Conference Call Analysis

Executive Summary

===SUMMARY_START===

Bajaj Finance Limited – Q4 FY'26 Earnings Conference Call Summary

Detailed Analysis

Bajaj Finance delivered strong Q4 FY'26 results with record-breaking milestones and healthy momentum across core metrics. The company crossed ₹5 lakh crores (₹510,000 crores) in AUM for the first time, driven by secular growth across all business lines with particular strength in gold loans (115% YoY growth). Q4 AUM grew 22.4% to ₹510,000 crores, with PAT growth of 26.7% (core basis). The company added 3.93 million new customers in Q4, bringing the total franchise to 119.3 million customers, and booked 12.9 million loans during the quarter.

Key Profitability Metrics (Core Basis):

PBT grew 26% YoY; PAT grew 27% YoY
ROA stood at 4.6% (guidance 4.4%-4.6% for FY27)
ROE at 20% (guidance 19%-20% for FY27)
Cost of funds improved 4 bps to 7.41%
NIM remained steady; opex to NTI at 33.8% (after presentation changes, vs. 33.2% reported)

Asset Quality Shows Sequential Improvement:

Loan loss to average AUM at 1.65% (revised metric) vs. 1.97% in Q4 FY25
GNPA at 1.01%; NNPA at 41 bps
Provision coverage ratio improved to 60% from 54% YoY
Stage 2 & Stage 3 assets sequentially reduced by ₹430 crores
Vintage credit performance improving across 3-MOB, 6-MOB, 9-MOB metrics

Funding & Capital:

Deposit book at ₹68,533 crores (16% of consolidated borrowings)
Cost of funds improved 4 bps in Q4 to 7.41%
Full-time employees at 71,613 (added ~1,800 in Q4, 50% in gold loan and MFI)

FY'27 Guidance (Subject to Geopolitical Stability & Macro Stability):

AUM Growth: 20%-24% (aided by new business scaling)
Credit Cost: 145-160 bps on average AUM (revised metric; new guidance down from 165-175 bps previously)
ROA: 4.4%-4.6%
ROE: 19%-20%
NIM: Marginal moderation expected
Opex to NTI: 25-40 bps improvement from current levels
New Customer Addition: 15-17 million
GNPA/NNPA: Expected to remain range-bound within long-term guidance

Key Business Drivers:

Gold loan portfolio grew 115%, now 3.5% of AUM, expected to reach ~5% by FY'27
MSME growth deliberately restricted to 6% in FY'26 due to proactive risk actions; expected to return to double-digit growth by Q2-Q3 FY'27
Captive 2-wheeler & 3-wheeler book winding down to <₹1,500 crores by September '26 (currently <1% of AUM but 13% of GNPA and 5% of credit cost in Q4)
New car finance: 43-45% of volumes from existing customer base; across portfolio, 120-million-customer franchise has strong wallet share

AI Transformation (FinAI) — Major Strategic Initiative:

203 dedicated AI resources expanding to 363 by June'27
52 million voice-to-data conversions; 2.3 million text-to-data conversions
27 AI voice and text BOTs live; all 260+ million monthly customer communications to embed BOTs by June'26
AI call center agents at one-third cost vs. human agents; 30% of outbound voice agents already AI-powered
Plan to deploy 600+ autonomous agents in FY'27 across operations, DMS, HR, tech, and risk
AI-generated videos/banners enabling faster, cost-efficient marketing

Other Highlights:

Subsidiary Bajaj Housing Finance delivered 23% AUM growth; opex to NTI improved to 19.2% from 21.8%; GNPA/NNPA at 27/11 bps
Bajaj Financial Services (small subsidiary) delivered 77% AUM growth; 50% profit growth; 124,000 new customers in Q4; ROE 10.5%
Board recommended dividend of ₹6 per equity share (600% dividend)
Company noting consumption momentum remains strong; expected to cross 5 million loans in a single month for first time (prior peak 4.6 million in festival period)

Key Risks & Adjustments:

Management took ₹142 crores additional ECL provision in Q4 FY'26 for macroeconomic overlay
Presentation change: Recoveries against written-off loans now netted within loan loss provisions (vs. reported in other operating income); impact redefines opex to NTI and loan loss to average AUM metrics
MSME portfolio still being actively managed downward; further cuts taken in current month
Guidance assumes easing geopolitical tensions and macro stability; contingent on these assumptions

