Bajaj Finance Q2 profit up 29%; board clears Rs 17,500 crore raise

Bajaj Finance, the non-banking finance company, reported a 29% rise in consolidated profit after tax to about Rs 6,367 crore for the July-September quarter, up from Rs 4,948 crore a year earlier, in results reported on Monday, October 19, 2026. Its assets under management grew 26% to Rs 5,84,624 crore, it raised its growth forecast for the year to 26-27%, and its board approved plans to raise Rs 17,500 crore through a qualified institutional placement and a preferential issue to promoters.

With 128.85 million customers, Bajaj Finance's numbers are a useful reading of how much Indian households and small businesses are borrowing. Adding 4.42 million customers in three months, and lifting its growth forecast for the year, suggests that demand for consumer credit stayed strong through the quarter that led into the festive season.

The capital raise is the bigger signal. A non-bank lender can only lend a certain multiple of its own capital. By planning to raise Rs 17,500 crore, partly from large investors through a QIP, in which a listed company sells new shares to institutions, and partly from its promoters, Bajaj Finance is preparing its balance sheet for faster loan growth. The promoters putting in money through a preferential issue also shows the group's own confidence in the business.

There are points to watch. When loans grow this fast, lenders must keep a close eye on repayments. Retail inflation rose to 5.54% in September 2026, according to official data, which could squeeze some borrowers' budgets. Investors will look at the company's bad-loan figures and credit costs as closely as its profit.

For small businesses and households, the practical effect is that credit from large non-bank lenders is likely to remain easy to get in the festive months. Borrowers should still compare interest rates and fees across lenders before signing up.

Short-term: With more capital on the way and a raised growth forecast, Bajaj Finance is set to keep lending aggressively through the festive season. Existing shareholders face some dilution when the new shares are issued.

Long-term: If the capital raise is completed, the company will have room to grow its loan book for several years without stretching its balance sheet. Its performance will continue to be a bellwether for consumer credit in India.

Who is affected: Bajaj Finance's 128.85 million customers; shareholders, who face dilution from the share issue; institutional investors who may take part in the QIP; competing banks and non-bank lenders; and the regulator watching consumer credit growth.

What should a reader note? This report is information, not investment advice. Anyone taking a consumer loan should check the full cost, including processing fees, before borrowing.

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