Chairman’s Letter

Dear Shareholder,

Global macroeconomic conditions remain broadly resilient but uneven, amid elevated policy and geopolitical uncertainty. However, the external environment remains fragile, with intermittent flare-ups in trade policy and geopolitics continuing to shape risk sentiment and capital flows.

Geopolitical risks have intensified, particularly due to escalating tensions in the Middle East, including Iran-related developments, which pose upside risks to energy prices and could reignite global inflationary pressures. The ceasefire between the US/Israel and Iran is on at the time of writing, but the situation remains fragile. Continued breakdown in negotiations could significantly disrupt global energy markets, with adverse implications for trade flows and economic activity.

Simultaneously, US-China trade relations remain uncertain, shaped by selective tariff adjustments, export controls in strategic sectors such as semiconductors and rare earths and evolving bilateral arrangements. While recent truces have helped avert a broader escalation, the risk of renewed trade tensions remains material. These could weigh on global trade volumes, disrupt supply chains and tighten financial conditions, particularly for open economies and commodity-importing countries.

In such an uncertain scenario, I am happy to state that all the enterprises in your Company’s portfolio have performed well. However, before touching upon the results, let me repeat something I wrote in my last year’s letter to you. It bears repetition.

While it may look to some of you that Bajaj Finserv (BFS) is like a holding company, it is much more than that. The fundamental rationale of BFS is to continuously integrate the various companies under its wing — both directly and increasingly digitally — and, thus, enhance customer inclusion and experience in ways such that the total is larger than the sum of its parts.

Your Company’s vision is to be a diversified yet integrated financial services entity with a pan-India presence and to offer lifecycle financial solutions for the needs of its various customers.

These needs are provided by companies through omnichannel products and solutions, and by digital-first platforms. In your Company, these are:

a) Products and solutions, which are provided by:

1. Bajaj Finance Ltd. (BFL), a large, listed, well-recognised and significantly profitable consumer finance and lending business; and its listed subsidiary, Bajaj Housing Finance Ltd. (BHFL).
2. Bajaj General Insurance Ltd.; and Bajaj Life Insurance Ltd. In FY2026, the Bajaj group bought over the stakes held by Allianz SE of Germany.
3. Bajaj Finserv Asset Management Ltd. (BFS AMC), an unlisted wholly-owned subsidiary of BFS. It is in the mutual fund business.

b) Digital-first platforms, which are offered through:

1. Bajaj Finserv Direct Ltd. (BFSD), an unlisted subsidiary in which BFS holds 80.10% stake with the remaining 19.90% held by BFL. BFSD operates a financial products marketplace and offers technology services;
2. Bajaj Finserv Health Ltd., a health-tech venture, in which BFS holds 100% stake; and
3. Bajaj Financial Securities Ltd. (BFSL), another wholly-owned subsidiary of BFL which provides digital stock-broking and demat services.

What is the role of your Company across all these ventures? It is to regularly monitor and engage with its companies with some key objectives in mind:

• To be the preferred partner for all financial lifecycle needs of customers.
• To create and enhance value across the customer lifecycle.
• To build maintainable businesses that deliver long-term sustainable profit, meaningful market share and effectively use capital.
• To encourage innovation, agility and ownership.

Let me now dwell upon the financial results of each of the enterprises.

In the last quarter of FY2026, BFS along with its promoter group entities, namely Bajaj Holdings & Investment Ltd. and Jamnalal Sons Pvt. Ltd., successfully completed acquisition (including buyback) of the 26% equity stake held by Allianz SE in the two insurance subsidiaries for a transaction value of ₹ 24,180 crore — all of which was internally financed. These have been renamed as Bajaj General Insurance Ltd. and Bajaj Life Insurance Ltd. The joint venture agreements between BFS and Allianz SE have been terminated.

This transaction, the largest ever in the Indian insurance sector, marks one of the most significant acquisitions of a global joint venture partner by an Indian business group. Both insurance companies are now 100% Bajaj — ‘Made in India, Made for India, Made by India’ — signifying the Bajaj group’s renewed commitment to shaping the future of insurance in India.

Let me now move on to the emerging businesses.

Bajaj Finserv Direct Ltd. (BFSD)

BFSD is a diversified, open architecture based marketplace for financial services which attracts large number of new-to-Finserv consumers. It creates awareness and discovery of the Bajaj brand and cross-sells products by leveraging technology and analytics. Starting in July 2018, it operates under two divisions. These are: (i) Bajaj Markets with two customer facing digital assets; and (ii) Bajaj Technology Services, which focuses on building digital-first solutions for BFSI businesses.