===SUMMARY_END===

===MARKDOWN_START===

BAJAJ FINANCE LIMITED – Q4 FY'26 EARNINGS ANALYSIS

Comprehensive NBFC Assessment: AUM Growth, Funding Mix, Asset Quality, and Profitability Spreads

1. BUSINESS GROWTH: AUM EXPANSION & DISBURSEMENT MOMENTUM

1.1 Assets Under Management (AUM) Growth

Q4 Performance: Bajaj Finance achieved a landmark milestone, crossing ₹5 lakh crores in AUM for the first time. The company reported: "During the quarter, the company crossed the milestone of INR 5 lakh crores AUM. It's a proud moment for us as a company to end the quarter at approximately INR 510,000 crores. In Q4, AUM grew by 22.4%" — MD Rajeev Jain.

In absolute terms, "In Q4, AUM grew by a record INR 25,500-odd crores" — MD Rajeev Jain, demonstrating exceptional sequential momentum.

Full-Year Performance: For FY'26 overall, "AUM grew 22%" — MD Rajeev Jain, indicating consistent growth trajectory across the fiscal year. This represents a significant achievement given macroeconomic headwinds including geopolitical tensions (Indo-Pakistan war, Iran-US conflict, tariff disputes).

FY'27 Guidance: Management is guiding for "a 20% to 24% AUM growth, aided by new businesses that we've launched in the last few years as they begin to scale" — MD Rajeev Jain. This guidance is contingent on favorable macro conditions, as explicitly stated: "the FY27 assessment is based on expectations of easing geopolitical tensions and macro stability" — MD Rajeev Jain.

Structural Tailwinds for Growth:

Gold Loan Momentum: The gold loan portfolio, a rapidly scaling segment, "grew by 115%. The business now contributes to 3.5% overall AUM. We foresee gold loan portfolio to probably cross 5-odd percent of total AUM by FY'27" — MD Rajeev Jain. This expansion is being driven by aggressive branch rollout in gold loan channels.
MSME Normalization: MSME growth was intentionally restricted to 6% in FY'26 due to proactive risk management: "MSME continue to see muted growth. It grew by 6% only on account of a set of proactive risk actions that we have been taking since Q2 FY'26. We expect that it should come back to double-digit growth or the company growth momentum between Q2 and Q3 of FY'27" — MD Rajeev Jain. With MSME headwinds abating, the company expects a recovery to double-digit growth by H2 FY'27, providing an upside lever to the 20-24% guidance.
Captive 2W/3W Wind-Down Impact: The company is deliberately reducing the captive 2-wheeler and 3-wheeler portfolio, which "now contributes to less than 1% of AUM, but even in Q4 accounted for 13% of GNPA and 5% of overall credit cost in Q4. This book will principally just wind down to less than INR 1,500-odd crores by September '26" — MD Rajeev Jain. The FY'26 AUM growth of 22.4% was negatively impacted by a "60% attrition" of this captive book, representing approximately ₹6,500 crores of wind-down. With this headwind largely behind the company in FY'27, organic growth should accelerate.

1.2 Disbursement Activity & Customer Addition

Q4 Loan Bookings & Customer Franchise: The company maintained strong disbursement momentum: "We booked 12.9 million loans and added 3.93 million new customers to the franchise" — MD Rajeev Jain. The total customer franchise reached "119.3 million customers" — MD Rajeev Jain as of end-FY'26.

On a full-year basis, "we booked 52.5 million loans and added 17.5 million new customers on a full year basis" — MD Rajeev Jain, indicating a very strong year of customer acquisition and loan originations.

Momentum Accelerating into FY'27: Management flagged strong early-year momentum: "The year so far has started off pretty well. It's likely for the first time, we've never done 5 million loans in a month" — MD Rajeev Jain. The company's prior peak was "4.6-odd million loans" achieved during the festival period. This suggests normalized (non-festival) demand now exceeds prior peak, despite geopolitical headwinds.

FY'27 Customer Addition Guidance: "In terms of customer franchise, we continue to be confident of adding 15 - 17 million new customers in FY27" — MD Rajeev Jain. This is broadly in line with the ~17.5 million added in FY'26, suggesting the company expects to maintain strong customer acquisition momentum.

