New Delhi, Aug. 27 -- The first thing Bajaj Finance's Q1 FY27 numbers tell you is how good last year was. Net profit rose 14% to Rs 4,376 crore for the April-to-June quarter, an outcome that in most industries would be celebrated. In the context of the 28% profit growth Bajaj posted in Q1 FY26, and with credit costs hitting 2.09% annualised - the highest in six quarters - 14% is a number that demands an explanation.

Bajaj lent more, and a slightly larger fraction of that lending is not paying back on schedule.

Set against that, Shriram Finance posted net profit of Rs 2,139 crore, up 18% year-on-year. Muthoot Finance reported Rs 1,531 crore, up 26%. Both are secured lenders - Shriram in used commercial vehicles, Muthoot in gold - and bot...