Bajaj Finance shares crash 7% today after Q2 results as growth guidance cut; brokerages broadly positive

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26 Aug, 2025 12:21

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Shares of Bajaj Finance fell as much as 7 percent on Tuesday after the lender cut its FY26 growth guidance despite its Q2 FY26 results broadly meeting Street estimates. Bajaj Finance stock ended at Rs 1,009.1 on NSE, down 7 percent from the previous close, having slipped even below Rs 1,000 intraday. The group's associate firm Bajaj Finserv stock also fell 5.9 percent to Rs 1,992.9 at close.

NBFC major Bajaj Finance's July-September quarter performance showed expansion in key metrics, but asset quality worsening. Analysts expect near-term volatility given the trimmed growth guidance, though most brokerages remain optimistic on the stock’s longer-term prospects.

Earlier, on Monday, Bajaj Finance reported a 22 percent year-on-year rise in consolidated net profit to Rs 4,875 crore for the July-September quarter. Net interest income grew 22 percent to Rs 10,785 crore, while assets under management (AUM) rose 24 percent year-on-year to Rs 4.62 lakh crore. The customer base increased to 110.6 million, with 4.1 million new additions during the quarter.

Gross NPAs edged up to 1.24 percent from 1.03 percent in the previous quarter, while net NPAs stood at 0.6 percent. The company slightly lowered its FY26 AUM growth guidance to 22-23 percent, citing softer trends in SME and housing segments.

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Bajaj Finance stock call: Should you buy or sell? Check target prices

• Morgan Stanley has an Overweight rating on Bajaj Finance shares with a target price of Rs 1,195. It noted that the trimmed FY26 AUM growth guidance and stable NIMs could disappoint investors. However, the brokerage firm cited likely declines in credit costs and continued cost efficiencies as positives, viewing any near-term stock weakness as an opportunity to add.
• HSBC issued a Buy call and raised its target to Rs 1,200, saying Q2 EPS was in line with estimates and that stable RoA and RoE were supported by better cost-to-income ratios. It expects AUM growth pickup, cost control, and normalised credit costs to drive a 28 percent EPS CAGR over FY26-28, and raised both its EPS forecasts and valuation multiple to 5.4 times FY27 BVPS.
• Jefferies shared a Buy rating with a Rs 1,270 target, saying profit rose 23 percent year-on-year, slightly ahead of estimates. AUM grew 24 percent and festive-season performance was strong, though growth guidance was cut by 100 basis points to 22-23 percent. Credit costs were elevated but are expected to ease, with profit CAGR projected at 23 percent over FY25-28.
• CLSA has an Outperform call with a Rs 1,200 target, saying results were strong across parameters with 24 percent AUM growth led by secured loans. It noted stable NIMs, slightly better fee income, and a marginal rise in credit costs by 3 bps to 2 percent. The lending firm kept credit cost guidance at 1.85-1.95 percent, while lowering loan growth guidance.
• Bernstein was cautious with an Underperform rating and Rs 640 target, citing continued strong headline growth but pressure from higher NPAs across segments and scale-related strains. It said the company has tightened costs, including rationalising its points of presence, to preserve profitability.

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