Bajaj Finance Shares Sink 6% as Profit Booking Creeps in After Q4 Earnings but Brokerages Stand Bullish

Shares of Bajaj Finance sunk nearly 6% in trade on April 30 as investors rushed to book profits off the counter after the company released its earnings for the March quarter.

Bajaj Finance has been the best performing stock on the Nifty 50 in 2025 thus far, delivering returns of over 30%, giving investors plenty headroom to cash in profits.

Alongside its quarterly numbers, Bajaj Finance also announced a slew of rewards for its shareholders. The non-bank finance company’s board greenlit a four-for-one bonus issue and also cleared the way for a one-for-one stock split. Bajaj Finance had last split its shares in 2016.

On top of that, the board also approved the highest-ever dividend payout by the company, at Rs 44 per share as a final dividend for FY25, and a special dividend of Rs 12 per share, taking the total to Rs 56 per share. The special dividend follows a one-time gain from the partial stake sale in its subsidiary, Bajaj Housing Finance, through its IPO last year.

Q4 Numbers Hold Steady

Bajaj Finance continued to deliver steady growth in the fourth quarter of FY25 as well, even though it slightly lagged the Street’s expectations for its consolidated net profit and net interest income.

Despite that, the company managed to deliver double-digit on year growth on both the parameters. The company’s consolidated net profit came at Rs 4,545.6 crore for the March quarter, up 19% on year. The strong profit growth was carried by healthy loan growth, improved margins, and stable asset quality.

Net interest income (NII) also grew 22% on year to Rs 9,807.1 crore.

The NBFC major reported healthier asset quality in Q4, as both gross and net NPAs declined to 0.96% and 0.44% respectively, while its assets under management jumped 26% year-on-year to Rs 4.17 lakh crore, showcasing robust credit demand.

Brokerages Cheer the Flight

Banking on the strong growth prospects for Bajaj Finance, most brokerages across the Street hold a bullish view for the NBFC major. Global brokerage HSBC holds an upbeat stance on Bajaj Finance, retaining its ‘buy’ call on the stock for the stock with a bullish price target of Rs 10,800—the highest amongst peers. HSBC further noted that Bajaj Finance’s earnings quality ranks just behind ICICI Bank among its NBFC universe, and it sees a strong 25% EPS CAGR over FY25–28 for the lender. While it trimmed FY26–27 earnings estimates by 2% due to slower AUM and fee income growth, HSBC believes valuation premiums are justified by the company’s profitability and long-term potential.

Following suit, Jefferies also echoed a positive stance, retaining its ‘buy’ call with a Rs 10,440 target. Jefferies noted that while the entry of the new CEO Anup Saha resets near-term expectations slightly lower, the leadership transition remains credible. Despite that, Jefferies still flagged moderating credit costs and solid long-term RoE prospects as encouraging signs.

In contrast, Citi downgraded the stock to ‘neutral’, citing rich valuations after Bajaj Finance outperformed the Bank Nifty by 23% in 2025 thus far. To that effect, the brokerage cut its target price to Rs 9,830 from Rs 10,200, attributing a decline in net interest margin (NIM), a 2.3% credit cost (including ECL provisions), and subdued fee income guidance as key concerns. Citi also trimmed FY26–27 earnings forecasts for Bajaj Finance by 3%.