Bajaj Finance Shares Jump 7% As Brokerages Cheer Strong Q1 Results

Shares of Bajaj Finance surged nearly 7% in morning trade on Friday after the non-banking finance company reported a stronger-than-expected June-quarter performance, prompting several brokerages to raise target prices and reaffirm their bullish stance.

The stock was trading at ₹1,124.90, up 6.78%, at around 11:10 am, making it the top gainer on the Nifty 50. The stock had ended almost unchanged in the previous session following the earnings announcement.

So far in 2026, Bajaj Finance shares have gained 8.7%, outperforming the Nifty 50, which has declined around 7% during the same period. The company commands a market capitalisation of about ₹6.59 lakh crore.

Q1 Earnings Beat Expectations

Bajaj Finance reported a 27% year-on-year rise in net profit to ₹5,986 crore for the June quarter, ahead of the CNBC-TV18 poll estimate of ₹5,850 crore.

Net interest income (NII) increased 23% to ₹12,571 crore, although it was marginally below the poll estimate of ₹13,102 crore.

Asset quality improved during the quarter, with gross NPA declining to 0.96% from 1.03% in March, while net NPA eased to 0.39% from 0.50%.

Brokerages Raise Target Prices

CLSA retained its Outperform rating and raised its target price to ₹1,300 per share, implying an upside of more than 23% from the previous close.

The brokerage said Bajaj Finance once again demonstrated its "Iron Man" credentials, with profit after tax exceeding expectations on the back of stronger-than-expected operating performance, higher pre-provision operating profit and lower credit costs.

CLSA highlighted the sharp improvement in asset quality as the key positive and believes the company can comfortably outperform its full-year credit cost guidance of 1.45%-1.6%. It also described the management's post-results commentary as encouraging.

Management Outlook Remains Positive

HSBC maintained its Buy rating and increased its target price to ₹1,270, calling the June-quarter performance exceptionally strong across key operating metrics.

The brokerage raised its estimates for assets under management growth, net interest margin and credit costs, resulting in earnings upgrades of 1-6% over FY27-FY29. It also expects the company to revisit its guidance after the September-quarter results as asset quality in personal and business loans continues to improve.

Meanwhile, Nomura reiterated its Buy rating with a target price of ₹1,140, saying the earnings beat was driven by healthy operating performance while asset quality remained robust.

The brokerage noted that management plans to monitor credit trends for another quarter before reviewing its guidance and expects the company's cost of funds to remain broadly stable with only a modest upward bias.