Bajaj Finance shares hit record high, cross ₹7 lakh crore m-cap for the first time after Q1 results

Shares of Bajaj Finance surged nearly 7% on Friday, hitting a record high and pushing the company's market capitalisation past the ₹7 lakh crore mark for the first time. The rally came after the non-banking finance company (NBFC) reported strong June-quarter earnings that beat Street expectations.

The Bajaj Finance shares climbed as much as 6.9% to an all-time high of ₹1,128.80 on the BSE, extending its sharp rally over the past few months. Bajaj Finance has rebounded 43% from its 52-week low of ₹788.40 touched on March 23, 2026. The stock has gained 12% over the past month, 25% in six months and 28% over the past year. On a year-to-date basis, it has delivered returns of around 16%.

The sentiment was lifted after Bajaj Finance posted a 27.4% year-on-year increase in net profit attributable to owners at ₹5,986 crore for the quarter ended June, supported by healthy loan growth, resilient margins and lower credit costs. Net interest income (NII) rose 23% year-on-year to ₹12,571 crore, while assets under management (AUM) grew 24% to ₹5.47 lakh crore.

During the quarter, the lender added ₹36,969 crore to its loan book and disbursed 16.13 million new loans, taking its customer franchise to 124.43 million.

Asset quality also improved further, with gross non-performing assets (GNPA) declining to 0.96% from 1.03% a year ago, while net NPAs eased to 0.39% from 0.50%. Management also struck an optimistic tone on the credit cost outlook for the rest of FY27 and outlined plans to embed artificial intelligence across its operations to drive operational efficiency and customer engagement.

Brokerages remain positive post Q1

Post Q1, Motilal Oswal upgraded Bajaj Finance to ‘Buy’ from ‘Neutral’ and raised its target price to ₹1,300. The brokerage said the company has moved beyond its earnings normalisation phase and entered a period of structurally higher earnings growth, supported by broad-based loan growth, resilient margins, improving asset quality and lower credit costs.

It expects Bajaj Finance to deliver a profit CAGR of around 30% over FY26-FY28 and raised its FY27 and FY28 earnings estimates by 4% and 2%, respectively.

JM Financial maintained its ‘Buy’ rating and increased its target price to ₹1,250 from ₹1,220. It said the lender delivered a class-leading performance, with profit exceeding expectations due to higher non-interest income and lower-than-expected credit costs. The brokerage expects AUM and earnings CAGR of around 23% and 29%, respectively, over FY26-FY28.

HDFC Securities also retained its ‘Buy’ recommendation with a target price of ₹1,100. It highlighted healthy AUM growth, improving asset quality and a robust customer acquisition engine, though it noted that current valuations could limit near-term upside.

According to Mirae Asset Sharekhan, Bajaj Finance's June-quarter performance was driven by strong operating execution and improving asset quality. The brokerage highlighted a 23% rise in NII, lower-than-expected credit costs and better asset quality, which helped profit exceed estimates. It also noted that growth was led by mortgages, consumer finance, gold loans, commercial lending and vehicle finance, while the company continued to maintain tight control over operating expenses.

Analysts believe the improving credit cycle, lower delinquencies, healthy loan growth and expanding digital ecosystem position Bajaj Finance for another phase of strong earnings growth, even as valuations remain elevated relative to peers.

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