Bajaj Finance shares surge 6% to all-time high after upbeat Q3 earnings

Bajaj Finance shares surge 6% to all-time high after upbeat Q3 earnings

Bajaj Finance Hits Record High on Strong Q3 Earnings

Shares of Bajaj Finance soared 6% to an all-time high of ₹8,250.65 on January 30, fueled by the company’s impressive Q3 performance. The non-bank lender’s solid results have caught the attention of top brokerages, with many projecting a 22% profit growth in FY26 and a 25% increase in AUM. These optimistic forecasts have further boosted investor confidence, driving strong buying momentum in the stock.

As of 09:36 AM, shares of Bajaj Finance were trading at ₹8,157.50 on the NSE.

The company reported an 18% year-on-year rise in consolidated net profit for Q3 FY25, reaching ₹4,308 crore—well ahead of analyst expectations. A Bloomberg poll had projected ₹4,136 crore, but Bajaj Finance exceeded estimates thanks to a significant increase in assets under management (AUM).

Net interest income (NII) for the quarter saw a 23% rise, coming in at ₹9,382 crore compared to ₹7,655 crore in Q3 FY24. This was driven by a robust 28% jump in AUM, which stood at ₹3.98 lakh crore as of December 31, 2024, up from ₹3.11 lakh crore a year earlier.

Brokerage Reactions on Bajaj Finance

  • Morgan Stanley remains bullish with an ‘Overweight’ rating and has raised its target price to ₹9,300 per share. The firm highlighted that lower stressed asset formation from Q2 continued in Q3, and management expects even lower credit costs in Q4. With an expected 25% EPS growth in FY26, the stock remains a strong bet.
  • Jefferies has issued a ‘Buy’ call, setting a target price of ₹9,270 per share. The brokerage noted that asset quality trends are stabilizing, and credit costs are likely to decline from Q4FY25. Additionally, the CEO succession plan looks smooth, with the Deputy CEO expected to step up while Rajeev Jain stays actively involved.
  • Nomura also upgraded its target price to ₹9,000, maintaining a ‘Buy’ rating. The firm pointed out that Bajaj Finance delivered steady Q3 results, with an 18% YoY and 7% QoQ profit growth, driven by strong loan expansion. Profit exceeded estimates due to lower credit costs (2.1%), while stable operating profits helped maintain a solid RoA of 4% and RoE of 19%.
  • HSBC has upgraded its target price to ₹8,900 per share with a ‘Buy’ rating. The firm emphasized that Bajaj Finance delivered across all key metrics in Q3, with strong AUM growth and better-than-expected asset quality. While HSBC slightly adjusted its earnings estimates, it believes Bajaj Finance deserves a premium valuation over peers, raising its price-to-book value (P/BV) multiple to 5x for FY26.

With analysts backing the stock and Bajaj Finance continuing to post strong numbers, investor sentiment remains positive. The company’s focus on growth, stable credit quality, and smooth leadership transition further strengthen its long-term outlook.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top