One of India’s leading non-banking financial companies (NBFCs), known for its robust retail lending, consumer finance, and digital-first approach, witnessed a sharp surge of over 5.8% in its stock price following the announcement of its stellar second-quarter results for the financial year 2025. The company, which specialises in consumer durables financing, personal loans, and SME lending, has maintained its strong market position with a significant increase in assets under management and improved asset quality metrics.
Stock Movement:
After announcing its quarterly results, Bajaj Finance Limited’s share has surged up by 5.84%. The stock opened at ₹6,605.75 and is currently trading at ₹7,065, with a high of ₹7,069 and a low of ₹6,601. The market capitalisation now stands at approximately ₹4.37 lakh crore.
Reason for Rise:
Bajaj Finance has faced challenges in maintaining consistent stock performance. Despite reporting a 27.7% year-on-year profit increase for Q2 FY24, concerns about rising credit costs and narrowing net interest margins have tempered investor enthusiasm. The stock has underperformed over the past year, dropping more than 10% and struggling to regain momentum due to higher operational expenses and a muted near-term growth outlook.
Q2 FY25 Result Walkthrough:
Coming into the financial analysis of Bajaj Fianace Limited, the company’s consolidated revenue from operations increased by 27.7 percent YOY, from Rs. 13,378.26 crore in Q2 FY24 to Rs. 17,090.27 crore in Q2 FY25, and up by 6.15 percent QoQ from Rs. 16,098.67 crore in Q1 FY24.
In Q2 FY25, Bajaj Fianace Limited’s consolidated net profit slightly increased by 13.03% YOY, reaching Rs. 4,013.74 crore compared to Rs. 3,550.80 crore during the same period last year. As compared to Q1 FY25, the net profit has increased by 2.60 percent, from Rs. 3,911.98 crore.
The basic earnings per share increased by 2.18% and stood at Rs 64.66 as against Rs 63.28 recorded in the previous quarter FY25.
Also read….
Target Price:
JPMorgan has kept its ‘Overweight’ rating on Bajaj Finance but cut the target price from Rs 8,000 to Rs 7,300, citing some pressure on credit quality in Q2. However, loan growth remains strong at 29% YoY.
Jefferies maintained its ‘Buy’ rating, lowering the target price from Rs 8,620 to Rs 8,400. The Q2 results met expectations, and earnings are expected to improve by FY26. Though credit costs are still high, they are likely to decrease. Asset growth remains steady with stable profit margins.
Company Profile:
Bajaj Finance Ltd. (BFL), headquartered in Pune, India, is a prominent non-banking financial company (NBFC). A subsidiary of Bajaj Finserv, it focuses on lending across retail, SMEs, and commercial sectors while also accepting deposits. BFL offers diverse financial services and has grown to become a key player in India’s financial ecosystem.
With a strong presence in both urban and rural areas, BFL serves over 69 million customers. Its extensive network supports personal loans, EMI financing, and wealth management, reflecting its significant reach and influence across India’s financial landscape.
Bajaj Finance operates in multiple segments, including consumer lending (personal loans, EMI cards), SME lending, and commercial financing. Additionally, it offers rural lending, public and corporate deposits, and wealth management services. This diversified portfolio allows it to cater to a wide range of financial needs across sectors.
Written By Fazal Ul Vahab
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
