Bajaj Finance
Bajaj Finance is India's largest diversified NBFC, lending across consumer durables, personal loans, SME, mortgages, gold loans and rural/urban retail finance through a huge digital and branch network.
- P/E ~29-30x
- Results due 19 Oct 2026
- ₹17,500cr capital raise
- Promoter 54.7%, no pledge
- Down 15% from Aug peak
Updated on 14 Oct 2026 · Data as of 13 Oct 2026
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Snapshot
- Share price
- ₹982.75
- 13 Oct 2026
- 52-week range
- ₹796.65 – ₹1,158.80
- All-time peak
- ₹1,158.80
- 5 Aug 2026 · −15.2% from peak
- Dividend yield
- 0.61%
- Price history since
- 2002
- About 24 years of prices
What's happening
Bajaj Finance reports Q2 FY27 (quarter ended 30 Sep 2026) results on 19 October 2026 - just days away - with the earnings call the same evening. A provisional business update already released on 3 October 2026 showed AUM at roughly Rs 5.85 lakh crore, up 26.5% YoY, and the customer franchise crossing 128.85 million. Separately, the board approved a Rs 17,500 crore capital raise (QIP plus promoter warrants) on 1 October 2026, with an EGM for shareholder approval set for 2 November 2026.
In plain terms
This is a large, well-run lender that keeps growing its loan book at 24-26% a year with improving asset quality - but the market has already priced in a lot of that good news. The stock is down about 15% from its August 2026 peak, hit first by RBI's draft rules on NBFC 'flexi loan' products and then by investor unease over a large new share and warrant issue that will dilute existing shareholders' earnings per share by an estimated 3% next year. The tension: strong, broad-based growth versus a premium valuation and fresh regulatory/dilution noise.
Quarters
PAT trend: Q2 FY26 (Sep-25) Rs 4,948 cr, +23% YoY. Q3 FY26 (Dec-25) reported PAT fell 6% to Rs 4,066 cr, but this included one-off 'accelerated/exceptional' provisions - core PAT excluding that item actually rose 23% to Rs 5,317 cr, so the headline decline is an accounting artifact, not weaker underlying business. Q4 FY26 (Mar-26) PAT Rs 5,465 cr, +22%, AUM crossed Rs 5 lakh crore. Full FY26 PAT was Rs 19,017 cr, +14.3% YoY - a softer full-year number purely because of the Q3 one-off, not a real growth slowdown. Q1 FY27 (Jun-26) PAT rose 27-28% YoY to roughly Rs 5,986-6,081 cr (sources vary slightly), AUM Rs 5.47 lakh crore (+24% YoY), NII +23%, and loan losses to average AUM improved to 1.54% from 1.87%; management still added a Rs 296 cr macro provision for geopolitical/monsoon risk. Management reiterated FY27 guidance: AUM growth 22-24% (consolidated 23-25%), PAT growth 23-24%, GNPA below 1.4%, NNPA below 0.5%, ROA 4.3-4.7%, ROE 19-21%.
Performance
Heads-up on splits: Bajaj Finance has split its shares or issued bonus shares before (most recently 2-for-1 on 16 Jun 2025 and 5-for-1 on 8 Sept 2016). A sudden price drop around a split date is usually just the price adjusting for the extra shares, not a crash.
Share price
−4.6% over 1 year
Returns by period
| Period | Bajaj Finance | Nifty 50 | Shriram Finance |
|---|---|---|---|
| 3 months | −2.4% | −5.5% | −2.5% |
| 1 year | −4.6% | −9.9% | +48.7% |
| 3 years | +24.4% | +15.2% | +177.3% |
| 5 years | +27.1% | +25.1% | +295.0% |
₹100 invested on 13 Oct 2021 became…
- Bajaj Finance₹127
- Nifty 50₹125
- Shriram Finance₹395
Over 1 year the stock is down 4.6%, which still beats the Nifty's -9.9%, but it has badly lagged its closest listed peer, Shriram Finance, which returned +48.7% over the same period, +177% over 3 years and +295% over 5 years versus Bajaj Finance's +24.4% and +27.1%. That gap, not the 15.2% pullback from the August 2026 peak, is the uncomfortable fact here - a stock with arguably better asset quality and brand has compounded far slower than its peer for several years running. The company did carry out stock splits (5:1 in 2016, 2:1 in June 2025); the price and return series supplied are already adjusted for these, so the splits are a context note, not a distortion to the returns above.
Dividend
Paid in the last 12 months
₹6.00 per share
Dividend yield
0.61%
Dividend yield is the last 12 months of dividends divided by today's share price. A 0.6% yield means every ₹100 of Bajaj Finance shares paid about ₹0.6 in dividends over the past year. Past payouts can change.
