Bajaj Finserv Q4 profit up 5% at ₹2,539 crore; board recommends 150% dividend

Bajaj Finserv reported a modest 5% year-on-year rise in consolidated net profit for the March quarter, even as strong growth in its lending and insurance businesses continued to drive overall performance.

Consolidated profit after tax came in at ₹2,539 crore for Q4 FY26, compared to ₹2,417 crore in the same period last year.

Total income for the quarter rose 5.7% to ₹38,494 crore, supported by steady growth across key subsidiaries.

Dividend of ₹1.5 per share announced

The board has recommended a dividend of ₹1.50 per equity share, translating to a 150% payout on a face value of ₹1.

“This includes a special payout of ₹0.20 (20%), in celebration of 100 years of the Bajaj Group,” the company said.

The dividend will be paid subject to shareholder approval at the annual general meeting scheduled for July 31, 2026.

Full-year profit crosses ₹9,800 crore

For the full year, Bajaj Finserv reported its highest-ever performance, with consolidated total income rising to ₹1,50,530 crore.

Profit after tax stood at ₹9,801 crore, surpassing the previous year’s record.

The company noted that the results were impacted by one-time provisions and regulatory adjustments during the year.

One-offs and market volatility impact reported numbers

During FY26, the company took an accelerated expected credit loss (ECL) provision and also accounted for a one-time charge related to new labour codes.

“An accelerated ECL provision of ₹1,406 crore was made… [and] one-time charge of ₹379 crore towards New Labour Codes,” the company said.

Additionally, market volatility during the quarter led to mark-to-market losses on investment portfolios, weighing on reported income.

“Market volatility… has led to significant mark to market (MTM) losses… thereby impacting the revenue growth for the quarter,” it added.

Bajaj Finance continues to anchor growth

The group’s lending arm, Bajaj Finance, remained the key growth driver.

Profit after tax for Bajaj Finance rose 22% year-on-year to ₹5,464 crore in Q4, while assets under management crossed ₹5 lakh crore during the year.

The company also crossed a milestone of 50 million new loans booked in a year.

Insurance business sees steady traction

Bajaj General Insurance reported stable profitability, while Bajaj Life Insurance saw strong growth in new business metrics.

Net value of new business (VNB) for Bajaj Life rose 29% year-on-year in Q4, reflecting improved product mix and profitability.

During the year, Bajaj Finserv completed the acquisition of Allianz’s stake in its insurance ventures, taking full ownership.

“Both insurance companies are now ‘100% Bajaj – Made in India, Made for India, Made by India’,” the company said.

The move marks one of the largest exits by a global insurer from a domestic joint venture in India.

The company continues to invest in newer verticals, including health, digital platforms and asset management.

Losses from these emerging businesses stood at ₹539 crore for FY26, in line with its growth strategy.

Shares of Bajaj Finserv ended 1.28% lower at ₹1,741.70 apiece on the NSE on Wednesday. The stock has declined over 10% in the past year, compared with a nearly 1.5% drop in the benchmark Nifty 50 during the same period.