Bajaj Finance Q1 profit rises 21.8%; Should You Buy, Sell or Hold?

Bajaj Finance reported its financial results for the first quarter of FY26, ending June 30, 2025. The company posted a 21.8 per cent year-on-year increase in net profit to Rs 4,765.29 crore, compared with Rs 3,911.98 crore in Q1 FY25. Consolidated revenue rose 21 per cent to Rs 19,524 crore from Rs 16,100 crore in the same period last year. Brokerages remain divided on Bajaj Finance. 

The NBFC recorded 1.35 crore loan bookings in Q1 FY26, a 23 per cent increase over 1.09 crore in Q1 FY25. Its customer base expanded by 21 per cent to 10.65 crore. Assets under management (AUM) rose 25 per cent to Rs 4,41,450 crore from Rs 3,54,192 crore year-on-year. Net interest income (NII) increased 22 per cent to Rs 10,227 crore.

Despite the strong growth figures, Bajaj Finance shares ended 0.95 per cent lower at Rs 959 on the BSE on July 24.

Should You Buy, Sell or Hold Bajaj Finance Shares?

Brokerage firms offered varied perspectives on Bajaj Finance’s results and outlook:

JP Morgan downgraded the stock to Neutral from Overweight, citing concerns about asset quality in mortgage, MSME, and two/three-wheeler loans. The target price was lowered to Rs 970 from Rs 980.

Goldman Sachs maintained a Neutral rating and lowered the target price slightly to Rs 969 from Rs 977.

CLSA retained an Accumulate rating and raised its target price to Rs 1,150 from Rs 1,100.

Jefferies maintained a Buy rating and increased the target price to Rs 1,100 from Rs 1,044, citing healthy growth despite some pressure in the MSME segment.

Morgan Stanley continued with an Overweight rating and a target price of Rs 1,050.

Macquarie kept an Underperform rating and lowered its target to Rs 800, highlighting elevated credit costs and stress in the SME segment.

Bernstein maintained an Underperform rating with a target price of Rs 640, noting credit costs above guidance and a return on assets (RoA) within the recently revised range.

Citi kept a Neutral rating with a target price of Rs 983.

HSBC maintained a Buy rating and target price of Rs 1,080.

Disclaimer: For informational purposes only. Do your own research or consult a financial advisor before investing.