Bajaj Finance shares fall 3% after Q2 results. What Jefferies, Nomura, other brokerages now expect?

ETMarkets.com

Bajaj Finance on Monday released its results for Q2 FY27, reporting a 24% YoY increase in net interest income (NII) to Rs 13,335 crore during the quarter under review, from Rs 10,785 crore reported in the year-ago period. The company’s assets under management (AUM) grew 26% YoY to Rs 5.85 lakh crore. The stock dropped to Rs 929.20 apiece on NSE on Wednesday morning.

The non-banking financial company booked 13.45 million new loans in the second quarter, up 11% from 12.17 million reported in the corresponding period last year. Its customer franchise grew 16% YoY to 128.85 million as of September 30, adding 4.42 million customers during the quarter.

Also read |Bajaj Finance Q2 Results: Net profit jumps 29% YoY to Rs 6,367 crore, NII up 24%

Nomura on Bajaj Finance share price

Nomura maintained its ‘Buy’ rating on the shares of Bajaj Finance with a target price of Rs 1,270 apiece, implying nearly 33% upside potential in the stock’s previous closing price of Rs 957.35 apiece on NSE.

The international brokerage said the NBFC’s net profit was in line with its estimate, but 3% behind consensus. Its credit cost of 1.56% was lower than estimated. Growth momentum in all segments has been healthy, and in line with expectations till September 2026. The MSME book should grow in a double-digit range in the second half of FY27, as per management estimates, it added.

Given the rising rate environment, Bajaj Finance’s management has indicated marginal headwinds on NIMs. “We trim EPS estimates by 2-3% and expect ROA and ROE of 4.2% and 19.9% over FY28-29. We assume the capital raising to be completed in FY27F itself,” Nomura added.

Jefferies on Bajaj Finance share price

Jefferies maintained its ‘Buy’ rating on the shares of Bajaj Finance but reduced its target price to Rs 1,230 apiece from Rs 1,280 apiece. The international brokerage said that company’s profit was in line with estimate. While stressed loans saw a slight rise from gold loans, management sees a negligible impact and confirmed that asset quality stays strong.

Clarity on flexi-loans & banca fees will be watched and management is taking mitigating steps, Jefferies said. “We marginally trim estimates and see 25% Cagr in profit over FY26-29. BAF stays among our top- picks,” Jefferies added.

360 One WAM on Bajaj Finance share price

360 One WAM upgraded its rating on the shares of Bajaj Finance from ‘Hold’ to ‘Buy’, with a target price of Rs 1,150 apiece. This implies more than 20% upside potential from the stock’s previous closing price.

The domestic brokerage said Bajaj Finance delivered NII in line with estimates, while lower-than-expected fee income resulted in a marginal miss on PPOP and PAT. Growth remained the key highlight, with AUM expanding 26.5% YoY, prompting management to raise its FY27 growth guidance to 26-27% from 22-24% earlier. Accordingly, 360 One WAM has upgraded its growth estimates for FY27-28.

Overall, the brokerage believes that Bajaj Finance delivered a strong quarter, supported by healthy growth, positive demand commentary and prudent risk management. “We have factored in capital infusion and warrant conversion over FY27-28, resulting in a higher book value but lower estimated RoE of 20% versus 22% earlier…Following the recent correction and the resulting improvement in risk/reward, we upgrade the stock to Buy from Hold,” it said.

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Bajaj Finance share price

Bajaj Finance shares have fallen more than 6% in a month and around 2% in 2026 so far, with the stock overall down 12% in one year.

Over the longer term, the shares of the non-banking financial company delivered positive returns of more than 23% in three years and 24% in five years. The company has a market capitalisation of more than Rs 5.96 lakh crore.