Shares of Bajaj Finance Ltd. fell over 7% on Tuesday, November 11, after the company’s September quarter results (Q2 FY26) triggered investor concerns over its revised growth guidance and asset quality trends. The stock declined to Rs 1,007, down 7.19%, from the previous close of Rs 1,085, making it one of the top losers on the NSE.
The non-banking financial giant revised its Assets Under Management (AUM) growth guidance for the full financial year to 22–23%, down from the earlier estimate of 24–25%. The downward revision was primarily driven by slower growth in the mortgage and SME segments, with the company expecting SME loan growth to stay between 10–12%. Management also projected that MSME growth will bottom out in Q1 FY27.
Additionally, Bajaj Finance warned that credit costs will remain at the higher end of the 1.85–1.95% range for the rest of the fiscal year, before improving from FY27. The lender has already cut 25% of its unsecured MSME volumes to manage risk amid rising delinquencies.
Despite operational caution, Bajaj Finance posted a 22% year-on-year increase in Net Interest Income (NII) to Rs 10,785 crore, while net profit rose 23.3% YoY to Rs 4,948 crore. Asset quality showed some strain — Gross NPA rose to 1.24% from 1.03% in the June quarter, and Net NPA increased to 0.6% from 0.5%. Net Interest Margins (NIMs), however, remained stable year-on-year.
Brokerages offered mixed views on the stock:
- CLSA maintained an “Outperform” rating with a target price of Rs 1,200.
- Morgan Stanley rated it “Overweight” with a target of Rs 1,195, seeing any weakness as a buying opportunity despite the guidance cut.
- HSBC reiterated its “Buy” call with a Rs 1,200 target, projecting EPS growth at a 28% CAGR for FY26–28 driven by cost efficiencies and normalization of credit costs.
- Jefferies maintained its “Buy” rating with a target of Rs 1,270, expecting 23% CAGR in net profit over FY25–28.
- Bernstein, however, remained cautious with an “Underperform” rating and a target of Rs 640, citing asset quality deterioration across segments.
Out of 37 analysts covering Bajaj Finance, 20 recommend ‘Buy’, 12 suggest ‘Hold’, and five have ‘Sell’ calls. The company’s market capitalization currently stands at Rs 6.26 lakh crore, with a P/E ratio of 35.93.
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