Bajaj Finance Q3 Net Profit Falls 6% to Rs 4,066 Crore, NII Rises 21%
**Market Brief: Bajaj Finance Q3 FY26 Results**
**Overview**
Bajaj Finance reported a mixed set of numbers for Q3 FY26. While headline profit declined due to significant one-time provisions, core operating metrics remained robust, driving a positive market reaction.
**Key Financial Figures**
* **Net Profit:** **₹4,066 crore** (Down **5.6%** YoY).
* **Net Interest Income (NII):** **₹11,318 crore** (Up **21%** YoY).
* **Assets Under Management (AUM):** **₹4.84 lakh crore** (Up **22%** YoY).
* **Adjusted Profit:** Excluding one-offs, profit would have stood at **₹5,317 crore** (Up **23%** YoY).
**Why Did Profit Decline?**
The bottom line was impacted by two major exceptional items:
1. **Accelerated ECL Provision:** A charge of **₹1,406 crore** to strengthen the balance sheet.
2. **Labor Code Impact:** A one-time gratuity-related expense of **₹265 crore** stemming from new labor codes.
**Operational Highlights**
* **New Loans:** Booked **13.90 million** new loans, a **15%** increase YoY.
* **Customer Base:** Expanded by **19%** YoY to reach **115.4 million**.
* **Asset Quality:** Gross NPA rose slightly to **1.21%** (from 1.12% YoY), while Net NPA improved marginally to **0.47%** (from 0.48% YoY).
**Market Reaction**
Despite the reported profit drop, the stock surged approximately **6-7%** in intraday trade, reaching levels around **₹964**. Investors focused on the strong **21%** NII growth and the healthy underlying operating performance (adjusted profit up **23%**).
**Analyst Sentiment**
Brokerages largely maintained a **Buy** rating, viewing the provisions as a prudent, one-time cleanup rather than a structural issue. The average price target remains elevated above current levels, signaling confidence in the lender's long-term growth trajectory.