NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Bajaj Finance – Accelerated provisioning dents earnings
Bajaj Finance Ltd.’s Q3 FY26 PAT declined by 6% YoY due to accelerated provisioning of Rs 1,400 crore (0.3% of gross advances), given the implementation of minimum LGD floor across businesses. Adjusted for this one-off, operating performance remained steady with AUM growth of 22% YoY, steady NIMs (~9%), marginal normalization in credit costs (1.92%), and robust profitability (RoE of 19.7%).
Management has indicated improvement in credit costs during FY27 to sub-1.8%, along with pick-up in the MSME segment.
While Bajaj Finance’s credit costs normalisation has been protracted compared to historical trends, overall profitability is likely to remain best-in-class along with healthy loan growth, driving premium valuation vs. peers.
HDFC Securities revises its FY26/FY27E/FY28E earnings estimates to adjust for accelerated provisioning and marginally lower loan growth and maintain Buy with a revised RI-based target price of Rs 1,070 (implying 4.5x Sep-27 adjusted book-value per share; 23x Sep-27 earnings per share.
Click on the attachment to read the full report:
Hdfc Securitiese Bajaj Finance Aditya Birla Capital And More Q3 Results.pdf
Also Read: Buy, Sell Or Hold: Varun Beverages, ITC, Canara Bank, NMDC And Jio Financial Services — Ask Profit
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Comprehensive Budget 2026 coverage,
LIVE TV analysis,
Stock Market and
Industry reactions,
Income Tax changes and
Latest News on NDTV Profit.
