Bajaj Finserv Limited (BFS) on Wednesday said its Board of Directors approved the consolidated financial results for the quarter ended December 31, 2025 (Q3 FY26).
During the quarter, the company said it undertook measures to strengthen balance sheet resilience. Bajaj Finance implemented a minimum Loss Given Default (LGD) floor across all businesses, resulting in an accelerated Expected Credit Loss (ECL) provision of about Rs 1,406 crore.
In addition, BFS and its subsidiaries accounted for a one-time charge of around Rs 379 crore towards the New Labour Codes notified on November 21, 2025.
The net impact of these items on consolidated profit after tax was around Rs 540 crore for the accelerated ECL provision and about Rs 167 crore for the New Labour Codes, the company said.
Consolidated income and profit for Q3
For Q3 FY26, consolidated total income stood at Rs 39,708 crore before the impact of these items and Rs 32,042 crore after the impact, compared with Rs 32,042 crore in Q3 FY25.
Consolidated profit after tax stood at Rs 2,936 crore before the impact and Rs 2,229 crore after the impact, compared with Rs 2,231 crore in the year-ago quarter.
For the nine months ended December 31, 2025 (9M FY26), consolidated total income stood at Rs 1,12,562 crore before the impact and Rs 97,226 crore after the impact, compared with Rs 97,226 crore in 9M FY25. Consolidated profit after tax was Rs 7,969 crore before the impact and Rs 7,262 crore after the impact, compared with Rs 6,456 crore in the corresponding period last year.
Core finance business performance
BFS said that under Ind AS, its insurance subsidiaries classify a part of their equity investments as Fair Value Through Profit and Loss (FVTPL) and the balance as Fair Value Through Other Comprehensive Income (FVTOCI), which can result in temporary volatility in reported profits due to unrealised mark-to-market movements.
In the finance and insurance businesses, Bajaj Finance added 4.76 million customers and booked 13.90 million new loans during Q3 FY26. Before the impact of the accelerated ECL provision, New Labour Codes and related taxes, its consolidated profit after tax for the quarter rose 23 per cent year-on-year. Its mortgage subsidiary, Bajaj Housing Finance Limited (BHFL), recorded a 21 per cent increase in profit after tax.
Bajaj Finance’s assets under management (AUM) stood at Rs 4,84,477 crore as on December 31, 2025, compared with Rs 3,98,043 crore a year ago. Gross non-performing assets stood at 1.21 per cent and net non-performing assets at 0.47 per cent. The capital adequacy ratio stood at 21.45 per cent.
General and life insurance business performance
Bajaj General Insurance reported a 12 per cent increase in gross written premium to Rs 7,389 crore in Q3 FY26. Excluding tender-driven crop and government health insurance business, gross written premiums rose 17 per cent. The combined ratio improved to 97.9 per cent during the quarter. Profit after tax stood at Rs 399 crore, while profit before the one-time charge related to New Labour Codes was Rs 430 crore.
Bajaj Life Insurance recorded a 27 per cent rise in new business premium to Rs 3,501 crore in Q3 FY26. Retail weighted received premium increased 20 per cent during the quarter. Net value of new business rose 59 per cent to Rs 405 crore, reflecting changes in product structure, mix and cost optimisation. Shareholders’ profit after tax stood at a loss of Rs 31 crore, largely due to the loss of GST input tax credit and the one-time labour code charge.
Allianz stake acquisition
The company said its emerging businesses, including Bajaj Finserv Health, Bajaj Finserv Direct and Bajaj Finserv Asset Management, continued to scale up. Losses from these businesses stood at around Rs 138 crore during the quarter, as planned. Bajaj Finserv Asset Management reported assets under management of Rs 30,250 crore as on December 31, 2025.
Separately, BFS said that on January 8, 2026, it and other Bajaj Group entities completed the acquisition of a 23 per cent equity stake held by Allianz SE in Bajaj General Insurance and Bajaj Life Insurance.
Following the transaction, BFS now holds 75.01 per cent stake in each of the two insurance subsidiaries, while the Bajaj Group collectively holds 97 per cent. The transaction will be accounted for from the acquisition date.
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