Bajaj Finance Share Falls 5% After Q1 FY26 Results: What Investors Should Know

Bajaj Finance Share: Q1 FY26 Update and What Investors Should Know

Bajaj Finance is one of India’s top NBFCs (Non-Banking Financial Companies), offering everything from consumer loans to business finance. The company is widely followed by investors and analysts because of its steady growth and market influence.

On July 25, 2025, Bajaj Finance shares saw a sharp drop following the release of its Q1 FY26 results. This article explains what happened, how the market reacted, and what this means for investors.

Bajaj Finance Share Price: July 25, 2025

On July 25, Bajaj Finance shares closed at ₹908.25 on the NSE, which was a 5.29% drop from the previous day’s close of ₹958.95. This drop came despite the company reporting a strong increase in profits. Here’s a quick look at the stock data:

Metric	Value
Share Price	₹908.25
Change	-₹50.70 (-5.29%)
Market Cap	₹56,441.26 crore
52-Week High	₹978.80 (June 9, 2025)
52-Week Low	₹642.50 (August 16, 2024)
P/E Ratio	3.38 (Sector avg: 30.63)
Traded Volume	72.59 lakh shares
2025 YTD Performance	+35.80%
Last 5 Days	-1.63%

Despite a solid start to the year, recent volatility has raised questions among investors.

Bajaj Finance Q1 FY26 Results: Key Highlights

Bajaj Finance reported its financial results for the April-June quarter of FY26. The numbers showed solid year-on-year growth, but there were some areas of concern.

📌 Highlights from Q1 FY26:

• Net Profit: ₹4,700 crore (up 20% YoY)
• Revenue: ₹19,524 crore (up 21% YoY)
• AUM (Assets Under Management): ₹4.41 lakh crore (up 25% YoY)
• Net Interest Margin (NIM): Steady at 10.4%
• Gross NPA: Increased from 0.86% to 1.03% YoY
• Net NPA: Rose from 0.38% to 0.50% YoY
• Credit Cost: 202 basis points (above guidance of 185-195 bps)
• Return on Assets (RoA): 4.5% (within 4.3–4.7% range)
• New Loans Booked: Up 23% YoY

While profits and AUM were impressive, the rising NPAs and credit costs raised some red flags.

Sequential Comparison: Some Slowdown

Although the year-on-year growth looked healthy, revenue fell 2.27% quarter-on-quarter, which was the slowest topline growth in three years. This could signal pressure on future growth momentum, especially if credit quality remains an issue.

Leadership Change and Market Impact

A big reason for the stock drop on July 25 was news about a leadership change.

What happened?

• Anup Kumar Saha, the Managing Director, resigned earlier in the week.
• Rajeev Jain has taken over as Vice Chairman and MD.
• The agenda for Saha’s re-appointment was withdrawn from the 38th AGM.

This change made some investors nervous about continuity and future leadership strategy.

Equity Share Issuance

On July 24, 2025, Bajaj Finance’s board approved the issuance of 8,195,345 equity shares under the Employee Stock Option Scheme (ESOS) 2009.

This move is meant to reward employees, but it also means existing shareholders may face minor dilution of their holdings.

Earnings Call Takeaways

During the earnings call on July 23, 2025, Bajaj Finance’s management gave an optimistic view of the business. Here’s what stood out:

• AUM growth remains strong.
• The number of borrowers eligible for cross-selling has gone up.
• Management believes most asset stress has already been recognized.

Despite the upbeat tone, the market seemed more focused on the near-term risks.

Analyst Ratings and Opinions

Not all analysts are on the same page about Bajaj Finance. Here’s what some major firms had to say:

Bernstein

• Rating: Underperform
• Target Price: ₹640
• Concerns: Elevated credit cost and RoA pressure despite 20% profit growth.

Macquarie

• Rating: Underperform
• Target Price: ₹800
• Concerns: SME credit cost remains high, and profit growth guidance was trimmed.

What people said on X:

• @StocktwitsIndia: Highlighted the 20% YoY profit growth and the company’s long-term value.
• @bvlldhist_alt: Appreciated the AUM growth but flagged rising NPAs as a backward-looking stress indicator.
• @PositiveGamma: Noted a drop in branch count, suggesting possible cost control steps.

Institutional Holdings

Let’s take a look at who holds Bajaj Finance shares as of mid-2025:

Holder	June 2025	Previous
Promoters	54.73%	—
FIIs	18.9%	17.76% (Dec 2024)
DIIs	14.77%	15.05%
Mutual Funds	9.0%	9.3% (Mar 2025)

Foreign investors have increased their stake, while mutual funds and DIIs slightly reduced theirs.

Technical Outlook and Price Trends

Price Movement

Before the July 25 fall, Bajaj Finance was showing stable movement with some upside. On July 23, it even gained 1.11%.

Target Price (12-month forward)

• Median Analyst Target: ₹957.97
• High Estimate: ₹1,116.10
• Low Estimate: ₹631.90

Ratios to Watch:

Metric	Value
P/E Ratio	34.56 (Industry Avg: 21.67)
Debt-to-Equity	3.736

These numbers show the stock is priced at a premium, and high debt levels may raise caution for risk-averse investors.

Bajaj Finance in Broader Market Context

Bajaj Finance is a key stock in indexes like the Nifty 50, BSE Sensex, and Nifty Financial Services. It’s one of the biggest names in the NBFC space, with a mix of:

• Consumer loans
• SME finance
• Commercial lending

Challenges Ahead:

• Higher interest rates
• Stricter RBI regulations
• Macroeconomic uncertainty

The company needs to manage these risks carefully while keeping its asset quality in check.

Strategy and Future Outlook

Bajaj Finance isn’t sitting still. Here’s what the company is focusing on for future growth:

Key Areas:

• Cross-selling opportunities: More customers are eligible now.
• Digital transformation: The company has gone big on tech to improve service and reach.
• Product range: Offers 26 product lines and 51 product variants.

The wide reach—both in cities and rural areas—gives it an edge. But the recent leadership change and rising credit costs may create some uncertainty in the short term.

Frequently Asked Questions (FAQs)

📉 Why did Bajaj Finance shares fall on July 25, 2025?

Mainly due to concerns about higher NPAs, rising credit costs, and the unexpected resignation of MD Anup Kumar Saha.

💰 Did Bajaj Finance report a profit in Q1 FY26?

Yes, the net profit was ₹4,700 crore, a 20% increase compared to the same quarter last year.

📊 Is the stock overvalued?

Some analysts think so. With a P/E of 34.56 and high debt, valuation concerns are valid.

👨‍💼 Who is the new MD of Bajaj Finance?

Rajeev Jain has been appointed as the Vice Chairman and MD.

🏦 Is it a good time to invest in Bajaj Finance shares?

It depends on your risk profile. The company has strong fundamentals, but short-term risks exist due to rising costs and leadership changes.

Bajaj Finance has shown strong numbers with a 20% jump in profit and a 25% growth in AUM. But the stock still dropped sharply due to worries about rising bad loans, high credit costs, and the surprise resignation of its MD.

Some analysts are cautious, while others believe in its long-term potential thanks to its wide reach, strong brand, and use of technology. If you’re an investor, this might be a good time to watch closely rather than rush in.

The coming quarters will be key to seeing how the company handles costs, maintains asset quality, and navigates leadership changes.

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