Bajaj Finance Ltd. share price target

BFL delivered a strong performance, with double-digit AUM growth and robust *over or under performance to benchmark index profitability, supported by traction across key lending segments and diversified product portfolio. The management highlighted improving portfolio quality, stable margin and continued operating leverage, with increasing contribution from segments such as gold loans, vehicle finance and MSME loans to the overall mix. BFL is also strengthening its position through an accelerated AI-led transformation in underwriting, collection, customer engagement and operating processes, which...

We value Bajaj Finance Limited at INR 1,120, based on 4.5x FY28E ABV of INR 249, modestly below prior to reflect normalisation at scale.

We maintain our BUY recommendation on the stock.

BAF reported a good quarter in terms of growth, profitability, and credit cost, with PAT of Rs54.6bn (attributable to shareholders), above our estimates and broadly in line with street estimates.

delivered consistent robust growth with consolidated AUM touching ~5.09 lakh crore. Harnessing its large franchise base digitally offers a huge opportunity. Q4FY26 performance: Bajaj Finance reported steady Q4FY26 performance, with consolidated AUM rising 22% YoY to 5,09,975 crore, and customer franchise of 11.93 crore. NIMs remained broadly stable, supported by a 4bps sequential decline in cost of funds to 7.41%. Consolidated PAT stood at 5,553 crore (5,660 crore pre-one-offs), reflecting ~27% YoY growth, aided by strong operating leverage despite an additional ECL overlay of 142 crore. Asset quality remained...

AUM growth guidance of 22-24% in FY27, aided by the growth in gold loans, CV/tractor finance, normalisation of MSME growth

Bajaj Finance’s (BAF) 4QFY26 PAT grew 22% YoY to ~INR55.5b (in line). Reported PAT for FY26 grew ~17% YoY to INR193b. 4Q NII grew 20% YoY to ~INR117.8b (in line). Non-interest income stood at ~INR24.3b (up 15% YoY).

NIM compression expected as bond yields harden Credit cost outlook positive for FY27E at 1.45-1.60% AUM grew 22% YoY to INR 5,099.8bn led by strong growth in mortgages, sales finance and B2C loans. Company is witnessing sustained traction in new verticals (Cars, Gold, MFI) and new customer addition (~15-17mn in FY27); we build an AUM growth of 23%/22% in FY27/FY28E. Expect FY27 NIM to moderate as hardening of bond yields is likely to impact CoF. Asset quality ratios saw improvement across segments while credit cost improved in Q4 (1.65%) supported by a healthy trend in vintage credit...

Bajaj Finance (BAF) is navigating the current credit cycle with a clear focus on balance sheet resilience, consciously sacrificing near-term growth to protect long-term asset quality.

We maintain our BUY recommendation on the stock.

PAT below expectations (down 6% YoY, 18% QoQ) due to accelerated ECL provisioning; foresees higher credit cost

Q3FY26 performance: Bajaj Finance reported a resilient Q3FY26 performance, with consolidated AUM rising 22% YoY to 4,84,477 crore, driven by healthy loan bookings of 1.39 crore and addition of 47.6 lakh customers, taking customer franchise to 11.54 crore. Net interest income grew 21% YoY to 11,317 crore, while NIM remained stable, supported by a 7-bps sequential decline in cost of funds to 7.45%. Consolidated PAT (including accelerated ECL and one-time labour code charge) fell 6% YoY to 4,066 crore, translating into RoA of 4.3% and RoE of 18.5%...

BFL reported strong total income growth and profitability during the quarter, due to *over or under performance to benchmark index higher interest income and operational efficiency measures. The reduction in unsecured MSME loan volumes is a prudent move, which is expected to improve the company's loan loss metrics in the second half of the year and beyond. The recent GST rate revision has boosted customer sentiment, leading to increased consumption and a strong seasonal outlook. Additionally, the captive 2 and 3 wheeler business, which accounts for a significant portion of loan losses, is being...

Customer-centric transformation driving market share expansion: Bajaj Finance is accelerating its transition from product-centric to customercentric operations, pivoting to deepen customer engagement and increase wallet share. With an existing >10 crore customer base and a target of 2022 crore by FY30, the company plans to deepen engagement and grow product per customer from 6.05 to 6.5-7.5 in FY30. Expanded digital reach, AI-driven personalization and multi-channel distribution is expected to drive a 10x scale up in disbursements (800 crore to 8000 crore/month) with AUM projected to sustain >20% growth and PAT growing at 22-24% CAGR over H1FY26-30, supporting credit market share growth from 2.32%...

Bajaj Finance’s (BFL) FY26-30 strategic roadmap not only focuses on sustaining high growth but also emphasises on improving profitability.

In Q2 FY26, Bajaj Finance continued to demonstrate robust business growth.
The company booked 12.2 million new loans during the quarter, up 26% from 9.7 million in Q2 FY25. The customer franchise expanded to 110.6 million as of 30 September 2025, compared to 92.1 million a year earlier, marking a 20% increase, with an addition of 4.13 million customers during the quarter.

delivered consistent robust growth with consolidated AUM touching ~4.62 lakh crore. Harnessing its large franchise base digitally offers a huge opportunity. Q2FY26 performance: Bajaj Finance reported a stable Q2FY26 performance with strong AUM (consolidated) growth of 24% YoY to 4,62,261 crore, driven by 1.21 crore new loans (up 26% YoY) and a customer addition of 41.3 lakh, taking the franchise to 11.1 crore. Net Interest Income rose 22% YoY to 10,785 crore, supported by 27-bps QoQ decline in cost of funds to 7.52%. Consolidated PAT grew 22% YoY to 4,948 crore, translating to healthy RoA of 4.5% and RoE of 19.1%....

Bajaj Finance (Bajaj)’s Q2FY26 financial performance was impacted by elevated credit cost in MSME and captive 2W/3W loan segments. 2W’s share of captive stands at 1.5% of total AUM; however, it contributes 9% to total credit during Q2FY26.

Bajaj Finance (BAF)’s PAT grew 23% YoY to ~INR49.5b in 2QFY26 (in line). PAT in 1HFY26 grew at ~23% YoY and we expect PAT in 2HFY26 to grow at ~19% YoY.

BAF’s AUM is expected to grow at 25% (CAGR) for FY25-FY27, driven by favorable government reforms, such as the reduction in GST on auto and consumer durables, which is expected to drive demand.