Bajaj Finserv Delivers Strong Sequential Profit Growth in Q1 FY27

Bajaj Finserv has started the new fiscal year with solid momentum, reporting healthy growth in both revenue and profit for the quarter ended June 2026. The diversified financial services group saw its profit after tax grow faster than revenue on a sequential basis, indicating an improvement in profitability from the preceding quarter.

Revenue for Q1 FY27 stood at ₹42,036.9 crore, a 19.1% increase compared to the same quarter last year. Profit after tax grew 18.2% year-on-year to ₹6,296.7 crore. The more striking performance came on a quarter-on-quarter basis, where profit surged 20.5%, significantly outpacing the 9.2% sequential revenue growth. This drove the net profit margin to 15.0%, up from 13.6% in Q4 FY26, though it remains slightly below the 15.1% margin from a year ago.

A look at the recent quarterly trajectory shows a clear recovery in profitability over the past two quarters.

The trailing-twelve-month (TTM) net profit margin stands at 13.1%, suggesting the latest quarter's performance is a positive step towards improving overall profitability.

Beyond the headline earnings, the company maintains a strong return on equity of 26.47%. The stock, which closed at ₹2,008.3 on the results date, has delivered a 35.5% absolute return over the past three years, translating to a 10.7% compound annual growth rate. At a P/E of 26.6, the stock trades at a 34% premium to its industry average, reflecting the market's confidence in its diversified financial services model.

The key challenge for Bajaj Finserv will be to sustain this improved margin profile while continuing its robust revenue growth in the coming quarters.