Bajaj Finance Ltd Q2 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kunal Shah - Citibank Cameroon SA (Douala Branch) - Analyst : So firstly, with respect to growth, you indicated mortgages and SME growing slightly slower. But again, at the same point in time, festive appears to be quite strong. and everyone seems to be quite constructive on the growth. So are there any other segments which you would be worried about in terms of like pulling back on the growth side because new businesses are also scaling up well? Or it is only on account of these two product segments that we are revising the guidance lower?

Question: Kunal Shah - Citibank Cameroon SA (Douala Branch) - Analyst : Okay. And in fact, now rural B2C would also start given that is turning into grain, that will also contribute to the overall growth?

Question: Kunal Shah - Citibank Cameroon SA (Douala Branch) - Analyst : Okay. And secondly, with respect to asset quality. So Stage 3, it's moving up. Would it be fair to assume that large part of this flow is from stage 2, maybe net number is quite small. But including that, otherwise, when we look at it, like maybe the GST increases all across the LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. NOVEMBER 10, 2025 / 1:00PM, BJFN.NS - Q2 2026 Bajaj Finance Ltd Earnings Call segments, when you look at it, all the product segments have seen a significant increase. So that's largely the flow only the flow-through, which is there?

Question: Sucrit Patil - Eyesight Fintrade Pvt Ltd. - Analyst : I have two questions. But first is it's a following question. As more fintechs and NBCF scale up across India, what is Bajaj Finance doing to build a strong edge not just through AUM or an app downloads, but something more deeper like we are working or thinking that grows over the time and makes your competitors had to op your model?

Question: Sucrit Patil - Eyesight Fintrade Pvt Ltd. - Analyst : My final question, again, a forward-looking one, is about margins and cost planning. As growth picks up and costs go up, whether it is tech, compliance or collections or any other things, how do you manage to keep the profit line in -- profits in line without cutting any corners? Are there any smart ways you have built into your systems or you will be implementing that will help you stay efficient even when things are getting costlier? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. NOVEMBER 10, 2025 / 1:00PM, BJFN.NS - Q2 2026 Bajaj Finance Ltd Earnings Call

Question: Piran Engineer - CLSA Ltd - Analyst : Congrats on the quarter. Just a simple on B2C. Yes, so just wanted to get some sense on how things stand in rural unsecured rural B2C in terms of -- you used to give this data on how many customers are 3PL and above and how that has been higher than history. Is the fundamentals also improving just in terms of over level.

Question: Piran Engineer - CLSA Ltd - Analyst : Okay. And this is on incremental or it is on your book like 4%.

Question: Piran Engineer - CLSA Ltd - Analyst : Got it. Got it. And just secondly, you had mentioned captive two-wheelers, which is 1.5% of the book is 9% of loan losses. So it's 9% of this INR2,200 crores credit cost number?

Question: Piran Engineer - CLSA Ltd - Analyst : So the noncaptive would be how much? Just want to get a sense of what's the decree --

Question: Piran Engineer - CLSA Ltd - Analyst : I mean in credit costs.

Question: Piran Engineer - CLSA Ltd - Analyst : Okay. That puts some context.

Question: Ashish Sharma - Oaklane Capital Management - Analyst : Just one question on credit costs. So have you given the guidance for FY27, given that now we'll be closer to the upper end of the guidance at 1.5 but you seem to be confident about the credit cost outcome outlook for FY27. Have you given a number for that? What would be the normalized credit costs?

Question: Ashish Sharma - Oaklane Capital Management - Analyst : Just confirming one thing. In terms of the MSME guidance of 10% to 12%, do you think given given the current scenario, the number -- 10% to 12% is a very conservative guidance or is a realistic number?

Question: Ashish Sharma - Oaklane Capital Management - Analyst : Yes.

Question: Ashish Sharma - Oaklane Capital Management - Analyst : Sure, sure. Perfect. That's helpful.

Question: Avinash Singh - Global Market Insights Inc - Analyst : Quickly, if you can help, I mean, the softness in other operating income, is it, I mean, lower recoveries account? Or is it on the lower marketing fees and all? That's one. And in FY27, credit guidance, I understand that, I mean, of course, the captive two-wheeler going out and gold and new vehicle increasing. But is there some risk? I mean now your customer franchise is close to INR12 crores, you go further deeper, than each of the business lines where you are probably are going to a more -- or a bit of a slightly at the margin risk and customer. So I mean, is that understanding wrong? Or I mean -- or will you see some impact from that part because you are going perhaps deeper in each of the product segment?