Summary
Bajaj Finance shares dropped sharply by 6.5% to ₹1,015 in early Tuesday trading after the leading non-banking finance company (NBFC) lowered its AUM growth forecast for FY26. This decline came despite the company reporting strong Q2 FY26 earnings, which largely met Street expectations. Meanwhile, its group firm Bajaj Finserv also slipped 6.5% to ₹1,981 ahead of its quarterly results announcement later in the day.
Even with the sharp correction, top global brokerages remain bullish on Bajaj Finance shares, highlighting its strong fundamentals, efficient cost management, and consistent profitability as signs of sustained long-term growth. Many analysts see the recent dip as a buying opportunity, rather than a cause for concern, as Bajaj Finance continues to demonstrate financial resilience and operational strength in India’s fast-growing lending market.
Bajaj Finance Q2 FY26 Results: Everything Looked Good
In the July-September quarter, Bajaj Finance said their combined net profit rose 22% year-over-year to ₹4,875 crore. Their net interest income (NII) also went up 22% to ₹10,785 crore, and their assets under management (AUM) jumped 24% year-over-year to ₹4.62 lakh crore.
They now have 110.6 million customers, gaining 4.1 million new ones this quarter. This shows that Bajaj Finance’s plans to grow online and in stores are working well.
But, the quality of their assets declined a bit. Gross NPAs rose to 1.24% (from 1.03% in Q1), and net NPAs edged up to 0.6%. The company changed its AUM growth forecast for fiscal year 2026 to 22–23%, down from what they said before, because of weaker trends in SME and housing loans.
Why the Stock Fell Even Though Numbers Were Good
Even with consistent growth in many areas, investors didn’t like the lower AUM outlook and the slight increase in NPAs. This caused the stock price to drop by 6%. Some experts think this is just a short-term change, not a major worry.
The company’s decision to lower the forecast was seen as smart. It shows they want growth that is steady and profitable instead of trying to expand too quickly in uncertain times.
Investment Firm Opinions: Mostly Positive After Forecast Cut
Many investment firms shared their thoughts on Bajaj Finance, mostly keeping positive or optimistic ratings. Here’s what some big firms said:
Morgan Stanley: Kept an Overweight rating with a target price of ₹1,195. They said that stable net interest margins (NIMs) and lower credit costs are good for the long term, calling the current drop an opportunity to buy.
HSBC: Raised its target to ₹1,200 with a Buy rating. They mentioned stable return on assets (RoA) and return on equity (RoE), helped by lower costs.
Jefferies: Repeated a Buy recommendation with a ₹1,270 target, mentioning 23% profit growth and good momentum from the holiday season.
CLSA: Gave an Outperform rating with a ₹1,200 target, praising steady AUM growth and good performance of secured loans, even though loan growth expectations were reduced slightly.
Bernstein: Was more careful, with an Underperform rating and ₹640 target. They pointed to NPA issues and efforts to cut costs, but acknowledged strong core profits.
Market View: Short-Term Bumps, Good Long-Term Potential
The mood around Bajaj Finance stock might be unstable for a bit because of the reduced forecast. But most experts think the company is still in a good position for the long term. With cost savings, careful lending, and a varied portfolio, the company can handle short-term difficulties and keep growing profits at a good rate.
Also, with expected credit costs returning to normal and better operating efficiency, investment firms see potential for gains from where the stock is now. Many think the recent drop is a good time for long-term investors to get in.
In Conclusion: Buy When It Dips, Long-Term Growth Still Likely
Even though Bajaj Finance shares fell temporarily by 6%, the company’s good results in Q2 FY26, consistent profits, and strong balance sheet have convinced most experts to remain positive. With expected earnings per share (EPS) growth, stable margins, and strong execution, Bajaj Finance remains one of the most reliable NBFCs in India.
Basically, Bajaj Finance is still a good long-term investment — and this drop could be a great chance for investors to buy.
Note: All information and images used in this content are sourced from Google. They are used here for informational and illustrative purposes only.
FAQs on Bajaj Finance Shares Crash and Q2 FY26 Results
Q1. What caused Bajaj Finance shares to fall 6% today?
