Bajaj Finance Q2 FY27 Update: Why AUM Grew 26.5% While New Loans Rose Just 11%

Bajaj Finance added approximately ₹37,800 crore to AUM during Q2 FY27. Its deposit book stood at approximately ₹69,750 crore at the quarter-end.

Comparison note: The company said year-on-year new-loan volume growth was not directly comparable because the festival season started earlier last year. These figures come from a provisional business update, rather than the full quarterly results.

Sources: company business updates and results as reported by Upstox, Business Standard and Business Standard Q1 FY27.

Three things stand out. First, the ₹37,800 crore added in Q2 FY27 is about 82% more than the roughly ₹20,800 crore added in the same quarter last year. Second, AUM growth picked up to 26.5% from 23.9% in Q1, even as loan-count growth halved. Third, deposits were broadly flat year on year and rose only about ₹1,200 crore from June. With deposits flat, more of the growth has to be funded through market borrowings and equity, which puts the fundraise in context.

Why did Bajaj Finance shares rise today?

Bajaj Finance shares rose about 4% on 5 October 2026 because AUM growth sped up to 26.5% and the board approved a ₹17,500 crore capital raise to fund further lending. The stock opened 1.5% higher at ₹962.55 and about 3.5 million shares worth ₹364.97 crore changed hands in the first 30 minutes, according to Business Standard.

The ₹17,500 crore fundraise, in two parts

• QIP of up to ₹11,700 crore: new equity shares sold to qualified institutional buyers such as mutual funds, insurers and foreign funds.
• Preferential warrants of up to ₹5,800 crore: issued to promoter Bajaj Finserv and convertible into equity later. The issue price will be fixed at a later date.

At a market capitalisation of about ₹6.11 lakh crore, the full raise equals roughly 2.9% of the company's value. Bajaj Finance does not need the money to meet rules today: its capital adequacy ratio was 20.90% in June, well above the 15% that RBI requires of large NBFCs. The raise is growth capital. A lender adding ₹37,000 crore or more of loans each quarter has to keep adding equity to hold its leverage steady. The promoter putting in ₹5,800 crore of its own money is the part the market usually reads as a vote of confidence.

Why Did Bajaj Finance’s AUM Grow Faster Than New Loan Bookings?

AUM and new loans booked measure different things. AUM captures the value of the outstanding loan portfolio at the quarter-end, while new loans booked counts fresh loans issued during the quarter.

The difference between 26.5% AUM growth and 11% loan-booking growth does not, by itself, prove that average loan sizes increased. Loan tenure, repayments, ticket sizes and product mix can all influence the comparison.

Bajaj Finance also flagged an earlier festival season last year as a factor affecting the loan-volume comparison. Further disclosures are needed to establish which lending segments drove AUM growth.

What the chart is saying

Before today, the stock had corrected nearly 20% from its recent high, according to technical analyst Harish Jujarey, quoted by Business Standard. He identified support near ₹936, the 61.8% Fibonacci retracement level, and resistance around ₹1,020. Even after Monday's jump, the stock sits about 16% below its 52-week high of ₹1,176.40.

Learn to read the filing before the headline does

Bajaj Finance's business update was a short exchange filing. The 4% move came within minutes of the market opening. The traders who acted early were reading the same document anyone could read. They simply knew which lines mattered and what to compare them with.

That is a skill, and it can be learned. ICFM India has trained students in stock market analysis since 2012, from its Laxmi Nagar centre in East Delhi and its own centre in Gurugram. Its three programmes, SSS, CPT and Algo, are built for different stages, from first-time learners to traders who want to systematise their strategies. Students also prepare for NISM certification exams and receive BFSI and ICFM certificates on completion.

If today's numbers made you wonder what else you are missing in a results filing, that is the right question to start with. Talk to an ICFM counsellor and find the programme that fits your level →

How to read an NBFC quarterly business update: five checks

To read an NBFC business update, compare AUM growth with new-loan growth, check the rupee amount added in the quarter, track customer additions, look at how the growth is funded, and note any capital raise. Here is how each check works, using Bajaj Finance's Q2 FY27 numbers.

1. Compare AUM growth with loan-count growth. AUM grew 26.5% while new loans grew 11%. A gap that wide means the average loan is getting larger. That changes the risk profile, so it deserves a follow-up question when results come out.
2. Look at the rupee addition, not only the percentage. Percentages shrink as the base grows. Bajaj Finance added ₹37,800 crore this quarter against about ₹20,800 crore a year ago. On a bigger base, it is lending faster, not slower.
3. Track customer additions. The company added 4.42 million customers in Q2 FY27, against 4.13 million in Q2 FY26. A growing franchise gives a lender more people to cross-sell to later.
4. Check the funding mix. Deposits stood at about ₹69,750 crore, roughly the same as a year ago, while AUM grew by about ₹1.22 lakh crore. Deposits now fund around 12% of AUM, down from about 15% a year earlier. The rest comes from bank loans, bonds and equity, which is where interest-rate moves bite.
5. Note any capital action. A fundraise announced with the update tells you the company expects to keep growing. Work out the size against market value: here, about 2.9% potential dilution.

