Are Bajaj Finance Ltd latest results good or bad?

Bajaj Finance Ltd's latest financial results for the quarter ended December 2025 reflect a complex operational landscape characterized by strong revenue growth but significant profitability challenges. The company reported net sales of ₹21,213.89 crores, which represents a year-on-year growth of 17.63%. This growth in topline performance is noteworthy, especially when compared to the previous year's growth rate of 27.33%. However, the consolidated net profit for the same period was ₹3,977.85 crores, which indicates a decline of 6.33% year-on-year. This decline in profitability is concerning, especially given that the previous year's profit growth was 16.70%. The profit margin, specifically the PAT margin, contracted sharply to 19.47% from 24.90% in the prior quarter, marking one of the weakest margin performances in recent history. The results also highlight rising operational costs, with interest expenses increasing by 14.93% year-on-year, significantly outpacing revenue growth. This trend raises questions about the company's ability to manage its cost structure effectively in the current economic environment characterized by elevated interest rates. Overall, while Bajaj Finance has demonstrated robust revenue growth, the substantial decline in profitability and margin compression warrant careful consideration. The company has experienced an adjustment in its evaluation, reflecting the challenges it faces in maintaining profitability amidst rising costs and competitive pressures. Investors and stakeholders may need to closely monitor future performance to assess the sustainability of the company's growth trajectory.