Bajaj Finserv Direct recorded a revenue of ₹ 374 crore and a loss of ₹ 172 crore during FY2026. BFS and BFL have so far infused capital of ₹ 808 crore in this venture. However, no further capital was infused during FY2026.

Bajaj Finserv Health Ltd. (Bajaj Finserv Health)

Bajaj Finserv Health is a health-tech venture that aims to transform the healthcare sector in India. With a range of healthcare solutions and services, the mission is to provide platforms for customers to manage their healthcare needs 360°, covering wellness, outpatient (OPD) and inpatient (IPD) services.

Through an efficient digital platform, Bajaj Finserv Health seeks to (a) connect providers of healthcare such as hospitals, doctors, labs, etc. with patients, and (b) provide healthcare and claims management services to payers of healthcare expenditure such as insurance companies, employers and government.

Bajaj Finserv Health operates primarily through an AI-based consumer facing app which allows customers to manage their plans, access healthcare providers, book appointments and store their health records for future reference. It has built a network of over 125,000 doctors, more than 5,000 diagnostic points and over 15,000 hospitals where outpatient (OP) transactions can be done on cashless basis. Over 20 million health transactions were processed and fulfilled in FY2026.

During FY2026, Bajaj Finserv Health recorded a consolidated income of ₹ 1,121 crore and a loss of ₹ 161 crore. So far, BFS has infused capital of ₹ 1,340 crore in this venture, including ₹ 214 crore in FY2026.

Bajaj Finserv Asset Management Ltd. (BFS AMC)

Bajaj Finserv received its final registration from the Securities and Exchange Board of India (SEBI) on 1 March 2023 to commence its mutual fund operations under the name Bajaj Finserv Mutual Fund; with Bajaj Finserv Asset Management Ltd. (a 100% subsidiary of BFS) to act as the asset management company.

BFS AMC uses AI to integrate behavioural finance, information-driven insights and quantitative techniques to deliver superior market performance. Serving over 1 million investors and empowering over 50,000 distributors, it has already achieved an average AUM of ₹ 30,627 crore for Q4 FY2026 and closing AUM of ₹ 26,819 crore as on 31 March 2026. BFS AMC is poised for success in shaping India’s investment landscape. Your Company has infused ₹ 775 crore in this venture.

Let me focus a bit on digitisation and the use of AI, which are driving rapid growth through each of these enterprises.

In December 2025, we embarked on a transformative journey to become a FinAI (financial AI) enterprise, fuelled by an advanced AI-driven technology architecture that integrates intelligence across all processes. This, in turn, enhances customer engagement, boosts revenue, reduces operational costs, optimises credit risk, improves productivity and strengthens financial governance. In this journey, each enterprise remains committed to responsible AI principles based upon fairness, transparency, privacy and security.

FinAI implementation is underway across each line of businesses and should start to reflect in costs and productivity benefits in the next 12-18 months. We are building an AI-based financial services institution where intelligence is embedded in every decision through four strategic dimensions. These are:

• Enterprise AI: Voice AI, Text AI, Vision AI, Content AI, Tech AI, and AI for business intelligence together form an end-to-end AI portfolio. Together, these enable human-like voice and text conversations, data extraction from images and documents, on-demand content creation, accelerated software development and testing and intelligent, conversational enterprise analytics powered by autonomous agents.
• Consumer AI, or the use of AI to power everyday products and experiences that make the consumers’ life simpler, more personalised and transformational.
• Agentic AI, where autonomous, intelligent agents go beyond predefined workflows and rule-based automation. These agents can reason, plan, adapt and collaborate across systems and processes. It enables a shift from process-centric automation to goal-oriented autonomy.
• Data AI: Data AI, Data Tagging and Custom Model AI to enable scalable data intelligence by transforming unstructured data into structured form, generating behavioural insights from digital and voice signals, and building custom models for credit risk, personalisation and propensity scoring.

We have a dedicated AI team structured across various domains, so that AI is deployed across every customer touchpoint and operational workflow.

Here are a couple of examples for you to appreciate what AI means to your Company. Through conversational AI bots (voice and text), BFL achieved over ₹ 5,520 crore in loan disbursals in FY2026. Also in BFL, AI converted over 52 million voice logs into text which, in turn, enabled disbursals of ₹ 697 crore. Using GenAI, Bajaj Finserv Health has built capabilities for healthcare ecosystem like fraud and abuse identification, automated claims management, document digitisation and more. These services are not only used in daily claim processing by us but also offered as service to clients. The AI era has begun for each of your enterprises, and will rapidly intensify in the future.

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 the beginning of a double-century!

As always, thank you for your support to BFS. And my thanks to every employee of the group to deliver the results that you see today.