Bajaj Finance shares fell 3% on Wednesday, 21 October, despite the non-banking financial company reporting a 29% year-on-year increase in consolidated net profit for the September quarter of FY27, supported by higher interest income.
On 19 October, Bajaj Finance reported consolidated net profit of ₹6,367 crore for the second quarter, compared with ₹4,948 crore in the corresponding quarter last year.
Total consolidated income rose to ₹24,576 crore from ₹19,992 crore a year earlier, according to the company’s regulatory filing. Net interest income (NII) increased 24% year-on-year to ₹13,335 crore from ₹10,785 crore in Q2 FY26.
However, the company’s total expenditure also climbed to ₹16,042 crore from ₹13,388 crore in the year-ago period.
Bajaj Finance Q2 results: Asset quality improves
Bajaj Finance reported an improvement in asset quality during the quarter. Gross non-performing assets (GNPA) declined to 1.06% of gross loans as of September 30, 2026, compared with 1.24% a year earlier. Net non-performing assets (NNPA) eased to 0.42% from 0.60% over the same period.
The company’s assets under management (AUM) grew 26% year-on-year to ₹5,84,624 crore as of 30 September 2026, from ₹4,62,261 crore a year earlier.
Meanwhile, its capital adequacy ratio, including Tier-II capital, stood at 20.33% at the end of September, down from 21.23% at the end of the corresponding quarter of the previous financial year.
Bajaj Finance fundraising plans
Earlier, on 1 October, Bajaj Finance’s board approved plans to raise up to ₹11,700 crore through a qualified institutions placement (QIP). It also approved a preferential issue of warrants worth up to ₹5,800 crore to Bajaj Finserv, the company’s promoter and holding company.
Bajaj Finance has two subsidiaries, Bajaj Housing Finance and Bajaj Financial Securities, and two associate companies, Snapwork Technologies and Pennant Technologies.
Bajaj Finance – Should you buy, sell or hold?
Axis Securities retained its Buy rating on Bajaj Finance, calling it its top pick within the non-banking financial company (NBFC) sector. The brokerage cited the company’s strong retail franchise, diversified growth drivers, robust risk management and capital position, along with its ability to sustain return on assets (RoA) above 4.5% and return on equity (RoE) of 20–22% over the medium term.
Axis Securities set a revised target price of ₹1,255 per share, down from ₹1,305 earlier. It also lowered its valuation multiple to 4.4 times September 2028 estimated adjusted book value (ABV), from 5 times its FY28 estimated ABV.
Motilal Oswal Financial Services reiterated its Buy rating on Bajaj Finance with a target price of ₹1,250, valuing the stock at four times its estimated September 2028 book value per share (BVPS).
The brokerage flagged potential risks, including asset quality deterioration due to weak monsoons, El Niño conditions and elevated crude oil prices. It also cautioned that the Reserve Bank of India’s proposed restrictions on revolving credit could weigh on assets under management (AUM) growth and net interest margins (NIMs) if implemented in their current form. Proposed Insurance Regulatory and Development Authority of India (IRDAI) regulations on insurance commissions could also affect fee income.
Nuvama Institutional Equities maintained its Buy rating on Bajaj Finance with a target price of ₹1,175, valuing the stock at 4.1 times its estimated September 2028 ABV and 21 times estimated earnings per share (EPS).
Nuvama said the company’s diversified portfolio and proactive risk management should help it sustain healthy growth and manage asset quality despite emerging macroeconomic headwinds. The brokerage expects Bajaj Finance to deliver RoA of 4.1%, return on assets under management (RoAUM) of 4.3–4.5% and RoE of 21–22% over FY27–FY29.
Bajaj Finance share price today
Bajaj Finance share price today opened at ₹968 apiece on the BSE, the stock touched an intraday high of ₹969 apiece, and an intraday low of ₹925.25 per share.
Ruchit Jain, Head of Equity Technical Research, Wealth Management, at Motilal Oswal Financial Services, said Bajaj Finance shares have been forming a lower-high, lower-low pattern on the daily charts, indicating a weak technical structure. The stock is trading below its key short-term and medium-term moving averages, with no meaningful positive momentum emerging after the announcement of its Q2 results.
Jain said the immediate resistance lies in the ₹980– ₹1,000 range, which the stock needs to cross to signal a potential improvement in its trend.
Osho Krishan, Chief Manager – Technical and Derivative Research at Angel One, said Bajaj Finance remains in a corrective phase, trading below its 200-day simple moving average (SMA). The breakdown below the ₹950 level following a consolidation phase indicates underlying weakness. The next key support is placed around ₹915, near a bearish gap. A decisive break below this level could intensify selling pressure and drag the stock towards ₹900. On the upside, the stock needs to sustain a move above ₹970–975 to regain strength. Until then, a cautious approach is advisable.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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