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Bajaj Finance Shares Drop 7% After Lower AUM Outlook and Rising NPAs

Top brokerages still call the lender a top pick, citing compounding earnings potential.

Overview

  • Bajaj Finance cut its FY26 assets under management growth guidance to 22–23%, triggering a sharp sell‑off in early trade on Nov. 11.
  • Q2 FY26 consolidated profit rose about 23% to roughly Rs 4,948 crore, with AUM up 24% to Rs 4.62 lakh crore and net interest income higher by 22%.
  • Asset quality weakened as gross NPA climbed to 1.24% and net NPA to 0.60%, while loan losses and provisions increased around 19%.
  • Management flagged elevated credit costs near the top of its 1.85%–1.95% guidance range and highlighted stress in MSME and captive two‑/three‑wheeler portfolios, with tighter unsecured MSME disbursals.
  • Analyst views diverged, with Jefferies and CLSA retaining positive calls even as others trimmed estimates; elsewhere in Q2 results, Bajaj Auto posted strong margins while Emami’s profit fell about 30%.