Bajaj Finance Q2 Results: Profit Up 29% to ₹6,367 Crore, but Gold Loan Stress Sends Shares Down 3.3%

Profit up 29%, shares down 3.3%. Bajaj Finance reported a consolidated net profit of ₹6,367 crore for July–September 2026 after market hours on Monday, 19 October. When trading resumed after the Dussehra holiday on Wednesday, the stock fell to ₹925.10, the biggest loss on the Sensex, as investors focused on a rise in overdue gold loans and a warning on margins.

Bajaj Finance Q2 FY27 in numbers

Figures are as reported by The Economic Times and Business Today from the company’s results; growth rates for NII and PBT are our calculations from those figures. The share price is from BSE’s Sensex constituent data at Wednesday’s close (down ₹31.90, or 3.33%, from ₹957).

Provisions included ₹337 crore of what the company called “prudent management and macroeconomic provisions”, a buffer for possible future stress, according to Business Today.

Why the stock fell

Three concerns stood out in coverage of the results and the earnings call:

1. Gold loans. Bajaj Finance has a gold loan book of about ₹24,000 crore. Loans in Stage 2 and Stage 3 (overdue or non-performing) rose 15 basis points from the previous quarter, and the company said most of the rise came from short-term gold loans, a product it has since stopped offering.
2. Margins. With RBI raising rates, management indicated “marginal headwinds” on net interest margins, according to Nomura’s note as quoted by ET. NBFCs borrow from banks and markets, so their funding costs rise quickly when rates go up.
3. Regulatory points. Brokerages flagged questions on flexi and revolving loan products and on insurance distribution fees, both areas where rule changes could affect income.

Profit was in line with some estimates and slightly below consensus, per Nomura. Brokerages were split on the outlook but mostly kept positive ratings; we do not make stock recommendations.

Bajaj Finance and gold loans: what borrowers should know

A rise in overdue gold loans is worth noting even if you are not a shareholder. Gold prices have fallen about 3.5% from their 11 October peak (based on GoodReturns’ Mumbai retail quotes), and IBJA’s 24K rate fell 1.26% across the holiday alone. When gold falls, the value of the pledged jewellery drops relative to the loan, and lenders can ask for extra margin or more gold.

• If you have a gold loan, check your loan-to-value. RBI rules cap how much lenders can lend against gold, and a sharp fall in prices can push your loan close to that limit.
• Pay interest on time. Short-tenure bullet-repayment gold loans can roll into default quickly if you miss the due date.
• Read any auction notice carefully. Lenders must give notice before auctioning pledged gold.

Our gold loan guide explains loan-to-value limits and what happens on default.

If you hold a Bajaj Finance FD

Bajaj Finance is a large deposit-taking NBFC. Its quarterly profit, growing loan book and provisioning buffer do not suggest stress for depositors. But NBFC deposits are not covered by DICGC insurance, unlike bank deposits up to ₹5 lakh. Their safety depends on the company’s financial strength and credit rating.

FD rates at NBFCs have been rising this month as rates go up; our report on FD rate hikes at Shriram and Bajaj has the details, and our NBFC FD safety checklist lists what to check before investing. Spreading money across banks and highly rated NBFCs limits your exposure to any one issuer.

If you have a personal or consumer loan

Bajaj Finance is one of India’s biggest lenders for consumer durables, personal loans and small business loans. Rising funding costs usually reach borrowers through higher rates on new loans. Existing fixed-rate EMIs do not change, but floating-rate loans may be repriced. Check your loan’s key fact statement for whether the rate is fixed or floating and how often it resets.

Growth is still the story

Despite the share price reaction, Bajaj Finance’s AUM grew 26% year on year, and 360 One WAM’s note said management raised its FY27 AUM growth guidance to 26–27% from 22–24%. The company added 4.42 million customers in the quarter, per ET. The question investors are weighing is whether that pace can continue while rates rise and some segments, like short-term gold loans, show strain.

For the half year April–September, consolidated net profit rose 28% to ₹12,447 crore, according to Business Today.

The fall in Bajaj Finance shares was also part of a weak day for financial stocks: Nifty Bank fell 0.92% and smaller stocks fell more, as our market wrap for 21 October in this batch notes. RBI’s latest MPC minutes, also released today, say rate cuts are off the table for now, which keeps funding costs for NBFCs high.

What to watch next quarter

• Whether Stage 2 and Stage 3 loans stop rising once short-term gold loans run off.
• How much of the margin pressure from higher borrowing costs is passed on to borrowers.
• Any regulatory clarity on flexi loans and insurance distribution fees.
• Progress on the capital raise that brokerages expect this financial year.

Each of these will show up first in the next quarterly results and the management commentary that follows.

FAQs

What was Bajaj Finance’s Q2 FY27 net profit?

₹6,367 crore consolidated, up 29% year on year, as reported.

Why did Bajaj Finance shares fall?

Mainly on a rise in overdue gold loans, management’s comment on margin pressure, and regulatory questions on some products. The stock closed 3.33% lower at ₹925.10 on 21 October.

Is my Bajaj Finance FD safe?

The results show growing profits and provisions. But NBFC FDs are not DICGC-insured, so check ratings and keep amounts spread out.

Has Bajaj Finance stopped gold loans?

It said it has stopped offering short-term gold loans, where most of the rise in overdue loans came from. Its wider gold loan book continues.

Takeaway: Bajaj Finance grew profit 29% and AUM 26% in Q2, but overdue short-term gold loans and margin pressure sent the stock down 3.3%. Gold loan borrowers should watch their loan-to-value, and FD holders should remember NBFC deposits are not DICGC-insured.