Bajaj Finance shares surged to an all-time high of ₹1,127 on Friday, jumping approximately 7% as investors responded positively to the company's robust first-quarter performance. The non-bank lender's shares reached this milestone after delivering results that beat analyst estimates across multiple metrics. At least five brokerages raised their target prices following the company's strong quarterly performance, reflecting renewed confidence in the NBFC's growth trajectory and operational efficiency.
Both Bajaj Finance and Shriram Finance delivered robust loan growth in the first quarter of FY27, defying typical seasonal trends. According to reports from The Financial Express, the June quarter is traditionally a 'slack' season for credit, with individuals and companies still evaluating financial objectives for the new financial year. Despite this challenging environment, both NBFCs achieved double-digit loan growth driven by higher margin retail loans including gold loans, passenger vehicle loans, and consumer loans.
As per Informist Media, Bajaj Finance reported a consolidated net profit of ₹59.86 billion for Q1 FY27, representing a 27% year-on-year increase and marginally exceeding analyst estimates of ₹58.71 billion. The company's net interest income grew 23% to ₹125.71 billion, while total income increased 20% to ₹231.66 billion. The results include earnings from subsidiaries Bajaj Housing Finance Ltd. and Bajaj Financial Securities Ltd., along with associates. Assets under management expanded 24% to ₹5.47 trillion as of June 30, with AUM increasing by ₹369.69 billion during the quarter.
According to Informist Media, Bajaj Finance booked 16.13 million new loans in Q1, up from 13.49 million a year ago, while the customer franchise reached 124.43 million as of June 30, growing 17% year-on-year. The company added 7,400 distribution points during the quarter, bringing geographic presence to 4,073 locations with active distribution points exceeding 250,000. Bajaj Finance plans to open 150-175 new locations in FY27 and expects to disburse 60-62 million new loans for the full year. The company's deposit book stood at ₹685.34 billion as of June 30, contributing 15% of consolidated borrowings.
As reported by Informist Media, Bajaj Finance's gross NPA ratio improved to 0.96% from 1.03% a year ago, while net NPA ratio reduced to 0.39% from 0.50% a year earlier. The provisioning coverage ratio on stage 3 assets was 60% as of June 30. Loan losses and provisions for Q1 were ₹19.93 billion, slightly higher than ₹19.69 billion a year ago, though excluding prudent management and macroeconomic provisions of ₹2.96 billion, loan losses were down 14% year-on-year. The cost of funds was 7.40% in April-June, improving 1 basis point from the previous quarter.
