Bajaj Finance shares crash 8% after Q2; here’s why

Shares of Bajaj Finance , one of the country’s largest non-bank lenders, fell over 8% in intraday trade today as investors reacted negatively to its September-quarter results, released after market hours on Monday. The sell-off was triggered after the NBFC cut its growth guidance for assets under management (AUM) for FY2025–26, despite posting decent earnings largely in line with Street estimates.

Bajaj Finance shares declined as much as 8.14% to hit a low of ₹997 on the BSE, driven by strong volumes. Around 7.68 lakh shares changed hands compared to the two-week average of 2.69 lakh, while the company’s market capitalisation slipped to ₹6.22 lakh crore.

Earlier today, the Bajaj Group stock opened lower at ₹1,042.05, down 4% from its previous close of ₹1,085.40. The NBFC’s stock had touched its 52-week high of ₹1,102.45 on October 23, 2025, while its 52-week low stood at ₹645.31 on November 21, 2024.

Over the past year, Bajaj Finance shares have delivered a 48% return, while gaining 11% in the last six months. However, the counter has declined over 3% in the past month.

Bajaj Finance, a subsidiary of Bajaj Finserv , reported a 22% year-on-year rise in profit after tax (PAT) to ₹4,875 crore for the September 2025 quarter, marginally below Street expectations of ₹4,969 crore. Net interest income (NII) grew 22% to ₹10,785 crore, while net total income increased 20% to ₹13,170 crore.

Despite a strong Q2 performance, management lowered its FY26 AUM growth guidance to 22–23%, from the earlier 24–25%, citing rising stress in the MSME and captive two- and three-wheeler portfolios.

During the quarter, the company disbursed 1.22 crore new loans, up 26% from 97 lakh a year earlier. Its customer franchise expanded 20% year-on-year to 11.06 crore, with 41.3 lakh new customers added between July and September 2025.

On the asset quality front, there was a mild deterioration. Gross non-performing assets (NPAs) rose to 1.24% of total loans as of September 2025, compared with 1.06% a year earlier, while net NPAs increased to 0.6% from 0.46% in the corresponding quarter last year.

Following the downward revision in management guidance, JM Financial cut its EPS estimates by 3% and 2% for FY26E and FY27E, respectively, and downgraded the stock to ‘ADD’ from ‘BUY’. Meanwhile, Motilal Oswal reiterated its ‘Neutral’ rating on Bajaj Finance, citing limited upside catalysts given the rich valuations and lack of near-term re-rating triggers.

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