operating comparison, the FY2025–26 reports point to a larger Bajaj Finance by reported AUM and PAT, a broad product franchise at Bajaj, and a smaller but growing Chola with notable vehicle-finance and secured-credit balances. Asset-quality and return figures require careful attention to labels and adjustments before drawing conclusions.
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