CLSA has maintained its outperform rating on Bajaj Finance Ltd (BAF) with a target price of ₹1,200 per share after the company delivered a steady Q2FY26 performance, broadly in line with expectations across most parameters.
Assets under management (AUM) grew 24% year-on-year, with secured loans expanding faster than SME and two-wheeler portfolios. Net interest margins remained stable, while fee and other income came in slightly ahead of estimates. Credit costs rose modestly by 3 basis points sequentially to 2%, driven by higher slippages, though overall asset quality trends remained contained.
CLSA said the net 30-day past-due formation improved to its best level in several quarters, highlighting resilience in collections. Management retained its full-year credit cost guidance at 1.85–1.95% but trimmed its loan growth outlook by 200 basis points to 22–23%, citing a prudent stance amid competitive intensity.
The brokerage expects Bajaj Finance’s long-term growth to remain healthy but cautioned that moderation in unsecured lending and higher funding costs could weigh on near-term NIMs.
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