1.3 Portfolio Composition & Diversification

Structural Diversification: The company operates "32 different lines of businesses" — MD Rajeev Jain and maintains a disciplined approach to portfolio mix. On portfolio stability, "if you plot Panel 63 of composition of our balance sheet over a period of even last 5 years, you will not see material movement at all actually. So you will see very little movement" — MD Rajeev Jain. This reflects a deliberate strategy to maintain portfolio balance across vehicle finance, personal loans, LAP, MSME, gold loans, and other segments.

Market Share & Competitive Positioning: The company is gaining share in its core markets. Management noted: "Our market share in most of the businesses continues to remain small, allowing us significant headroom for growth perspective" — CFO Sandeep Jain. Specifically, in key segments:

New Car Finance: "43%–45% of new car financing customers that we bring to the table every month…comes from ETV (existing customer)" — MD Rajeev Jain.
Personal Loans: "our market share is between 8.5% and 9%. At the India level, the number is 40%–45% of personal loans takers in India come from our 120 million franchise" — MD Rajeev Jain. This underscores the massive untapped wallet share within the existing customer base.
New Car & Used Car Finance: "35% of all new car finance and used car finance as per bureau data principally comes from this 120 million customers" — MD Rajeev Jain.

2. PROFITABILITY: NET INTEREST INCOME, NIM, SPREADS & PAT GROWTH

2.1 Profitability Metrics (Core Basis)

Q4 PAT & PBT Growth: On a core (adjusted) basis, management reported: "PBT growth of 26% on PBT, as you can see, and 27% for PAT" — MD Rajeev Jain. This represents strong profit growth exceeding the 22.4% AUM growth, indicating operating leverage is beginning to materialize.

Full-Year PAT Performance: For FY'26 overall, "PAT grew 24%" — MD Rajeev Jain. Again, this exceeds the 22% AUM growth, showing that the company is gaining profitability leverage as it scales.

2.2 Net Interest Margin (NIM) & Cost of Funds

NIM Trajectory: Despite strong cost-of-fund management, NIM remained stable in Q4. Management stated: "Cost of funds improved by 4 basis points in Q4 and came in at 7.41%. NIM remained steady" — MD Rajeev Jain.

The improvement in cost of funds (down 4 bps) without margin expansion suggests that the company chose to pass through some of the funding benefit to customers (either through lower loan rates or competitive pricing), rather than expanding spreads. This is a strategic choice to defend market share and customer acquisition, particularly in new growth segments like gold loans.

FY'27 NIM Outlook: Management is guiding for "marginal moderation" in NIM for FY'27: "NIM, we expect marginal moderation. It's a little bit contingent on how interest rates play out, caused by geopolitical tensions" — MD Rajeev Jain. This is prudent given:

Uncertainty around RBI policy rates in the context of geopolitical shocks.
Competitive pressures in high-growth segments (gold loans, new car finance).
Mix shift toward higher-growth, lower-margin segments (gold loans currently have wider spreads, but as volumes scale, pricing power may compress).

2.3 Return on Assets (ROA) & Return on Equity (ROE)

Q4 Profitability Ratios:

"ROA came in as of fourth quarter at 4.6%" — MD Rajeev Jain
"Return on equity came in at 20% in the current quarter" — MD Rajeev Jain

Full-Year Performance: The company delivered strong returns on a full-year basis, demonstrating consistency even amid business expansion and credit quality challenges in MSME.

FY'27 Guidance:

"We continue to guide for 4.4% to 4.6% [ROA]" — MD Rajeev Jain
"we continue to guide for 19% to 20% [ROE]" — MD Rajeev Jain

This guidance is anchored on management's confidence in orchestrating the four levers of ROA: growth, margin expansion, opex efficiency, and credit cost management. As CFO Sandeep Jain noted: "if we are supposed to deliver operating efficiency growth of 25% to 40% basis points… If we see improvement in loan loss to average AR as a metric in the next year, even with a marginal moderation that we are talking about from NIM perspective…there is a possibility that the P&L growth may be faster for the next year than the balance sheet growth" — CFO Sandeep Jain.

Historical Consistency: The company has maintained ROE in a 19-20% band for the past 6 years (post-COVID adjusted). As MD Rajeev Jain elaborated: "ROE guidance of 20 to 22 last 6 years, adjusted for COVID speaks for themselves and during this period, as you can see from a balance sheet standpoint, the balance sheet moved from INR115,000 crores to now INR510,000 crores" — MD Rajeev Jain. This demonstrates the company's ability to compound shareholder value while expanding scale by 4.4x.

