Bajaj Finance Ltd, a leading non-banking financial business in India, announced Q4 results for FY 25 on 29th April, 2025. The company posted a consolidated net profit of Rs 4,480 crore, up 17 percent on a year-on-year basis, against Rs 3,830 crore in Q4 FY24. This performance highlights Bajaj Finance’s robustness and expansion in a fiercely competitive lending arena.
Robust Financial Performance
The 17% increase in net income was driven by solid lending growth as well as additional customers. Its assets under management (AUM) crossed Rs 3 lakh crore, affirming its leadership position in consumer and SME lending. The company brought in more than 3.8 million new customers in the quarter, surpassing over 80 million total. Though the exact details of the Q4 FY25 revenue are not disclosed publicly, it is anticipated that the company’s net interest income (NII) has grown considerably driven by strong loan disbursements in consumer, SME and rural segments.
Due to their large dividends and corporate actions
As part of rewarding its shareholders, Bajaj Finance declared a special interim dividend of Rs 12 per share and recommended a final dividend of Rs 44 per share for FY25, making it Rs 56 per share. These dividends demonstrate the strength of our cash flow and our commitment to creating value for our shareholders.
The board also cleared a 1:2 stock dividend, that will reduce the face value of each share in the company by half, and a 40 per cent bonus issue, that would see each shareholder get four more shares for every share held, subject to shareholder approval. The moves are intended to increase liquidity and make it easier for retail investors to access the stock, which may also increase trading volumes. The stock split and bonus issue are to be completed in the next few months, pending regulatory and shareholder approval.
Stock Market Dynamics
In the run-up to the results, Bajaj Finance’s stock saw some volatility, with investors turning cautious with shares trending in the red. However, the stock jumped post the result announcement on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), indicating the market’s universe approval of the robust earnings and shareholder-friendly policies. The stock of the company has traded in the previous 52 weeks between Rs 9,660 and Rs 6,375.70 (Screener).
Analyst Perspectives
Analyst reaction to the Q4 results was mixed. Most of those who complimented the company pointed towards its steady growth, strong customer addition and steady asset quality (gross non-performing assets and net non-performing assets are well contained). Indeed, the firm’s digital initiatives and cross-selling potential was mentioned as a growth catalyst.
Yet some analysts sounded a note of warning. Motilal Oswal has rated Bajaj Finance as neutral on account of lower-than-expected FY25 guidance and risks to new product (auto loans, tractors, commercial vehicles, microfinance) (ET Markets). There were questions around rising credit costs and margin pressures, though the company’s longer-term growth trajectory is still on track.
Position of the Market by Bajaj Finance
Bajaj Finance, the financial arm of Bajaj Finserv, is a deposit-taking NBFC engaged in consumer durables finance, mortgage loans, personal loans, working capital loans, loan against securities and SME lending. Market capitalisation of the company stands at Rs 5.65 lakh crore, a 33.2 per cent increase over the previous year, which shows strong confidence of the investors (Screener). Company’s promoter holding is strong at 54.7% indicating robust internal control.
Investments in digital transformation including a mobile app-based lending service, and partnerships with e-commerce giants, have supported the company’s scaling ability, the NBFC claims. Bajaj Finance, which has more than 80 million customers, is sitting pretty as it hopes to take advantage of the increasing demand for retail credit in a country like India, especially in urban and semi-urban areas.
Implications for Investors
There are several positive consequences if you’re a shareholder of Q4’s results. The special dividends and final dividends may give immediate income, while additional stock split/bonus issue planned may benefit future capital gain. A stock split reduces the per share price, making it more accessible to retail investors, while a bonus issue increases the number of shares held, which can lead to higher returns if the stock price appreciates.
That said, investors should still not ignore the cautious FY25 guidance and analyst worries about the n On the issue of FL/PL, the fundamentals of Bajaj Finance are solid, but negative impact can result from external factors like increasing interest rates or adverse regulatory measures in the NBFC space.
Looking Ahead
Bajaj Finance Q4 FY25 results further cement its leadership in the Indian financial services sector. The firm’s ability to generate sustainable profit growth, amplify clientele numbers, and offering dividends and corporate action incentives make the stock tasty for investors. But with the various analysts not reaching total common ground, investors may want to watch the company as it executes in the newer areas of play, and avoids any potential headwinds from FY25.
As Bajaj Finance keeps innovating and expanding its reach, its emphasis on digital lending, customer centric products, and operational efficiency is expected to contribute toward its success in the future. In the meantime, shareholders can now enjoy a strong quarter and think of the possible windfalls from the stock split and bonus issue.
Financial Snapshot
|
Metric |
Q4 FY25 |
Q4 FY24 |
Change (%) |
|---|---|---|---|
|
Net Profit (Rs Cr) |
4,480 | 3,830 | +17% |
|
Assets Under Management (Rs Cr) |
>3,00,000 |
Not Available |
Significant |
|
New Customers Added |
3.8 Million |
Not Available |
– |
|
Total Customer Base |
>80 Million |
Not Available |
– |
Disclaimer: This article is for informational purposes only. It is not investment advice. FinanceTract isn’t affiliated with Bajaj Finance. Verify details via official filings at www.bajajfinserv.in.
