Bajaj Finance shares fall 4% on margin pressure; here is what analysts said about Q2 results

The NBFC posted a 24% YoY growth in its net interest income (NII) to ₹13,335 crore during the quarter under review, as against ₹10,785 crore in the second quarter of the 2025-26 fiscal year (Q2 FY26).

The Pune-based company's assets under management (AUM) stood at ₹5.85 lakh crore in Q2 FY27, as it added ₹37,680 crore during the quarter. Its AUM increased by 26% YoY from ₹4.62 lakh crore in the same period last year.

Its new loan book grew by 11% YoY to 13.45 million for the reporting period, as against 12.17 million in the September quarter of FY26.

Its asset quality improved, with gross non-performing assets declining to 1.06% of gross loans by the end of September 2026 from 1.24% a year ago. Similarly, net NPAs, or bad loans, eased to 0.42% from 0.6%.

Here’s what analysts said

The analysts added that Bajaj Finance is likely to find levers to offset potential revenue headwinds and protect its return on assets (ROA) and return on equity (ROE) over FY28 and FY29. They noted that a potential capital raise will be positive for its growth and profitability.

The analysts further stated that the management has indicated marginal headwinds on Bajaj Finance’s net interest margins (NIM), given the rising rate environment. It also trimmed earnings per share (EPS) estimates by 2-3% and expects an ROA and ROE of 4.2% and 19.9%, respectively, over FY28-29.

The analysts stated that the company's upgrade of its growth guidance to 26.27% underscored its strong business momentum across segments. It also noted the continuation of benign asset quality trends across segments, with only a transient impact in gold in short-tenure products. They also made note of the company’s focus on the preservation of its RoA despite risking NIM from higher funding costs.

The analysts see Bajaj Finance as the best-in-class earnings compounder supported by a combination of healthy loan growth, operating leverage gains from ongoing AI initiatives and a strong track record of managing credit costs that should support a 21% earnings CAGR over FY27-29.

Its pre-provision operating profit (PPOP) came in slightly above estimates, and its asset quality remained strong with the net slippage ratio declining 110 basis points YoY. The management clarified that it will be raising equity capital for two reasons, including strong growth and leverage exceeding 5x. The management added that the company will work to offset the impact of the new insurance guidelines but did not specify the details.

Bajaj Finance share performance

At around 12:14 PM, the stock was trading 3.34% lower at ₹925.35 per equity share.

The scrip has declined 3% in the past week and 9% over the month. On a year-to-date (YTD) basis, it has lost 5%.

While the shares hit a 52-week high of ₹1,176.40 per unit on August 3, 2026, they touched a year’s low of ₹787.90 apiece on March 23, 2026.

Bajaj Finance has a total market capitalisation of ₹5.76 lakh crore as of October 21, 2026, according to data on the NSE.