2.4 Operating Leverage & Opex to NTI Trajectory

Opex Efficiency – Reporting Change: Management implemented a presentation change effective Q4 FY'26, reclassifying recovery income from "other operating income" to a net offset within "loan losses and provisions." While this has "no impact on PBT and PAT for the quarter, but changes the ratios," it redefines two key metrics: "opex to NTI is increasing from 33.2%, which is what it has come in to 33.8% as a result of this reporting change" — MD Rajeev Jain.

Underlying Opex Efficiency: On a like-for-like basis (adjusted for the presentation change), "Opex to NTI…came in at 33.2% an improvement of 10 basis points versus Q4 last year" — MD Rajeev Jain. However, there was a "marginal increase sequentially, primarily due to, I'm talking sequential on account of cost of new Labour Code and accelerated gold loan branch expansion" — MD Rajeev Jain.

FY'27 Opex Guidance: "On opex to NTI, we expect to see continued improvement of 25 to 40 basis points from current levels" — MD Rajeev Jain. This improvement is expected to be driven by:

AI automation reducing manual effort in origination, collections, and servicing.
Operating leverage as AUM grows 20-24% while opex growth remains contained.
De-leverage of gold loan branch expansion costs as the network matures and achieves scale.

AI's Role in Opex Compression: The company is deploying AI across sourcing, servicing, and operations to drive cost efficiency. Examples include:

"AI call center agent is one-third of the cost, straight" — MD Rajeev Jain. The company has already reduced outbound voice agents from 5,000 to a lower number, with 30% now AI-powered.
"walking into 3,000 stores or 2,700 across branch -- gold loan branches, customer service branches and in-stores, we will deploy close to 2,700 cameras, customer identification, reduce friction, which means faster turnaround, which means lower cost" — MD Rajeev Jain.

3. ASSET QUALITY: CREDIT COSTS, NPA TRAJECTORY & PROVISION COVERAGE

3.1 Gross & Net NPA Trends

Current Levels (Q4 FY'26):

"GNPA…came in at 1.01%" — MD Rajeev Jain
"NNPA came in at 41 basis points" — MD Rajeev Jain

This represents significant improvement from historical levels and reflects the company's proactive risk management, particularly in the MSME segment.

Sequential Improvement: "Stage 2 and Stage 3 assets, just to give you a texture on credit quality, have sequentially reduced by INR 430-odd crores" — MD Rajeev Jain. The company has achieved sequential improvement in Stage 2 and Stage 3 assets through tighter underwriting and accelerated collections.

Vintage Performance – Strong Confidence: Management highlighted strong forward indicators: "The vintage credit performance, which does not show up in loan loss to average AUM across 3 MOB, 6 MOB, 9 MOB continues to reflect significant improvement in credit quality and gives me reasonably high degree of optimism about credit cost outlook for FY27" — MD Rajeev Jain.

Moreover, "the 3 MOB, 6 MOB, 9 MOB lower than FY20" — MD Rajeev Jain, indicating that even with a much larger balance sheet (3.5x larger), the company is achieving better credit quality than in pre-COVID periods when it had half the asset base.

3.2 Credit Cost Guidance & Metrics

Reporting Change – Critical for Comparability: Effective Q4 FY'26, the company reclassified recoveries against written-off loans from "other operating income" to a net offset within "loan losses and provisions." This changes the credit cost metric reported to investors.

Q4 FY'26 Credit Cost (Revised Metric): "we just reported a 165 basis points or 1.65% credit cost to AUM, the revised metric" — MD Rajeev Jain. This is down significantly from "1.75% [in Q4]" on the old metric, reflecting the reclassification of recoveries.

Full-Year FY'26 Credit Cost: On the revised (net of recoveries) basis, annual credit cost was 1.65%. On the old (gross) basis, it was 1.75% (as noted: "Loan loss to average AUM as what investors have been used to came in at 175 basis points or 1.75% as against 1.97% in same period last year or Q4 FY25" — MD Rajeev Jain).

FY'27 Credit Cost Guidance: "On credit cost, this is a new credit cost metric, which, as I said we just reported a 165 basis points or 1.65% credit cost to AUM, the revised metric. We expect this to continue to trend down" — MD Rajeev Jain.

In response to a direct question from analyst Abhishek Murarka, MD Rajeev Jain confirmed: "And against that, you're guiding for 145 to 160 bps next year, full year. Is that the right understanding? Yes, that is perfect, right?" — MD Rajeev Jain.

