Bajaj Finance Share Price Hits 52-Week High Post Q1 Result | What’s Next For Investors? Check TP

Bajaj Finance Q1 Result Review

The broad-based growth, improved asset quality and resilient margins indicate a structural earnings acceleration for the company, noted Motilal Oswal in its report. The all-round strong performance was driven by healthy performance across growth, asset quality, credit costs and margins.

"Borrowings costs remained stable despite a volatile macroeconomic environment. Growth remained broadbased across segments, while asset quality continued to improve, supported by strong vintage performance and lower credit costs.

Broad-based growth, improving asset quality and resilient margins underpin a structural earnings acceleration," noted Motilal Oswal.

The company sees a strong long-term opportunity in India as it remained focus on reinvesting in existing businesses while exploring two new business lines targeted for launch by January-February 2027.

Bajaj Finance Share Price Recommendation

Motilal Oswal maintained a 'Buy' rating for the stock and revised its target price to Rs 1,300. "We raise our FY27/FY28 EPS estimates by 4%/2% to factor in higher AUM growth and lower credit costs. We model PAT CAGR of ~30% over FY26-FY28E and RoA/RoE of 4.2%/21.4% in FY28E. We upgrade our rating on BAF to BUY with a TP of INR1,300 (premised on 4.8x FY28E BVPS)."

Bajaj Finance Q1 Result Recap

The NBFC reported a 23% year-on-year increase in its net interest income (NII) for the quarter to Rs 12,571 crore. Net profit stood at Rs 5,986 crore, which is 27% higher than the same quarter in previous financial year.

Its non performing asset (NPA) at the end of the June quarter stood at 0.96% from 1.03% in March quarter. The net NPA improved to 0.39% from 0.5% in the previous quarter. Loan losses also came in at Rs 1,993 crore.

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