Bajaj Finance Shares Drop 8% After Q2 Results as Profit Rises 22%

Swaraj

Published on November 14, 2025

Bajaj Finance shares fall 8% after Q2 results revealed a 22% rise in net profit to ₹4,875 crore and 24% AUM growth. Despite strong numbers, the stock fell as the firm cut its AUM growth guidance and reported higher NPAs, though analysts stayed optimistic.

Bajaj Finance is in the limelight due to the release of its Q2 results, which showed strong top-line growth but at the same time raised concerns regarding asset quality and growth guidance. The non-banking financial firm had collected a net profit of around ₹4,875 crores for straight three months that ended on September 30. There was a 22% increase compared to the previous year.

The Assets Under Management (AUM) of the firm increased and went up to 24% to around ₹4.62 lakh crore. This is an indicator of good demand across all the loans that are offered by the company. Even though the figures were positive, the market reaction was quite moderate: the stock saw a decline of 8% in early trading after the company changed its full-year AUM growth forecast from 22-23% to the previous one. As a warning bell, analysts indicate this downward revision, primarily brought about by the decline in its SME and housing sectors.

The quarter saw a rise in the gross non-performing assets (NPAs), which went up to 1.24% from 1.03% in the previous quarter in terms of asset quality; the net NPAs stood at 0.60%. One brokerage has calculated an estimated credit-cost guidance of 1.85% to 1.95% for the year. Most of the brokerage firms maintained their positive ratings on Bajaj Finance; however, they pointed out that there is a trade-off between large growth and increasing risk.

Also Read: Lenskart Shares List at 3% Discount: IPO Falls Short of Grey Market Estimates

For example, one global broker affirmed an ‘Overweight’ recommendation and a target price of around ₹1,195 by considering the company’s efficiency improvements and anticipated credit-cost normalisation. Another one not only upped its target to ₹1,200 but also projected a consistent return on assets and cost control, which would lead to a Compound Annual Growth Rate (CAGR) of 28% in EPS for FY26-28.