Recent dividends
| Date | Per share |
|---|---|
| 30 Jun 2026 | ₹6.00 |
| 30 May 2025 | ₹4.40 |
| 9 May 2025 | ₹1.20 |
| 21 Jun 2024 | ₹3.60 |
| 30 Jun 2023 | ₹3.00 |
| 30 Jun 2022 | ₹2.00 |
| 8 Jul 2021 | ₹1.00 |
| 3 Mar 2020 | ₹1.00 |
Valuation
Trading near 29-30x trailing earnings and roughly 5x book, against a sector average P/E closer to 22-23x. The reason it looks expensive is straightforward - the market is paying up for its scale, diversification and a long track record of 20%+ compounding with controlled credit costs. Whether that premium is justified is a separate question: at this multiple, most of the next year or two of expected growth is already in the price, so the upside case depends on Bajaj Finance actually delivering its 23-24% PAT growth guidance, not on the multiple expanding further.
Growth
Growth is volume-led: AUM is expanding 24-26% a year across nearly every segment (gold loans +112% YoY, rural consumer finance +49%, urban consumer finance +38% in recent quarters) rather than coming from margin expansion - net interest margins have stayed broadly steady. That's generally the more durable kind of growth for a lender, but it also means credit costs matter - management's extra Rs 296 cr macro provision in Q1 FY27 signals some caution around unsecured lending and broader NBFC-sector stress (RBI's draft flexi-loan rules fall in this bucket too).
Health
Profits are converting to real cash in the normal course of an NBFC's interest-income business, and asset quality is improving, not deteriorating - net NPA was 0.39% in Q1 FY27 and loan-loss ratio to AUM fell to 1.54% from 1.87% YoY. The bigger watchpoint is business/regulatory risk rather than balance-sheet or solvency risk: RBI's draft NBFC lending norms and the need to raise fresh capital (Rs 17,500 crore via QIP and warrants) ahead of continued fast growth suggest management is being prudent about capital adequacy, but the raise itself creates near-term EPS dilution.
Ownership
The Bajaj family holds roughly 54.7% through the promoter group (largely via Bajaj Finserv), unchanged recently, with no reported pledging - a clean, stable control structure. FIIs hold about 19.8% and DIIs about 17%, with the remaining ~8.5% public float. No well-known individual 'super-investor' name appears among the disclosed major holders - ownership here is institutional and promoter-dominated rather than built around any single famous investor.
The View
The one thing to watch
The Q2 FY27 results on 19 October 2026 - specifically whether credit costs and the macro/geopolitical provisioning stay contained, and whether management reaffirms FY27 AUM/PAT guidance despite the dilution from the new capital raise.
Strengths
- +AUM at Rs 5.47 lakh crore in Q1 FY27, up 24% YoY, growth broad-based across consumer, rural, gold loans and mortgages
- +Asset quality improving: net NPA at 0.39% and loan-loss-to-AUM down to 1.54% from 1.87% YoY
- +Promoter holding stable at ~54.7% with no pledging
- +FY27 guidance of 19-21% ROE, among the highest sustained return profiles in the NBFC space
Watchpoints
- !Valuation at ~29-30x trailing P/E versus a ~22-23x sector average leaves little room for a growth miss
- !Rs 17,500 crore QIP-plus-warrant capital raise (board approved 1 Oct 2026, EGM 2 Nov 2026) estimated to dilute EPS by roughly 3% in FY27
- !RBI's August 2026 draft norms on NBFC flexi-loan products triggered a ~6% single-day fall and remain an open regulatory overhang
- !Stock has structurally underperformed peer Shriram Finance by a wide margin over 1, 3 and 5 years despite comparable headline growth
How sure are we about the data? · Moderate
Q1 FY27 PAT cross-checked across Business Standard, Investing.com and Sahi.com - consistent in direction (27-28% YoY growth) with minor crore-figure variance (Rs 5,986 cr vs Rs 6,081 cr) likely reflecting standalone vs consolidated or reporting-date differences. P/E (29.4x) and P/B (4.83x) sourced from a third-party aggregator at a slightly different price point than the verified last close; underlying book value and EPS not independently verified - check Screener for exact figures. Promoter pledge status (nil) relies on secondary shareholding aggregators, not a primary BSE/NSE filing - not fully verified. Full Q2 FY27 P&L (profit, margins, provisions) is not yet available ahead of the 19 Oct 2026 results.
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Ticker Tales is not a SEBI-registered investment adviser or research analyst. This report is for learning only and is not investment advice. Data as of 13 Oct 2026.