Bajaj Finance reported strong Q1 FY27 results with net profit of ₹5,986 crore, marking a 27% year-on-year increase from ₹4,700 crore in the same period last year. The company's net interest income (NII) advanced 23% YoY to ₹12,571 crore during the quarter, compared with ₹10,228 crore in Q1 FY26. Assets under management (AUM) rose 24% YoY to ₹5,46,944 crore in Q1 FY27, as against ₹4,41,450 crore in the year-ago period. The Pune-based company's robust financial performance demonstrates continued growth momentum across key metrics.
Bajaj Finance shares fell as much as 5% to hit an intraday low on Thursday, September 24, after the company announced plans to seek shareholder approval for a potential capital raise. The stock was trading around ₹993.60 per equity share, reflecting a 4.75% decline at around 10:33 AM. The shares have lost 2% in the past week and 7% over the month, though they remain up more than 2% on a year-to-date basis. Despite the recent decline, the stock had previously hit a 52-week high of ₹1,176.40 on August 3, 2026, while touching a year's low of ₹787.90 on March 23, 2026. The company's total market capitalization stands at ₹6.19 lakh crore as of September 24, 2026.
The board of Bajaj Finance will convene on October 1, 2026 to deliberate on various strategic proposals, with the company announcing plans to seek shareholder approval for a potential capital raise. The meeting agenda includes consideration of fund raising initiatives through multiple financial instruments, with the company specifically stating that the board will meet to consider, inter alia, proposal for raising of funds through any or all of various methods including by way of preferential issue, qualified institutions placement, subject to such regulatory/statutory approvals as may be required, including approval of the shareholders of the Company. The fundraiser, if approved by the board, will be further subject to such regulatory and/or statutory approvals as may be required, including approval of the shareholders of the company.
The board will evaluate proposals for raising funds through preferential issue and qualified institutions placement (QIP), as reported by the regulatory filing. Global brokerage firm Jefferies has a 'Buy' recommendation on Bajaj Finance with a price target of ₹1,280 per share, citing the company's manageable leverage at 4.9 times with a healthy return on equity of 21%. Assuming Bajaj Finance raises around 10% of its FY28 estimated net worth, Jefferies estimates the fundraise could amount to around ₹15,000 crore. Such a fundraise could increase its FY28 estimated earnings per share by around 1% and book value per share by 7%, while return on equity could taper marginally.
Investment bank UBS has upgraded its recommendation to 'neutral' from 'sell' on the stock, citing potential benefits for private banks and large NBFCs with strong personal loan franchises. As per UBS, with gold prices stabilising and likely gold loan growth moderation, a key substitute for personal loans over past few years could lose some momentum. This development may benefit Bajaj Finance and other companies with robust personal loan portfolios, providing a positive backdrop for the company's planned capital raising efforts despite the recent market decline.
