Bajaj Finserv on Friday reported a 30% year-on-year increase in its net profit to Rs 2,789 crore for the June quarter. The consolidated total income rose by 13% to Rs 35,451 crore.
Bajaj Finance reported a 20% year-on-year rise in profit, amounting to Rs 4,699 crore. The profit after tax for the general insurance business increased by 15% to Rs 660 crore, while the life insurance business profit increased by 39%, reaching Rs 145 crore.
Allianz buyout
In an update to shareholders regarding Allianz’s 26% stake sale in the two insurance joint ventures to BFS and other Bajaj Group Companies, Sanjiv Bajaj, chairman and managing director of Bajaj Finserv, said that they had received approvals for the stake purchase from the Competition Commission of India and the Insurance Regulatory and Development Authority of India (IRDAI). One company has received approval for a name change, while they are awaiting approval for the other insurance subsidiaries. Approval from the Registrar of Companies will also be required for the name change.
The first tranche, comprising a minimum of 6.1%, is to be completed within six months following IRDAI approval. After payment of the first tranche, the JV will be terminated. Bajaj indicated that it would take an additional quarter for the transaction to finalise, noting that the process has been smooth and quick. The Bajaj Group has committed significant investments to buy out Allianz, driven by its confidence in the future of both insurance companies and growth opportunities in the Indian market, Bajaj said. The 26% stake has to be completed by October 16, 2025.
The gross written premium for the general insurance business increased by 9%, totalling Rs 5,202 crore. The company reported growth in all core business lines, including motor, retail health, commercial (fire, marine, engineering, and liability), and marine insurance. The life insurance segment recorded a 39% growth in the value of new business, attributed to product restructuring, a favourable product mix, and cost rationalisation. Bajaj’s market share in the general insurance business stands at 7%, while the life insurance market share is 6.5%.
However, Bajaj Finserv’s emerging businesses, which include Bajaj Finserv Health, Bajaj Finserv Direct, Bajaj Finserv Asset Management, and Bajaj Finserv Ventures, reported losses of Rs 142 crore during the quarter. As of June 30, 2025, Bajaj Finserv Asset Management recorded assets under management (AUM) of Rs 25,011 crore. Bajaj mentioned that these businesses are expected to turn profitable within the next two to five years.
Poonawalla Fincorp profit falls 78%
Poonawalla Fincorp has reported a 78.5% decline in net profit to Rs 63 crore for the June quarter. This decrease is attributed to higher expenses and losses from the derecognition and impairment of financial instruments. However, the company’s Assets Under Management increased by 53%, reaching Rs 41,273 crore, while Net Interest Income rose by 13.6%, amounting to Rs 768 crore.
The company board has approved a plan to raise Rs 1,500 crore through a preferential issue to the company’s promoter, Rising Sun Holdings, at Rs 425.51 per share. Following this fundraising, the holdings of the Adar Poonawalla-controlled Rising Sun will increase from 62.46% to 63.99%.