Bajaj Finance shares fell around 6.5% in early trade after the company trimmed its FY26 AUM growth guidance to 22–23%, even though Q2 results met market expectations. Investors reacted negatively to the cautious outlook despite strong profit and revenue growth.
Q2. How did Bajaj Finance shares perform in Q2 FY26 results?
Bajaj Finance shares were under pressure even though the company posted a 22% year-on-year rise in consolidated net profit to ₹4,875 crore and a 22% increase in net interest income to ₹10,785 crore. Its AUM grew 24% to ₹4.62 lakh crore, supported by robust secured loan growth.
Q3. What is the current asset quality position of Bajaj Finance shares?
Bajaj Finance shares reflected investor caution as the company’s gross NPAs rose slightly to 1.24% from 1.03% in the previous quarter, while net NPAs stood at 0.6%. The NBFC still maintains strong asset quality, though SME and housing loan segments saw mild stress.
Q4. What was the reason behind lowering AUM growth guidance for Bajaj Finance shares?
Bajaj Finance shares dropped after management reduced FY26 AUM growth guidance due to softer trends in SME and housing segments. The company emphasized sustainable growth with profitability and credit quality at the forefront.
Q5. How did Bajaj Finserv impact Bajaj Finance shares in the market today?
Bajaj Finance shares and group company Bajaj Finserv both declined by about 6.5%. Bajaj Finserv fell to ₹1,981 ahead of its Q2 earnings release, adding short-term pressure on Bajaj Finance’s overall group sentiment.
Q6. What are brokerages saying about Bajaj Finance shares after Q2 results?
Brokerages remain optimistic about Bajaj Finance shares, citing strong long-term fundamentals. Major firms such as Morgan Stanley, HSBC, Jefferies, and CLSA maintained Buy or Outperform ratings despite the guidance cut.
Q7. What is Morgan Stanley’s target price for Bajaj Finance shares?
Bajaj Finance shares received an Overweight rating from Morgan Stanley with a target price of ₹1,195. The brokerage believes the dip offers a buying opportunity, supported by declining credit costs and strong operational efficiency.
Q8. What is HSBC’s outlook on Bajaj Finance shares?
HSBC retained a Buy rating on Bajaj Finance shares and raised its target to ₹1,200. It expects a 28% EPS CAGR over FY26–28, driven by stable RoA, cost efficiency, and normalized credit costs, reinforcing a positive long-term view.
Q9. How does Jefferies view the future of Bajaj Finance shares?
Jefferies remains bullish on Bajaj Finance shares, assigning a target price of ₹1,270. It highlighted a 23% rise in profit, 24% AUM growth, and strong festive demand as key positives, expecting credit costs to stabilize in the coming quarters.
Q10. What did CLSA mention about Bajaj Finance shares post-Q2 results?
CLSA reiterated an Outperform rating on Bajaj Finance shares with a target of ₹1,200, appreciating steady AUM growth, better fee income, and stable NIMs. It noted a minor uptick in credit costs but maintained confidence in the company’s fundamentals.
Q11. Why did Bernstein issue an Underperform rating on Bajaj Finance shares?
Bernstein was cautious on Bajaj Finance shares, giving an Underperform rating and ₹640 target. It cited pressures from rising NPAs and operational strain but acknowledged the firm’s proactive cost management efforts.
Q12. Should investors buy Bajaj Finance shares after this correction?
Most analysts see the correction in Bajaj Finance shares as a buying opportunity for long-term investors. With solid fundamentals, strong cost control, and stable margins, the company remains a quality pick in India’s NBFC space.
Q13. What is the long-term growth outlook for Bajaj Finance shares?
Experts forecast that Bajaj Finance shares could deliver 23–28% EPS growth between FY25 and FY28. Factors like controlled credit costs, AUM expansion, and digital transformation are expected to sustain its growth momentum.
Q14. What is the current market sentiment toward Bajaj Finance shares?
The sentiment for Bajaj Finance shares remains bullish among leading brokerages. Despite short-term volatility, analysts believe the stock’s long-term growth story and strong business model make it a top investment choice in the NBFC sector.
Q15. What should investors monitor for Bajaj Finance shares going forward?
Investors should track AUM growth trends, credit cost normalization, NPA levels, and SME/housing loan performance. These factors will play a crucial role in shaping the valuation and profitability outlook for Bajaj Finance shares.
