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Bajaj Finance Limited
(BAJFINANCE)
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Rating:63Neutral
Price Target:
₹1,046.00
▲(3.29% Upside)
Action:Reiterated
Date:10/19/26
The score is led by strong profitability and growth signals (income performance and a positive earnings call with maintained high-growth guidance). Offsetting this are financial risk flags—high leverage and notably volatile operating/free cash flow—plus mixed-to-weak technical momentum and a relatively high P/E with low dividend yield.
Positive Factors
Growth and Profitability
Rapid AUM and PAT expansion, paired with a 20.6% ROE, indicates the lending platform is scaling while retaining strong profitability. Maintained FY27 and medium-term growth guidance provides a durable operating plan, supporting continued origination, customer acquisition, and earnings expansion over the next several quarters.
Negative Factors
High Leverage
Debt-to-equity of roughly 2.9x-3.2x leaves the asset-led lender sensitive to funding conditions and credit cycles. High leverage can constrain flexibility during stress and makes sustained balance-sheet expansion more dependent on continued access to funding and disciplined risk management.
Read all positive and negative factors
Positive Factors
Negative Factors
Growth and Profitability
Rapid AUM and PAT expansion, paired with a 20.6% ROE, indicates the lending platform is scaling while retaining strong profitability. Maintained FY27 and medium-term growth guidance provides a durable operating plan, supporting continued origination, customer acquisition, and earnings expansion over the next several quarters.
Read all positive factors
Bajaj Finance Limited (BAJFINANCE) vs. iShares MSCI India ETF (INDA)
Market Cap
₹5.85T
Dividend Yield0.64%
Average Volume (3M)428.09K
Price to Earnings (P/E)26.9
Beta (1Y)1.34
Revenue Growth18.79%
EPS Growth18.22%
CountryIN
Employees71,613
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)30.60
Shares Outstanding6,225,957,000
10 Day Avg. Volume544,877
30 Day Avg. Volume428,088
Financial Highlights & Ratios
PEG Ratio1.90
Price to Book (P/B)4.37
Price to Sales (P/S)6.08
P/FCF Ratio14.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,222.50Price Target Upside20.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)41.45
Revenue Forecast (FY)₹653.46B
Bajaj Finance Limited Business Overview & Revenue Model
Company Description
Bajaj Finance Limited, an Indian non-banking financial institution based in Pune, was founded in 1987 and operates as a subsidiary of Bajaj Finserv Limited. The company provides a comprehensive suite of financial products and services. Its diverse...
How the Company Makes Money
Bajaj Finance primarily makes money by earning a spread between the interest income it receives on loans and the cost of funds it pays to raise capital. Its core revenue is generated from interest and fee-based income across a diversified loan boo...
Bajaj Finance Limited Earnings Call Summary
Earnings Call Date:Oct 19, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Jan 20, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall, supported by 26.5% AUM growth, 29% PAT growth, broad-based business expansion, healthy returns, improving credit costs, strong customer additions, and continued technology investment. Management also acknowledged pressure from higher Stage II assets, macro and management overlays, NIM compression, regulatory uncertainty, regional credit risks, and intense gold-loan competition, but described these issues as actively managed and maintained its growth and profitability guidance.Positive Updates
Strong Quarterly Financial Performance
Management described Q2 as an excellent quarter, with AUM growing 26.5% to INR 584,624 crore, net AUM addition of close to INR 38,000 crore, PBT growing 29% to INR 8,537 crore before the macroeconomic provision, PBT growing 34% to INR 8,874 crore after the provision, and PAT growing 29% to INR 6,367 crore, or 34% to INR 6,619 crore before the macro overlay provision.
Negative Updates
Higher Stage II and Stage III Assets
Stage II and Stage III assets increased by INR 1,601 crore. Management said approximately INR 1,047 crore of the Stage II increase came from the gold loan business, although INR 550 crore had already been resolved and moved back to Stage I.
Read all updates
Q2-2027 Updates
Positive
Negative
Strong Quarterly Financial Performance
Management described Q2 as an excellent quarter, with AUM growing 26.5% to INR 584,624 crore, net AUM addition of close to INR 38,000 crore, PBT growing 29% to INR 8,537 crore before the macroeconomic provision, PBT growing 34% to INR 8,874 crore after the provision, and PAT growing 29% to INR 6,367 crore, or 34% to INR 6,619 crore before the macro overlay provision.