What a business update does not tell you

The update leaves out profit, net interest margin and asset quality. For context, Q1 FY27 net profit was ₹5,986 crore, up 27.4%, with gross NPA at 0.96%, net NPA at 0.39%, an annualised credit cost of 1.54% and return on equity of 20.4%. Whether those ratios held up in Q2 is the real test of the 26.5% growth, and only the full results will answer it.

What to watch next

The next test for Bajaj Finance is its full Q2 FY27 results, which will show whether profit and asset quality kept pace with 26.5% AUM growth. Full results usually follow the business update by a few weeks. Five things are worth tracking:

• Asset quality: gross NPA against 0.96% and credit cost against 1.54% in Q1 FY27. Faster growth with rising credit cost would weaken the story.
• Segment mix: which products drove the gap between 11% loan growth and 26.5% AUM growth.
• Fundraise pricing: the QIP price and the warrant price for Bajaj Finserv decide the actual dilution for existing shareholders.
• Funding cost: with deposits flat, the cost of bank loans and bonds will shape margins.
• Price levels: support near ₹936 and resistance near ₹1,020, as flagged by technical analysts after today's move.

The bottom line

Bajaj Finance's Q2 FY27 update is a strong growth print with one open question attached. AUM growth has picked up to 26.5% from 23.9% a quarter ago, the customer base keeps widening, and the promoter is putting fresh money in. But growth is coming from larger loans funded increasingly by the market, and the full results will decide whether that growth is also good-quality growth.

The next filing that moves this stock will land in a few weeks. Knowing how to read it before the headlines summarise it is the difference between reacting to the market and understanding it.

Ready to build that skill properly? Explore ICFM India's SSS, CPT and Algo programmes and book a session with a counsellor →

Frequently Asked Questions

1. What is Bajaj Finance's AUM in Q2 FY27?

Bajaj Finance's AUM was ₹5,84,750 crore, or about ₹5.85 lakh crore, as of 30 September 2026. That is 26.5% higher than ₹4,62,250 crore a year earlier. The company added ₹37,800 crore in the July to September quarter.

2. Why did Bajaj Finance's share price go up today?

The stock rose about 4% on 5 October 2026 for two reasons. Its Q2 FY27 update showed AUM growth speeding up to 26.5%, and the board approved a ₹17,500 crore capital raise. The stock also ended a four-session losing streak.

3. What does AUM mean for an NBFC like Bajaj Finance?

For a lender, AUM (assets under management) is the total value of loans it has outstanding, including any loans it manages for others. It is the clearest single measure of how big the loan book is and how fast it is growing.

4. How much is Bajaj Finance raising, and will it dilute shareholders?

The board approved up to ₹17,500 crore: a QIP of up to ₹11,700 crore and preferential warrants of up to ₹5,800 crore for Bajaj Finserv. At a market value of about ₹6.11 lakh crore, that is roughly 2.9% potential dilution. The final figure depends on the issue prices.

5. What is a QIP?

A qualified institutional placement (QIP) lets a listed company sell new shares directly to institutional investors such as mutual funds, insurers and foreign funds. It takes less time than a public issue, which is why lenders often use it to raise growth capital.

6. What are preferential warrants, and why issue them to Bajaj Finserv?

Preferential warrants give the holder the right to convert them into shares at a fixed price within a set period. Issuing up to ₹5,800 crore of warrants to Bajaj Finserv, the promoter, brings in fresh capital from the parent and helps it maintain its stake after the QIP.

7. Why did new loans grow only 11% when AUM grew 26.5%?

New loans booked counts fresh loans issued during the quarter, while AUM measures the value of the outstanding loan portfolio at quarter-end. The difference between 11% loan growth and 26.5% AUM growth does not automatically mean average loan sizes increased, because repayments, loan tenure and product mix can affect these figures. Bajaj Finance also noted that year-on-year loan-volume growth was not directly comparable because the festival season started earlier last year. Further disclosures are needed to identify which lending segments drove AUM growth.

8. Is a business update the same as quarterly results?

No. A business update is a short provisional filing with headline numbers such as AUM, new loans, customers and deposits. Quarterly results come later and add profit, net interest income, margins, NPAs and credit cost.

9. Should I buy Bajaj Finance shares after the Q2 update?

That depends on your goals, time horizon and risk appetite, and this article is not investment advice. Before deciding, it helps to wait for the full Q2 results and check asset quality, credit cost and the fundraise pricing. A SEBI-registered adviser can help with a personal decision.

10. How can I learn to analyse quarterly updates like this one?

Start by comparing each number with the previous quarter and the same quarter last year, as this article does. For structured learning, ICFM India has taught stock market analysis since 2012 through its SSS, CPT and Algo programmes in Delhi and Gurugram, with NISM exam preparation included.

Disclaimer: This article is for educational purposes only and is not investment advice or a recommendation to buy or sell any security. Figures are provisional company disclosures as reported on 5 October 2026. Stock prices change through the trading day. Please consult a SEBI-registered investment adviser before making investment decisions.