Structural Drivers of Credit Cost Decline (FY'27 vs. FY'26):

MSME Normalization: "A reasonable amount of credit cost in the previous year came in from the MSME lines of business, which, as I said, we've already taken proactive reduction by close to 30%. That's why it grew by 6% in full year where the company grew by 22.5%" — MD Rajeev Jain. With MSME stabilized and growing again by Q2-Q3 FY'27, credit cost headwinds will diminish.
Captive 2W/3W Wind-Down: "The captive 2-wheeler and 3-wheeler business, which now contributes to less than 1% of AUM, but even in Q4 accounted for 13% of GNPA and 5% of overall credit cost in Q4. This book will principally just wind down to less than INR 1,500-odd crores by September '26, it will lead to further improvement in GNPA and should result in lower credit cost for FY27" — MD Rajeev Jain.
Portfolio Quality & Vintage Improvements: Vintage credit curves (3-MOB, 6-MOB, 9-MOB) are improving sequentially, providing confidence that the credit cost trajectory is sustainable.

Caveat on Guidance: When questioned about the assumption of easing geopolitical tensions, MD Rajeev Jain stated: "I would just say the more important point or a meta point in this is we are entering the year on credit costs with tailwinds. Headwind over headwind virtually would consume twice the fuel. Thankfully, we are entering the year with tailwinds. We have momentum. We can navigate even if the environment weaken" — MD Rajeev Jain. This suggests the company has built conservatism into its guidance but retains downside resilience.

3.3 Provision Coverage Ratio & Balance Sheet Resilience

PCR Improvement: "Provision coverage ratio was at 60% as against 54% same time last year" — MD Rajeev Jain. This 600 bps improvement demonstrates the company's proactive provisioning stance.

Strategic Bullet-Proofing Approach: CFO Sandeep Jain explained the philosophy: "As regard the ECL provisioning across Stage 1, Stage 2, Stage 3, this is a bottoms-up exercise that we do every year. We are moving from yearly exercise to quarterly exercise…The idea is to focus on resiliency of the balance sheet and the provision coverage ratio. I have reason to believe the numbers should remain in this corridor. We get opportunity, we will further up the NPA on provision coverage ratio to ensure that we are bullet proofing the balance sheet from any kind of potential impact" — CFO Sandeep Jain.

Management's Fiduciary Responsibility: MD Rajeev Jain underscored the strategic intent: "At INR510,000 crores, we are by far the largest. We are a very important player in terms of even overall credit in the country. It's our fiduciary responsibility to ensure we are highly resilient, can take any shocks" — MD Rajeev Jain.

The company is pursuing what MD Rajeev Jain termed a "cruise mode" strategy: "we will decide what we do rather than what happens…we will be a bulletproof business. While delivering as a firm a 20%, 22% ROE and a 22% to 24% balance sheet growth" — MD Rajeev Jain.

Importantly, "profit growth principally should be higher than balance sheet growth. And every incremental dollar of the differential in terms of growth goes to strengthening the balance sheet" — MD Rajeev Jain. This suggests that as the company guides for 22-24% AUM growth and expects PAT growth to exceed this (evidenced by opex compression and credit cost reduction), the excess profit growth will be retained to further de-risk the balance sheet.

4. LIABILITY & CAPITAL STRUCTURE: FUNDING MIX & COST OF FUNDS

4.1 Borrowing Mix & Deposit Growth

Deposit Mobilization: "Deposit book came in at INR 68,533 crores. It contributed to 16% of consolidated borrowings" — MD Rajeev Jain. This represents a meaningful funding diversification lever. Deposits provide stable, granular funding (retail deposits are less sensitive to wholesale rate shocks).

Deposit Growth Opportunity: At 16% of consolidated borrowings, deposits represent a significant opportunity for further growth. As the company scales, expanding the deposit base would:

Reduce dependence on wholesale borrowing (which is more volatile and rate-sensitive).
Improve ALM positioning and funding cost stability.
Create cross-selling opportunities (deposits are often bundled with other financial products).

Borrowing Cost Management: "Cost of funds improved by 4 basis points in Q4 and came in at 7.41%" — MD Rajeev Jain. This improvement reflects the company's ability to refinance maturing debt at lower rates, or negotiate better terms with existing lenders (banks, NBFCs, insurance companies).