Read all positive updates
Company Guidance
Management said FY 2027 new loans should be between 60 million-62 million and customer additions between 18 million-20 million, with growth between 26%, 27% on a full-year basis and medium-term growth guidance of 23%-25%; MSME should see a double-digit kind of growth momentum in the second half, OpEx to NTI should improve by 25 basis points-40 basis point, and credit costs should remain in the same corridor, a similar corridor. Gold loan branches are expected to end the year at close to 2,800-odd standalone gold loan branches, while BHFL monthly disbursals are expected to reach INR 800 crore a month exiting the year and INR 1,300, INR 1,400 crore a month sometime by third quarter of next year. Management expects two more increases in the current year to take rates to 6% kind of rates, with a marginal additional compression versus the 10 basis points-15 basis point compression previously guided, and expects to sustain 15%-18% fee income growth. It also expects to reduce 3PL origination from 7% to 3.5% in the six months' time and halve the 2PL, 3PL number by Feb, while long-term guidance remains 20%-25% profit growth and 19%-21% return on equity.Bajaj Finance Limited Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
62
Positive
Cash Flow
46
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 819.89B | 671.27B | 530.51B | 395.27B | 298.86B |
| Gross Profit | 476.47B | 423.56B | 343.26B | 269.67B | 201.32B |
| EBITDA | 268.26B | 229.61B | 199.93B | 160.13B | 98.88B |
| Net Income | 190.17B | 166.38B | 144.51B | 115.08B | 70.28B |
Balance Sheet | |||||
| Total Assets | 5.60T | 4.66T | 3.76T | 2.75T | 2.13T |
| Cash, Cash Equivalents and Short-Term Investments | 157.55B | 135.44B | 106.24B | 43.05B | 33.81B |
| Total Debt | 3.67T | 2.90T | 2.34T | 1.73T | 1.33T |
| Total Liabilities | 4.43T | 3.67T | 2.99T | 2.21T | 1.69T |
| Stockholders Equity | 1.14T | 966.93B | 766.95B | 543.72B | 437.13B |
Cash Flow | |||||
| Free Cash Flow | 349.56B | -692.36B | 189.54B | -430.19B | -376.63B |
| Operating Cash Flow | 359.17B | -681.54B | 199.92B | -421.40B | -370.29B |
| Investing Cash Flow | -1.07T | -27.65B | -982.82B | -103.65B | 63.47B |
| Financing Cash Flow | 736.45B | 705.27B | 824.15B | 506.75B | 322.40B |
Bajaj Finance Limited Technical Analysis
Negative
1012.65
Price Trends
1004.11
Negative
1015.77
Negative
969.30
Negative
Market Momentum
-20.90
Negative
43.28
Neutral
38.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BAJFINANCE, the sentiment is Negative. The current price of 1012.65 is above the 20-day moving average (MA) of 949.46, above the 50-day MA of 1004.11, and above the 200-day MA of 969.30, indicating a bearish trend. The MACD of -20.90 indicates Negative momentum. The RSI at 43.28 is Neutral, neither overbought nor oversold. The STOCH value of 38.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BAJFINANCE.
Bajaj Finance Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ₹1.94T | 13.71 | ― | 1.51% | 10.10% | 14.42% | |
63 Neutral | ₹5.85T | 26.92 | ― | 0.64% | 18.79% | 18.22% | |
63 Neutral | ₹1.36T | 21.68 | ― | 0.13% | 20.67% | 32.42% | |
62 Neutral | ₹225.36B | 9.01 | ― | 0.76% | 36.50% | 190.08% | |
59 Neutral | ₹612.82B | 17.89 | ― | 1.12% | 17.30% | 26.39% | |
58 Neutral | ₹364.24B | 10.11 | ― | 4.47% | 14.94% | 36.58% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:BAJFINANCE
Bajaj Finance Limited
939.20
-97.03
-9.36%
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Bajaj Finance Limited Corporate Events
Bajaj Finance posts Q2 FY27 earnings call recording for investors
Oct 19, 2026
Bajaj Finance Limited has notified stock exchanges that it conducted its scheduled conference call to discuss financial results for the quarter ended September 30, 2026. The call took place on October 19, 2026, following earlier intimation to the ...
Bajaj Finance Board Clears Q2 FY27 Unaudited Results and Regulatory Filings
Oct 19, 2026
Bajaj Finance Limited announced that its Board of Directors has approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, prepared under Indian Accounting Standards. The results, su...
Bajaj Finance Releases Q2 FY2027 Investor Presentation and Schedules Earnings Call
Oct 19, 2026
Bajaj Finance Limited has released an investor presentation covering its financial and operational performance for the quarter ended 30 September 2026, in line with SEBI disclosure norms. The company has also scheduled a live webcast and conferenc...
Bajaj Finance Announces Extraordinary General Meeting via Video Conferencing
Oct 10, 2026
Bajaj Finance Limited has announced that it has dispatched the notice convening an Extraordinary General Meeting, which will be held on 2 November 2026 at 12:45 p.m. IST via video conferencing or other audio-visual means. The company has also prov...
Bajaj Finance Calls EGM to Approve Rs 5,800 Crore Preferential Warrant Issue to Promoter
Oct 9, 2026
Bajaj Finance Limited has convened an Extraordinary General Meeting of its shareholders and debenture holders for November 2, 2026, to be conducted via video conferencing and other audio-visual means in line with Indian securities regulations. The...
Bajaj Finance Plans Rs 17,500 Crore Twin Capital Raise via QIP and Warrants
Oct 1, 2026
Bajaj Finance Limited’s board has approved a substantial capital-raising plan aimed at strengthening its balance sheet and supporting future growth in its lending operations. The company intends to tap institutional investors and strategic p...
Bajaj Finance Board Clears Rs. 17,500 Crore Capital-Raising Plan
Oct 1, 2026
Bajaj Finance Limited, a major Indian non-banking financial company under the Bajaj Finserv group, provides diversified lending and financial solutions to consumers and businesses. The firm is listed on BSE and NSE and plays a significant role in ...
Bajaj Finance Board Clears Rs 17,500 Crore Capital Raise via QIP and Preferential Warrants
Oct 1, 2026
Bajaj Finance Limited’s board has approved a significant capital-raising plan through a Qualified Institutions Placement of equity shares of face value Re. 1 each, for an amount not exceeding Rs 11,700 crore, in line with SEBI’s Issue ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.