Bajaj Finserv Q3FY26 net flat at Rs 2229 crore on one-time provisions

MUMBAI: Bajaj Finserv reported consolidated profit after tax of Rs 2,229 crore for the December quarter, flat compared with Rs 2,231 crore a year earlier, as higher provisions and one-time charges offset underlying growth across its businesses. Excluding these exceptional items, consolidated profit after tax rose 32% year-on-year to Rs 2,936 crore .


Bajaj Finance, the group’s largest business, reported a decline in reported profit after tax to Rs 3,978 crore from Rs 4,246 crore in the year-ago quarter, reflecting higher provisioning. Excluding the impact of accelerated expected credit loss provisions and the one-time labour code charge, profit after tax rose 23% to Rs 5,227 crore. Its mortgage arm, Bajaj Housing Finance, reported a 21% rise in profit after tax to Rs 665 crore.


Bajaj General Insurance reported profit after tax of Rs 399 crore, marginally lower than Rs 400 crore a year earlier. Excluding the one-time labour code charge, profit after tax increased 8% to Rs 430 crore. Gross written premium rose 12% to Rs 7,389 crore, while the combined ratio improved to 97.9% from 101.1%.


Bajaj Life Insurance reported a loss of Rs 31 crore for the quarter, compared with a profit of Rs 222 crore a year ago. Excluding the one-time labour code charge, profit after tax stood at Rs 12 crore. Operating metrics improved, with the value of new business rising 59% year-on-year to Rs 405 crore.


During the quarter, the group took an accelerated ECL provision of Rs 1,406 crore and a one-time charge of Rs 379 crore towards the implementation of new labour codes, which together reduced consolidated profit after tax by Rs 707 crore.


In January, Bajaj Finserv completed the acquisition of Allianz SE’s 23% stake in its general and life insurance subsidiaries, raising its holding to 75.01% in both companies. The transaction will be reflected in the financials from the acquisition date.