Bajaj Finance Share Falls After Q1 2026 Results & Split Update

Bajaj Finance has solidified its standing as India's number one non-banking financial company (NBFC), always garnering interest from investors, analysts, and financial professionals alike. After its big Q1 FY2026 numbers, Bajaj Finance has remained a topic of discussion with exciting movement in its share price, corporate actions like share splits and bonus issues, and long-term opportunities and risks. 

Bajaj Finance Q1 FY2026 Results

• Net Profit : At ₹4,765 crore, Bajaj Finance reported an increase of 22% year-on-year (YoY), compared to ₹3,912 crore last year. The increase suggests Zalcm's solid operational efficiency and earnings power.

• Net Interest Income (NII) : The NII increased 22% YoY, to ₹10,162 crore, due to buoyant loan portfolio growth and increased yields.

• Total Revenue : Overall, consolidated revenues grew 21% YoY to ₹19,524 crore, once again demonstrating the success of Bajaj Finance's business model.

• Assets Under Management (AUM) : AUM increased 25% YoY to ₹4.42 lakh crore, highlighting Bajaj Finance's strengthening position in retail lending.

Customer and Loan Book Expansion

• New Loans Booked : In the quarter, Bajaj Finance booked a record 13.49 million new loans at 23% YoY growth. 

• Customer Base : The customer base grew by 21% YoY to 106.51 million; evidence of the company's attraction in segments.

• Deposit Mobilisation : Deposit mobilisation increased by 15% YoY to ₹72,109 crore; deposits represent19% of borrowings and reflects customer trust and diversification of funding.

Segmental Analysis and Business Performance

Growth Drivers

• Mortgages : This segment propelled the surge with a ₹136 billion loan book, primarily aided by a rebound in demand for home financing.

• Urban B2C Loans : This segment clocked in at ₹92,333 billion, capitalizing on rising urban consumption and the credit appetite in India.

• MSME Lending : With an AUM of ₹52,538 crore, Bajaj Finance’s MSME portfolio is resilient and demonstrates underlying market opportunity.

Areas of Concern

• Vehicle Lending : The 20% year-on-year AUM decline in the two- and three-wheeler finance segment indicates stress in the sector impacting overall segment profitability.

• Microfinance : had a good first quarter with ₹1,556 crore in loans, an important step for future diversification.

• Asset Quality : The gross NPA (non-performing assets) increased to 1.03% and net NPA to 0.50%, from 0.86% and 0.38% respectively year-on-year. Stage 3 assets were up ₹554 crore. Provisions increased 26% year-on-year to ₹2,120 crore showing a strong stance on risk management during difficult credit environments.

Bajaj Finance Share News

Stock Market Reaction

Despite stellar quarterly results, Bajaj Finance shares experienced substantial volatility, with a sharp sell-off following Q1 FY2026 earnings:

• Previous Close (July 24, 2025): ₹958.95

• Opening Price (July 25, 2025): ₹906.40

• Intraday Low: ₹900 (more than 5% down)

Reasons for Drop:

• Concerns over rising NPAs and higher provisioning.

• Stress in MSME and vehicle loan portfolios.

• Investor profit booking after strong recent gains.

Share Split and Bonus Issue

Bajaj Finance executed a share split and bonus issue to make stock ownership more accessible and improve liquidity:

Such actions improve liquidity, help retail participation, and increase the attractiveness of Bajaj Finance shares.

Bajaj Finance Share Price Target 2025

A wide array of brokerages has provided their outlook and bajaj finance share price target following the Q1 results:

For short-term investors, analysts suggest holding with a stop-loss at ₹870, adding more at current levels if appropriate risk management is in place.

Expert Recommendations: What Should Investors Do?

For Existing Investors

• Hold for Potential Upside : The majority of analysts maintain Bajaj Finance shares as a hold position with an upside target of ₹950 - ₹960, with a rigorous stop-loss of ₹870.

• Watch Risks : There are still lingering asset quality concerns, predominantly MSME loans, as well vehicle loans which will continue to create volatility.

For New Investors:

• Buy the Dip : New or fresh investors should consider accumulating on dips for a company with strong fundamentals and positive long-term outlook.

• Diversified Benefit : Shares have become more liquid and affordable for retail investors with a stock split and bonus shares in play.

Long-Term Outlook

Bajaj Finance remains a leading NBFC thanks to:

• Stable earnings and loan growth.

• Strong retail franchise and diversified model.

• Good cost management and supportive digital developments.

Nonetheless, potential headwinds are:

• Macro-economic uncertainty and changing interest rate conditions.

• Diversification of the loan book remains crucial for managing sector-specific risks.

• Tightening regulatory expectations for NBFCs.

Bajaj Finance Subsidiaries: Driving Diversification

Bajaj Finance’s subsidiaries continue to post strong results:

• Bajaj Housing Finance : Net profit up 21% YoY, driven by housing loan demand.

• Bajaj Financial Securities : Net profit up 37% YoY, showcasing robust growth in the securities segment.

These results reinforce Bajaj Finance’s ability to diversify revenue streams and weather sector-specific challenges effectively.

Conclusion

Bajaj Finance delivered a strong operational performance in Q1 FY2026 despite short-term pressures on asset quality and certain loan segments. The company’s clarity of vision, robust financial discipline, and strategic corporate actions like share splits and bonus issues underline its commitment to maximizing shareholder value.

Disclaimer : This article presents publicly available information and expert analysis to deliver fair and balanced coverage of bajaj finance share news. Investors are advised to consult certified financial professionals before making investment decisions.

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