Bajaj Finserv's annual net profit surges by 30%, amounting to Rs 2,789 crores
Bajaj Finserv and Poonawalla Fincorp, two prominent financial services companies in India, have reported contrasting financial results for the first quarter of the year.
Bajaj Finserv's Robust Performance
Bajaj Finserv, led by Sanjiv Bajaj, has reported a significant 30% year-on-year (YoY) increase in its net profit for Q1. The key drivers behind this growth include a strong performance in interest income, insurance premiums, and fee-based revenues.
The company's core lending business has shown robust growth, reflected in the strong increase in interest income. The life insurance segment has also seen a 39% growth in the value of new business, while the general insurance business gross written premium increased by 9%, totalling Rs 5,202 crore. This growth was observed across all core business lines.
The consolidated total income of Bajaj Finserv rose by 13% to Rs 35,451 crore, supporting overall profitability. Profit before tax (PBT) surged 30.4% quarter-on-quarter (QoQ) to ₹7,203.02 crores, underscoring strong operational resilience and strategic execution across subsidiaries.
Poonawalla Fincorp's Challenging Quarter
In contrast, Poonawalla Fincorp has reported a 78% drop in its Q1 net profit. While the exact reasons for this sharp decline are not explicitly detailed, typical contributing factors could include weakening in the core lending or financing business performance, elevated credit costs, reduced loan book growth, or operational challenges and one-time expenses.
However, it's important to note that no direct information on Poonawalla Fincorp's Q1 financials was found, so a precise explanation for its profit drop cannot be confirmed without additional data.
Other Notable Developments
- Laurus Labs invested Rs 45 crore in JV KRKA Pharma for a new manufacturing unit.
- Sanjiv Bajaj announced receipt of approvals for Allianz's stake purchase from the Competition Commission of India and IRDAI. Approval from the Registrar of Companies will also be required for the name change.
- The first tranche, comprising a minimum of 6.1%, is to be completed within six months following IRDAI approval.
- The life insurance segment of Bajaj Finserv reported a net loss of Rs 142 crore during the quarter.
- Bajaj Finserv Asset Management recorded assets under management (AUM) of Rs 25,011 crore as of June 30, 2025.
- Bajaj Finserv's emerging businesses reported a net loss of Rs 142 crore during the quarter.
- Following the fundraising, the holdings of Adar Poonawalla-controlled Rising Sun will increase from 62.46% to 63.99% in Poonawalla Fincorp.
- One company has received approval for a name change, while they are awaiting approval for the other insurance subsidiaries.
- As of June 30, 2025, Bajaj Finserv's life insurance market share is 6.5%.
- The life insurance business profit of Bajaj Finance increased by 39%, reaching Rs 145 crore.
- The profit after tax for the general insurance business of Bajaj Finance increased by 15% to Rs 660 crore.
- Poonawalla Fincorp's Assets Under Management increased by 53%, reaching Rs 41,273 crore.
- Bajaj Finance reported a 20% year-on-year rise in profit, amounting to Rs 4,699 crore.
- Poonawalla Fincorp's net profit declined by 78.5% to Rs 63 crore for the June quarter.
- Bajaj Finserv reported a 30% year-on-year increase in net profit to Rs 2,789 crore for Q1.
In summary, Bajaj Finserv's profit surge is driven by diversified income streams and robust operational performance, while Poonawalla Fincorp's sharp decline requires further financial disclosures for precise analysis.
- The investment of Rs 45 crore by Laurus Labs in JV KRKA Pharma indicates new opportunities in the market for business expansion.
- Sanjiv Bajaj's announcement of approvals for Allianz's stake purchase from the Competition Commission of India and IRDAI signifies regulatory compliance in the investment sector.
- The first tranche of the stake purchase by Adar Poonawalla-controlled Rising Sun will increase their holdings in Poonawalla Fincorp, demonstrating confidence in the banking sector.
- The reports of Bajaj Finserv's net profit increase in the finance sector, combined with the growth in Poonawalla Fincorp's Assets Under Management, highlight the potential for investments and business growth in the banking and financial market.
