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Bajaj Finance Ltd. Key Financial Ratios

NSE:BAJFINANCE | FINANCIAL INSTITUTION

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Profitability Margins

2-year trend showing gross, operating, and net profit margins

FY 2024 - FY 2025

Bajaj Finance Ltd.'s net profit margin of 24.1% in FY2025 reflects excellent profitability, with operating margin at 9.4%.

Understanding Profitability Margins

In FY 2025, Bajaj Finance Ltd. posted an operating margin of 9.4%, a net margin of 24.1%. Operating Margin = EBIT / Revenue; Net Margin = Net Income / Revenue. Typical healthy ranges: Operating 10-20%, Net 5-10%+. Consistent or improving margins indicate strong competitive positioning.

Company Performance

2-year trend showing revenue, gross profit, and net profit

FY 2024 - FY 2025

Bajaj Finance Ltd.'s revenue grew 26.8% to 697.25B and net profit grew 16.1% to 167.79B YoY in FY2025, indicating strong business momentum.

Understanding Company Performance

In FY 2025, Bajaj Finance Ltd.'s revenue grew by 26.8% year-over-year. Revenue is total income from operations. Gross Profit is revenue minus cost of goods. Net Profit is the bottom line after all expenses. Consistent growth across all three signals a healthy, expanding business.

Return on Equity (ROE)

2-year trend showing shareholder returns

FY 2024 - FY 2025

Bajaj Finance Ltd.'s ROE of 17.0% in FY2025 indicates good shareholder returns.

Understanding Return on Equity (ROE)

In FY 2025, Bajaj Finance Ltd. reported an ROE of 17.0%. ROE = (Net Income / Shareholders' Equity) x 100. Measures how efficiently the company turns equity into profit. Above 15% is generally strong; above 25% is excellent. Very high ROE may signal high leverage — check alongside debt levels.

Net NPA Ratio

2-year trend showing asset quality

FY 2024 - FY 2025

Bajaj Finance Ltd.'s net NPA ratio of 0.4% in FY2025 indicates strong asset quality.

Understanding Net NPA Ratio

In FY 2025, Bajaj Finance Ltd. reported a net NPA ratio of 0.44%. Net NPA Ratio measures bad loans (after provisions) as a percentage of total loans. Below 2% is healthy for NBFCs; above 3-4% signals stress. A declining trend indicates improving asset quality.

Net Income vs Free Cash Flow

2-year trend comparing profitability with cash generation

FY 2024 - FY 2025

Understanding Net Income vs Free Cash Flow

In FY 2025, Bajaj Finance Ltd.'s free cash flow trailed net income. Free Cash Flow = Operating Cash Flow - Capital Expenditure. For NBFCs, FCF is typically negative because cash outflows for loan disbursements are part of core operations, not traditional capex. A negative FCF here does not signal financial weakness — it usually reflects a growing loan book.

Net Income vs Operating Cash Flow

2-year trend comparing profitability with cash from operations

FY 2024 - FY 2025

Understanding Net Income vs Operating Cash Flow

In FY 2025, Bajaj Finance Ltd.'s operating cash flow trailed net income. Operating Cash Flow is cash generated from core operations. For NBFCs, OCF is often negative because loan disbursements (a core activity) consume cash. Negative OCF alongside rising net income typically reflects aggressive loan book growth, not operational weakness.

Leverage Ratios

Measure a company's financial leverage, liquidity, and ability to meet financial obligations.

Current Ratio Analysis

2-year trend showing short-term liquidity position

FY 2024 - FY 2025

Understanding Current Ratio

In FY 2025, Bajaj Finance Ltd. reported a current ratio of 1.26. Current Ratio = Current Assets / Current Liabilities. For NBFCs, a low current ratio is normal because large short-term borrowings are part of the business model. Liquidity is managed through Asset-Liability Management (ALM), not by maintaining high current ratios.

Interest Coverage Ratio Analysis

2-year trend showing ability to service debt

FY 2024 - FY 2025

Understanding Interest Coverage Ratio

In FY 2025, Bajaj Finance Ltd. reported an interest coverage ratio of 0.3x. Interest Coverage = EBIT / Interest Expense. For NBFCs, interest expense is a core operating cost — their business model relies on the spread between interest earned and interest paid. A low ICR here does not indicate debt stress.

Debt-to-Equity Ratio Analysis

2-year trend showing financial leverage and capital structure

FY 2024 - FY 2025

Bajaj Finance Ltd.'s debt-to-equity ratio of 3.65x in FY2025 reflects well-managed leverage for a lending business.

Understanding Debt-to-Equity Ratio

In FY 2025, Bajaj Finance Ltd. reported a debt-to-equity ratio of 3.65. Debt-to-Equity = Total Debt / Total Equity. NBFCs naturally operate with high leverage (D/E of 3-7x is typical) because borrowing to lend is their core business. A high D/E here does not indicate financial distress — compare with NBFC peers for context.

Total Debt Analysis

2-year trend showing total debt with year-over-year changes

FY 2024 - FY 2025

Bajaj Finance Ltd.'s borrowings grew 57.3% YoY in FY2025, indicating aggressive borrowing growth that warrants close monitoring.

Understanding Total Debt

In FY 2025, Bajaj Finance Ltd.'s total debt increased by 57.3% year-over-year. Total Debt includes short-term debt, long-term loans, debentures, and capital leases. For NBFCs, rising debt typically reflects loan book growth, not financial distress. Compare debt growth with loan book and revenue growth for context.

Shares Outstanding

Year-over-year change in diluted shares outstanding

Bajaj Finance Ltd.'s diluted shares increased 1.3% YoY in FY2025 — share dilution.

Over 2 years (FY2024–FY2025), diluted shares increased 1.3% from 6.12B to 6.20B, indicating cumulative dilution.

Understanding Shares Outstanding

In FY 2025, Bajaj Finance Ltd.'s diluted shares increased by 1.3% year-over-year. Diluted Shares accounts for stock options, warrants, and convertibles. Positive YoY change means dilution (red); negative means buybacks (green). Consistent dilution above 5% annually is a red flag.

Data from audited consolidated filings. For educational purposes only — not investment advice. Last update: FY 2025