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Bajaj Finance Trims AUM Outlook as NPAs Rise; Shares Drop During Mixed Q2 Earnings Season

Management flagged credit costs near the top of its FY26 range and signaled improvement only in FY27.

Overview

  • Bajaj Finance reported consolidated PAT of about Rs 4,948 crore, up ~23% year-on-year, with NII up 22% and AUM rising 24% to Rs 4.62 lakh crore.
  • Asset quality weakened as gross NPA increased to 1.24% and net NPA to 0.60%, with loan-loss provisions up 19% and stress concentrated in MSME and captive 2/3-wheeler portfolios.
  • The lender cut FY26 AUM growth guidance to 22–23% from 24–25% and said credit costs will stay at the higher end of its 1.85–1.95% range, sending the stock down roughly 7%.
  • Broker views diverged, with houses such as Morgan Stanley staying positive and Bernstein remaining cautious on rising stress and margins.
  • BSE posted a strong quarter with PAT at Rs 558 crore (+61% YoY) and revenue up 44%, lifting its shares, while Bajaj Auto delivered in-line profit growth and margins and Bajaj Finserv and Bharat Forge reported steady gains.