1 week Ago By Moneycontrol
India’s largest non-bank lender, Bajaj Finance, is gearing up to report a solid set of numbers for the January–March quarter (Q4FY25), driven by strong loan growth. The company is scheduled to announce its Q4 results on April 29, 2025. According to Moneycontrol's poll, Bajaj Finance’s net interest income (NII) is expected to stand at Rs 9,660 crore in Q4FY25, reflecting a 20 percent year-on-year (YoY) increase from Rs 8,013 crore in Q4FY24.
Net profit is also expected to show a healthy 15 percent YoY growth, reaching Rs 4,400 crore in Q4FY25, compared to Rs 3,825 crore in the same quarter of the previous year. Estimates of analysts polled by Moneycontrol are shown to be in a narrow range, meaning any positive or negative surprises may elicit a sharp reaction in the stock price. Among the brokerages polled, JM Financial rolled out the most bullish projections while Elara Capital forecasted the slowest growth for Bajaj Finance.
What factors are driving the earnings? Strong loan growth: Analysts at Emkay Global anticipate that Bajaj Finance will post strong loan growth of 27 percent YoY and 5 percent quarter-on-quarter (QoQ), taking the loan book to Rs 4.1 lakh crore as of the March-ended quarter. Other operational metrics are also expected to remain robust.
Margins to contract: Analysts at Kotak Institutional Equities forecast that Bajaj Finance’s net interest margins will moderate by 41 basis points (bps) YoY or 14 bps QoQ, settling at 9.6 percent compared to 10 percent in the same quarter last year and 9.6 percent in Q3FY25.
Stable asset quality: Analysts at Axis Securities expect Bajaj Finance’s asset quality to remain stable during Q4FY25, which should support overall earnings growth. What to look out for in the quarterly show? Investors will keep a close watch on the management’s commentary regarding trends in asset quality and credit costs. Another important point to track will be the progress on long-range strategy, where it aimed to become the lowest-cost financial service provider to a 200-million customer franchise by FY29 and use artificial intelligence (AI) across businesses and functions.
During the January–March period, shares of Bajaj Finance soared by 31 percent, significantly outperforming the Nifty 50 index, which rose by 3 percent during the same timeframe. Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management.
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