Shares of Bajaj Finance jumped over 6% on Friday, 31 July, after the NBFC posted strong results for the quarter ended June 2026 (Q1FY27).
The stock rose as much as 6.2% to its day’s high of ₹1,122 per share on BSE.
Bajaj Finance Q1 Results 2026
Bajaj Finance reported healthy growth in earnings and lending income for the April-June quarter (Q1 FY27), supported by continued expansion in its loan book and an improvement in asset quality.
The NBFC posted a 27.4% YoY increase in consolidated net profit to ₹5,986 crore in the June quarter, compared with ₹4,699 crore in the corresponding period last year. Net interest income (NII) also grew 23% YoY to ₹12,571 crore, up from ₹10,288 crore a year ago.
The company’s asset quality improved during the quarter, with the gross non-performing asset (GNPA) ratio declining to 0.96% from 1.03% in the March quarter. The net NPA (NNPA) ratio also eased to 0.39%, compared with 0.50% in the year-ago quarter.
Bajaj Finance continued to expand its lending franchise, with assets under management (AUM) rising 24% YoY to ₹5.46 lakh crore from ₹4.41 lakh crore. The growth was primarily driven by the company’s gold loan portfolio and commercial vehicle (CV) and tractor financing businesses.
Should you buy?
Brokerage house Motilal Oswal has upgraded the stock to buy with a target price of ₹1,300, indicating an upside potential of 23%.
As per the brokerage, BAF reported an all-round strong quarter, with healthy performance across growth, asset quality, credit costs and margins. Borrowing costs remained stable despite a volatile macroeconomic environment. Growth remained broad-based across segments, while asset quality continued to improve, supported by strong vintage performance and lower credit costs.
“BAF trades at 3.9x FY28E P/BV and ~20x P/E. We model a PAT CAGR of ~30% over FY26-FY28E and RoA/RoE of 4.2%/21% in FY28E. We believe the company is entering a phase of sustainable earnings compounding, driven by broad-based growth, resilient profitability and improving asset quality. We upgrade our rating on BAF to BUY with a TP of INR1,300 (premised on 4.8x FY28E BVPS),”it added.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