4.2 Capital Adequacy & Equity Position

Dividend Policy & Shareholder Returns: "the Board of Directors have recommended a dividend to shareholders of INR 6 per equity share. So that's a 600% dividend. It's broadly in line with the dividend last year" — MD Rajeev Jain. This reflects the company's confidence in capital adequacy and profitability; the 600% dividend indicates the company is returning capital to shareholders while retaining sufficient capital for growth.

Capital Adequacy (Implied): While a specific CAR ratio is not disclosed in the transcript, the company's ability to:

Grow AUM at 22%+ annually.
Maintain ROE at 19-20%.
Pay consistent high dividends (600%). …all suggest capital adequacy is healthy. The company is not capital-constrained on growth.

4.3 ALM & Interest Rate Risk

Interest Rate Sensitivity: The company's guidance notes sensitivity to interest rates, particularly given geopolitical headwinds. "NIM, we expect marginal moderation. It's a little bit contingent on how interest rates play out, caused by geopolitical tensions" — MD Rajeev Jain.

This suggests:

If the RBI cuts rates (due to geopolitical risk, inflation moderation), NIMs could compress as the company's funding cost benefits are passed to customers.
If the RBI holds or hikes (to defend the rupee), NIMs could expand, but credit demand may soften.

The company's guidance of "marginal" NIM moderation suggests management expects rates to remain broadly stable or ease slightly.

5. GUIDANCE, OUTLOOK & TARGETS

5.1 FY'27 Guidance Summary Table

Metric	Target / Guidance	Verbatim Quote	Speaker
AUM Growth	20% to 24%	"we're confident of a 20% to 24% AUM growth, aided by new businesses that we've launched in the last few years as they begin to scale"	MD Rajeev Jain
Credit Cost (to avg AUM)	145 to 160 bps	"You're guiding for 145 to 160 bps next year, full year. Is that the right understanding? Yes, that is perfect, right?"	MD Rajeev Jain
ROA	4.4% to 4.6%	"We continue to guide for 4.4% to 4.6%"	MD Rajeev Jain
ROE	19% to 20%	"we continue to guide for 19% to 20%"	MD Rajeev Jain
NIM	Marginal moderation	"NIM, we expect marginal moderation. It's a little bit contingent on how interest rates play out"	MD Rajeev Jain
Opex to NTI	Improvement of 25-40 bps	"On opex to NTI, we expect to see continued improvement of 25 to 40 basis points from current levels"	MD Rajeev Jain
New Customer Addition	15 to 17 million	"In terms of customer franchise, we continue to be confident of adding 15 - 17 million new customers in FY27"	MD Rajeev Jain
GNPA & NNPA	Range-bound, within LT guidance	"GNPA and NNPA, we expect them to remain range bound and well within our long-term guidance"	MD Rajeev Jain
Gold Loan AUM Contribution	~5% of total AUM	"We foresee gold loan portfolio to probably cross 5-odd percent of total AUM by FY'27"	MD Rajeev Jain
MSME Growth	Double-digit (from Q2-Q3 FY'27)	"We expect that it should come back to double-digit growth or the company growth momentum between Q2 and Q3 of FY'27"	MD Rajeev Jain
Captive 2W/3W Book	<₹1,500 crores by Sept '26	"This book will principally just wind down to less than INR 1,500-odd crores by September '26"	MD Rajeev Jain

5.2 Key Management Commentary & Strategic Themes

Geopolitical & Macro Contingencies: A critical caveat underlies all FY'27 guidance: "the FY27 assessment is based on expectations of easing geopolitical tensions and macro stability. That -- I'm sure, it's understood, but I thought it's important I make the point yet again that it's contingent upon easing geopolitical tensions and macro stability" — MD Rajeev Jain.

The company explicitly noted that "No [guidance does not account for adverse impact]. If anything comes up second half or something, then this may go up depending on how things play out" — MD Rajeev Jain (in response to analyst question). However, the company entered FY'27 with tailwinds: "we are entering the year on credit costs with tailwinds" — MD Rajeev Jain.

Transformation & AI-Driven Operating Model: "We expect FY27 to be probably the busiest year from a FinAI transformation in terms of outcomes, inputs and outputs as a firm" — MD Rajeev Jain. The company is undergoing a fundamental business model transformation, not merely deploying use cases:

*"There's a principal difference between deploying use cases and transformation. Fundamentally, transformation is about reshaping the business model and in general, covers all aspects of business.

Bajaj Finance Ltd — May2026 Conference Call Summary