Dear Shareholder,

2025-26 (or FY2026) has been yet another successful year for your Company. However, before getting into corporate details, let me share with you some other news.

At the time of writing this letter to you, elevated geopolitical tensions in the Middle East continue to pose a measure of uncertainty for the global economy. Although diplomatic efforts are underway, conditions are likely to remain fluid until greater clarity emerges. Any prolonged disruption to traffic through the Strait of Hormuz could result in higher crude oil and gas prices, increased energy costs, and greater strain on energy-intensive industries, while also adding to wider inflationary pressures globally.

This should not directly affect your Company's performance. Nevertheless, by raising inflation in India — which has been hitherto remarkably subdued — it can affect consumer sentiments, disposable income and, hence, the amount chosen to be allocated for housing spends.

I am not saying that this necessarily will happen. What I am saying instead is that the remarkably good macroeconomic outcome that we have enjoyed in India over the last three consecutive years may come under cloud. I pray not.

Thankfully, your Company has been enjoying the sunshine. Let me first share the financial results and then take you though some key developments that ought to further increase your Company's reach, competitiveness and profitability. Here are the consolidated financial highlights.

• Customer franchise: Grew by 17% to 119.33 million.
• Number of new loans booked: 52.45 million, crossed a milestone of 50 million numbers.
• Assets under management (AUM): Crossed a milestone of `5 trillion and grew by 22% to `509,975 crore.
• Net interest income (NII): Increased by 21% to `44,110 crore.
• Net total income (NTI): Grew by 21% to `53,324 crore.
• Profit before tax (PBT): Increased by 17% to `25,817 crore.
• Profit after tax (PAT): Increased by 15% to `19,332 crore.
• Adjusted for the additional ECL provision taken towards long-term resilience and the exceptional item, PBT grew by 23% to `27,630 crore and PAT grew by 24% to `20,689 crore.
• Capital adequacy ratio (standalone) as on 31 March 2026: 21.55%, Tier-I adequacy was 20.67% — both well above the stipulated norms laid down by the Reserve Bank of India.

During the year, your Company sold 166.6 million equity shares of Bajaj Housing Finance Limited (BHFL) through a bulk transaction in the secondary market, as part of its effort to meet the SEBI mandated minimum public shareholding requirements. Consequent to this sale, BFL's shareholding in BHFL reduced by 2% to 86.70%.

These excellent results have been achieved by your Company's dedicated and result-driven employees led by its Vice Chairman and Managing Director Rajeev Jain and his team. Equally, there have been profound changes in processes that have empowered our people to robustly deliver such results. I want to touch upon three of these. First, the committed use of artificial intelligence (AI) across virtually all departments of your Company. Second, a massive investment in creating stronger risk processes. And third, our continued emphasis on customer fairness.

In FY2025, your Company embarked on a ambitious transformative journey to become a FinAI (financial AI) enterprise. This transformation has been fuelled by an advanced AI-driven technology architecture that integrates intelligence across all processes and, in turn, enhances customer engagement, boosts revenue, reduces operational costs, optimises credit risk, improves productivity and strengthens financial governance.

FinAI implementation is progressing well across each line of businesses and should start to meaningfully reflect in costs and productivity benefits. We are building an AI-based financial services institution where intelligence is embedded in every decision through four strategic dimensions viz. Enterprise AI, Consumer AI, Agentic AI and Data AI.

Without going into further detail, let me share with you that your Company has a dedicated AI team of over 200 members structured across domains — voice, text, vision, risk, operations and services — each with clear domain and AI ownership. The technological architecture has been re-designed around these domains, so that AI is deployed across every customer touchpoint and operational workflow at scale.

Let me give you a couple of examples to appreciate what AI means to your Company. Through conversational AI bots (voice and text), your Company achieved loan disbursals of over `5,500 crore in FY2026. And AI converted over 52 million voice logs into text which, in turn, enabling approximately `700 crore loan disbursals in FY2026. The AI era has well nigh begun for your Company and will rapidly intensify in the years to come.

I would request everyone to read your Company's Management Discussion and Analysis for more updates on FinAI.

The second aspect I want to touch upon is your Company's single-minded emphasis of constantly enhancing its 'Risk-First Approach' by creating ever-more robust risk identification and mitigation processes — to enable timely identification of the likelihood of a risk event and facilitate appropriate mitigation.

Your Board provides clear strategic direction for risk management. The Risk Management Committee of the Board serves as the apex policy-making body, supported by senior management committees responsible for policy implementation and effective oversight of the risk framework across the organisation.

Your Company remains among the lowest risk companies in India, with GNPA of 1.01% and NNPA of 0.41%. It continues to strengthen its risk policy and framework to enhance resilience and enduring stability, in line with its growing size and scale.

Let me now dwell upon on your Company's emphasis on customer fairness. It is based on an inviolable principle that fairness always keeps customers closely allied to the Company. We have leveraged our digital and AI capabilities to create even more communicative and interactive customer service portals. These span each and every aspect of a customer's journey with your Company. We are committed to a fair, transparent and open relationship with every customer.

I am proud to share with you the excellent performance of your Company's listed subsidiary, Bajaj Housing Finance Limited ('BHFL'), a non-deposit taking housing finance company registered with the National Housing Bank to carry out housing finance.

BHFL's performance highlights for FY2026 are given below:

• Assets under management (AUM): Increased by 23% to `140,706 crore.
• Profit before tax (PBT): Increased by 20% to `3,320 crore.
• Profit after tax (PAT): Grew by 18% to `2,560 crore.
• Capital adequacy ratio on 31 March 2026 was 22.46%, well in excess of the regulatory norm.

Another subsidiary of your Company, Bajaj Financial Securities Limited ('Bajaj Broking') is registered with the SEBI and functions as a stockbroker-cum-depository participant.

Bajaj Broking's performance highlights for FY2026 are given below:

• Customer franchise: Grew by 41% to over 1.38 million.
• Assets under finance: Increased by 77% to `7,984 crore.
• Profit before tax (PBT): Grew by 49% to `273 crore.
• Profit after tax (PAT): Rose by 46% to `203 crore.

Your Company firmly believes that its people are its greatest assets. As an equal-opportunity employer, it continues to introduce people centric initiatives to attract, develop and retain talent. Its balanced talent acquisition strategy focuses on capability building, workforce expansion, early talent development and improving hiring outcomes. Your Company's culture and people practices have consistently attracted diverse, high-performing talent and strengthened the leadership pipeline required for future growth.

Rooted in a long legacy of social stewardship, the Bajaj Group has embarked on its most ambitious journey with Bajaj Beyond, a landmark corporate social responsibility commitment with an investment of `5,000 crore to touch the lives of two crore Indians over five years. We view CSR as a nation and society building imperative; and are focusing on two pillars: Youth and Children — i.e. the youth of today and that of tomorrow.

Let me end with some rejoicing. 2026 represents 100 years of the Bajaj Group. Not too many corporate or industrial groups of major size can claim to have such a long history. We are justly proud of it. And we pray that this is just the beginning of a double-century!

As always, many thanks for your steadfast support. We treasure this very much. And we hope that despite the grey global clouds, FY2027 will also be an excellent year for your Company.

With my best regards,

Yours sincerely,

Sanjiv Bajaj Chairman