Bajaj Finance shares fell as much as 3.6% to an intraday low of ₹923.30 on the National Stock Exchange on Wednesday, October 21, 2026, after analysts highlighted margin pressure for the July‑September quarter and the likelihood of further compression in upcoming quarters. The non‑banking financial company’s stock was trading 3.34% lower at ₹925.35 per equity share at 12:14 PM. The shares have declined 3% in the past week, 9% over the month, and 5% year‑to‑date, despite a 52‑week high of ₹1,176.40 reached on August 3, 2026 and a year‑low of ₹787.90 on March 23, 2026. Bajaj Finance’s market capitalisation stood at ₹5.76 lakh crore as of October 21, 2026.

In its July‑September quarter of the 2026‑27 financial year (Q2 FY27), Bajaj Finance reported a 29% year‑on‑year surge in consolidated net profit to ₹6,367 crore, up from ₹4,948 crore in the corresponding period of the previous fiscal year. Net interest income (NII) grew 24% YoY to ₹13,335 crore from ₹10,785 crore in Q2 FY26. The company’s assets under management (AUM) reached ₹5.85 lakh crore, an increase of ₹37,680 crore during the quarter and a 26% YoY rise from ₹4.62 lakh crore a year earlier.

The new loan book expanded 11% YoY to 13.45 million, compared with 12.17 million in September 2025. Asset quality improved, with gross non‑performing assets falling to 1.06% of gross loans from 1.24% a year ago, and net NPAs easing to 0.42% from 0.6%. The company’s net slippage ratio declined 110 basis points YoY, and its pre‑provision operating profit (PPOP) came slightly above estimates, underscoring robust earnings performance across segments.

HSBC analysts noted that Bajaj Finance maintained segment‑leading performance and that MSME loan growth is likely to revive in coming quarters. They added that the company may find levers to offset potential revenue headwinds and protect its return on assets (ROA) and return on equity (ROE) over FY28 and FY29, with a potential capital raise viewed positively for growth and profitability. Nomura analysts observed that the Q2 FY27 net profit aligned with estimates and that management revised loan growth guidance for FY27 to 26‑27%, keeping medium‑term guidance unchanged.

Nomura further stated that management indicated marginal headwinds on net interest margins (NIM) due to a rising rate environment, trimmed earnings per share estimates by 2‑3%, and expects an ROA and ROE of 4.2% and 19.9% respectively over FY28‑29. JP Morgan noted strong operating performance in the September quarter, with key metrics in line with estimates, and highlighted the company’s upgrade of growth guidance to 26.27% as evidence of strong business momentum across segments. CLSA analysts praised the strong quarter on all fronts, citing AUM growth pickup and management’s FY27 growth guidance raise, while noting margin concerns from rate hikes.

CITI analysts remarked that the firm raised its AUM guidance as core metrics remained resilient, and that MSME lending stabilized as downward pressure eased. However, margin dipped 10‑12 basis points QoQ, with the likelihood of further compression. The company plans to raise equity capital for strong growth and leverage exceeding 5x, and will work to offset the impact of new insurance guidelines, though details were not specified. The report is purely informational and not investment advice.