Bajaj Finance has reported a robust performance for the fourth quarter ended March 2025, showcasing a net profit increase of 19% year-on-year to ₹4,546 crore. The company's stock closed at ₹9,105, reflecting a slight increase of 0.13% on April 29, 2025. Standalone figures also indicated a significant rise, with net profit climbing 16% to ₹3,940 crore compared to ₹3,401 crore in the same period last year. Revenue on a standalone basis surged by 23.8%, reaching ₹15,808 crore from ₹12,764 crore.
Moreover, the Net Interest Income (NII) demonstrated healthy growth, rising by 22% to ₹9,807 crore, up from ₹8,013 crore in the prior year quarter. On the asset quality front, the standalone figures showed Gross Non-Performing Assets (NPA) at 1.18%, an increase from 1.05% year-on-year, while Net NPA stood at 0.56%, up from 0.46% in the same period last year. Despite this slight uptick in reported NPAs, the company's asset quality remains largely stable in Q4, supported by strong collection efficiencies across its product portfolio.
In a significant move for shareholders, the Board has recommended a stock split in the proportion of 1:2. This means that for every existing share, shareholders will receive two shares, effectively splitting each share with a face value of ₹2 into one share of ₹1 each. Additionally, the company announced a separate bonus issue in the ratio of 4:1. Under this plan, investors will receive an additional four shares for every share they hold as of the record date. With over 70 lakh shareholders, this bonus issue is expected to expand the shareholder base further.
Alongside these structural changes, the Board also approved dividends for the financial year. Shareholders will receive a special dividend of ₹12 per share and a final dividend of ₹44 per share. Ahead of the earnings announcement, Bajaj Finance shares were trading marginally lower or flat. The company's share price history shows robust performance over the long term, with a 5-year gain of 306.33%. The strong quarterly performance expectation was driven by robust loan growth across consumer, Small and Medium Enterprises (SME), and rural segments.
In a broader context, the company's diversified lending portfolio and focus on customer base expansion and cross-selling are noted as factors supporting sustained growth. Overall, the Q4 results indicate continued operational strength, while the announced stock split, bonus issue, and dividends signal management's confidence and commitment to returning value to shareholders.
Meanwhile, Bharat Petroleum Corporation Limited (BPCL) reported its own financial results on the same day, announcing an 8% year-on-year decline in its March quarter consolidated net profit at ₹4,392 crore, down from ₹4,790 crore in the year-ago period. The state-run company's Q4FY25 revenue fell by 4% to ₹126,916 crore compared to ₹132,087 crore posted in the corresponding quarter of the previous financial year.
However, on a sequential basis, BPCL's profit after tax (PAT) jumped 15% versus ₹3,805 crore in Q3FY25, while revenue from operations saw a marginal dip of 0.5% compared to ₹127,551 crore reported in the October-December quarter of FY25. BPCL's board of directors also recommended a final dividend of ₹5 per equity share. This dividend will be paid within 30 days from the date of its declaration at the Annual General Meeting (AGM), with the record date for the final dividend to be intimated separately.
The financial results released on April 29, 2025, highlight the contrasting performance of Bajaj Finance and BPCL, reflecting the diverse dynamics within the financial and energy sectors. Bajaj Finance's strong growth trajectory contrasts with BPCL's decline in profit, illustrating the varied challenges and opportunities facing different industries.
As the financial year draws to a close, market analysts will be keenly observing the performance of over 40 companies expected to announce earnings on this day. The mixed results from these companies will provide further insights into the overall health of the economy as it navigates through post-pandemic recovery.
In the broader market landscape, the performance of Bajaj Finance and BPCL reflects the ongoing economic trends, with sectors like finance experiencing growth amid challenges in the energy sector. Investors will be looking for signals of sustained recovery and growth as they assess their positions in the market.
In conclusion, while Bajaj Finance's impressive results and shareholder rewards signal a strong operational outlook, BPCL's decline raises questions about the energy sector's resilience. The juxtaposition of these results encapsulates the diverse economic landscape as companies adapt to changing market conditions.
