Evaluate Bajaj Finance by asking whether the price reflects sustainable earnings and returns, then check whether growth is being achieved without a deterioration in credit quality or capital strength. The latest company snapshot available here is its consolidated Q1 FY27 presentation for the quarter ended 30 June 2026; it does not establish a current share price or valuation multiple. Any conclusion about whether the shares are cheap or expensive therefore requires a dated market price and comparable, consistently calculated financial data.
Start with the right periods and financial basis
Use like-for-like periods and keep consolidated numbers separate from standalone numbers. The figures below are consolidated unless noted otherwise. Bajaj Finance’s FY2026 annual report gives full-year context, while its Q1 FY27 investor presentation covers the quarter ended 30 June 2026. Quarterly growth and annualised returns are snapshots, not forecasts.
As an Amazon Associate I earn from qualifying purchases.
| Measure | FY2026 | Q1 FY27 |
|---|---|---|
| Assets under management (AUM) | ₹509,975 crore, up 22% year on year (FY2026 annual report) | Not stated in the cited Q1 FY27 figures |
| Net interest income (NII) | ₹44,110 crore, up 21% (FY2026 chairman’s letter) | ₹12,571 crore, up 23% year on year (quarter ended 30 June 2026; Q1 FY27 presentation) |
| Net total income | ₹53,324 crore, up 21% (FY2026 chairman’s letter) | ₹15,224 crore, up 22% year on year (quarter ended 30 June 2026; Q1 FY27 presentation) |
| Profit after tax (PAT) | Reported ₹19,332 crore, up 15%; adjusted ₹20,689 crore, up 24%, on the company’s stated exclusions (FY2026 chairman’s letter) | ₹6,081 crore, up 28% year on year (quarter ended 30 June 2026; Q1 FY27 presentation) |
| Return on equity (ROE) | Not stated in the cited FY2026 figures | 20.4% annualised, versus 19.0% in Q1 FY26 (quarter ended 30 June 2026; Q1 FY27 presentation) |
| Gross and net NPA | GNPA 1.01%; NNPA 0.41% (FY2026 annual report) | GNPA 0.96%; NNPA 0.39% as of 30 June 2026 (Q1 FY27 presentation) |
Sources: Bajaj Finance FY2026 annual report, FY2026 chairman’s letter, and Q1 FY27 investor presentation.
How to judge valuation
A valuation multiple is meaningful only when its date, price basis and earnings or book-value basis are clear. The figures above do not provide a current market price, current market capitalisation, peer multiples or the complete inputs needed to calculate a current P/E or P/B. Do not infer that the shares are cheap or expensive from earnings growth alone.
#1 Best Overall
- Enough forms for 1 year for churches of approximately 150 members
- 5 3/16" x 9"
- Includes forms for church receipts, member contributions, and disbursements
Price-to-earnings (P/E)
Calculate P/E using a date-stamped share price or market capitalisation and a stated earnings measure for the same company basis. Specify whether earnings are trailing reported PAT, a consistent full-year figure, or adjusted earnings, and explain any exclusions. The company’s FY2026 chairman’s letter reports PAT of ₹19,332 crore. Its adjusted PAT of ₹20,689 crore excludes an additional ECL provision of ₹1,406 crore, management and macroeconomic overlays of ₹142 crore, and a one-time labour-code charge of ₹265 crore. These bases are not interchangeable: present reported earnings first and identify the company’s adjustments if using the adjusted figure.
Price-to-book (P/B) and returns
Compare P/B with sustainable ROE, not in isolation. A higher P/B may be easier to justify when returns can persist without excessive credit risk or capital strain; weaker or more volatile returns make a high multiple harder to support. Use the same reporting date and consolidated or standalone basis for price, book value and ROE, and consider how much capital the lender needs to support future growth. The Q1 FY27 annualised ROE of 20.4% is a single-quarter measure, not evidence that the same return will recur.
Compare peers carefully
If you compare Bajaj Finance with Indian banks or non-bank lenders, align fiscal periods, accounting bases, product mix, and asset-quality definitions. Label each peer multiple with its price date and source. A comparison using unmatched definitions or stale prices can make apparent valuation differences misleading.
Free tools Windows power users keep installed
One-click scans. No signup required.
Check whether growth is translating into durable returns
Growth in assets and income can support shareholder value, but only if it produces adequate returns after funding, operating and credit costs. Bajaj Finance’s FY2026 AUM grew 22% year on year; its FY2026 NII and net total income each grew 21%. In Q1 FY27, consolidated NII grew 23% and net total income grew 22% year on year. These figures show growth in the reported periods, not whether the resulting returns are sustainable.
Read income growth alongside PAT, ROE, credit costs and capital. In Q1 FY27, consolidated PAT grew 28% year on year to ₹6,081 crore and annualised ROE was 20.4%, compared with 19.0% in Q1 FY26. Before treating that as a durable trend, check subsequent quarters and the drivers behind earnings, including funding costs and credit provisions. The cited figures do not give a funding-cost measure, so assess it in the company’s latest disclosures rather than assuming it is stable.
Read asset quality beyond the headline NPA ratios
GNPA and NNPA are useful point-in-time indicators, but they do not capture every sign of emerging stress. At 30 June 2026, Bajaj Finance reported consolidated GNPA of 0.96% and NNPA of 0.39%, compared with 1.03% and 0.50%, respectively, at 30 June 2025. The Q1 FY27 presentation reported a stage-3 provision coverage ratio of 60%. Compare those figures with credit costs, provisions and stage 2/3 movements over multiple periods.
Separate reported provisions from adjusted comparisons
Q1 FY27 loan losses and provisions were ₹1,993 crore, including a ₹296 crore prudent management and macroeconomic provision. The company’s presentation gives ₹1,697 crore excluding that provision and says the ex-provision amount was down 14% year on year. Keep the reported total and the company’s adjusted comparison distinct: the overlay is part of reported provisions, while excluding it changes the comparison basis.
The Tool Desk
Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Management’s FY2026 chairman’s letter called the company “among the lowest risk companies in India” and cited GNPA of 1.01% and NNPA of 0.41%. Treat that as management’s characterization, not an independently verified ranking. A cross-company risk comparison needs peer data using aligned definitions and periods.
Best Value
Check capital before assuming growth can continue
Capital adequacy helps indicate the buffer available to support lending and absorb losses. Bajaj Finance reported consolidated capital adequacy of 20.90%, including Tier 1 capital of 20.01%, as of 30 June 2026. Consider these alongside the pace of AUM growth, provisions and returns; one quarter’s capital ratio does not establish how much capacity will remain under different growth or loss conditions.
A practical review checklist
- Record the share-price date and use a matching market capitalisation or share-price basis.
- Calculate P/E with a clearly identified reported earnings basis; show any company-adjusted basis separately and list the exclusions.
- Calculate P/B from book value on a matching reporting date, then assess it alongside sustainable ROE and capital needs.
- Compare AUM, NII, net total income and PAT growth across like-for-like periods rather than relying on one quarter.
- Track GNPA, NNPA, stage 2/3 movement, provision coverage, and loan losses and provisions; distinguish reported figures from comparisons that exclude overlays.
- Review funding costs and capital adequacy in the latest company disclosures, and compare peers only on aligned periods and definitions.
- Refresh results and material disclosures from the Bajaj Finance investor-relations page before making a decision.
This framework is educational and does not account for an individual investor’s objectives, risk tolerance or financial circumstances.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
