Even though Bajaj Finance reported double-digit growth in the consolidated profit for the July-September quarter, the company's share price fell by around 7% in early trading on Tuesday, November 11.
The share price of Bajaj Finance: Even though the company reported double-digit rise in the consolidated profit for the July-September quarter, shares of blue-chip non-banking finance company (NBFC) Bajaj Finance fell over 7% in early trading on Tuesday, November 11.However, the blue-chip stock was negatively impacted by near-term growth concerns brought on by a reduction in expectations and indications of stress in the MSME market.
Results for Bajaj Finance's second quarter
After market hours on Monday, Bajaj Finance announced a 23% increase in consolidated net profit to ₹4,948 crore for the second quarter that concluded on September 30. In comparison to ₹8,838 crore in the second quarter of FY25, net interest income increased by 22% to ₹10,785 crore.
By the end of September 2025, gross non-performing assets had increased from 1.06% of gross loans to 1.24%, indicating a worsening of the company's asset quality. In a similar vein, at the conclusion of the second quarter of the prior fiscal year, net NPAs, or bad loans, also rose to 0.6% from 0.46%.
After market hours on Monday, Bajaj Finance announced a 23% increase in consolidated net profit to ₹4,948 crore for the second quarter that concluded on September 30. In comparison to ₹8,838 crore in the second quarter of FY25, net interest income increased by 22% to ₹10,785 crore.
By the end of September 2025, gross non-performing assets had increased from 1.06% of gross loans to 1.24%, indicating a worsening of the company's asset quality. In a similar vein, at the conclusion of the second quarter of the prior fiscal year, net NPAs, or bad loans, also rose to 0.6% from 0.46%.
As the NBFC struggles with growing stress in its MSME portfolio, Bajaj Finance reduced its lending growth target for the current fiscal year to 22–23% from its previous estimate of 24–25%.
According to a Mint report, the corporation has taken a more "balanced and prudent stance" on asset growth this year due to the slowdown in MSME and two-wheeler lending.
Additionally, management advised flat NIMs going forward since customers will benefit from cost savings. Guidelines for fee income growth of approximately 13% to 15% and credit costs of approximately 1.85% to 1.95% were upheld in FY26E.
According to a Mint report, the corporation has taken a more "balanced and prudent stance" on asset growth this year due to the slowdown in MSME and two-wheeler lending.
Additionally, management advised flat NIMs going forward since customers will benefit from cost savings. Guidelines for fee income growth of approximately 13% to 15% and credit costs of approximately 1.85% to 1.95% were upheld in FY26E.
Should you purchase or sell shares of Bajaj Finance?
JM Financial lowered its earnings per share (EPS) expectations for FY26/27E by about 2%–3% in light of the management's reduced growth guidance. With expectations rolled forward to FY28E, Bajaj Finance stock is valued at about 4.7x/24x Sep-27E BVPS/EPS, resulting in a revised target price of ₹1,140 (formerly ₹1060). It also reduced the stock from BUY to 'ADD'.
Bajaj Finance recorded a mixed quarter in Q2 FY26, according to stockbroker Motilal Oswal Financial Services (MOSL).
JM Financial lowered its earnings per share (EPS) expectations for FY26/27E by about 2%–3% in light of the management's reduced growth guidance. With expectations rolled forward to FY28E, Bajaj Finance stock is valued at about 4.7x/24x Sep-27E BVPS/EPS, resulting in a revised target price of ₹1,140 (formerly ₹1060). It also reduced the stock from BUY to 'ADD'.
Bajaj Finance recorded a mixed quarter in Q2 FY26, according to stockbroker Motilal Oswal Financial Services (MOSL).
0 Comments