Bajaj Finance Shares: Q3 Profit Falls 6% YoY Even as NII Jumps 21%; Stock in Spotlight

Key Highlights from Bajaj Finance Q3 FY26 Results

Bajaj Finance shares remained in focus after the company reported its Q3 FY26 earnings, showing a mixed performance. While consolidated net profit declined 6% year-on-year (YoY) to ₹3,977.85 crore, net interest income (NII) posted a strong growth of 21%, reflecting healthy core lending momentum. The earnings outcome triggered short-term volatility in the stock, with investors closely tracking asset quality, provisioning trends, and management guidance on growth and credit costs.

Despite the profit dip, brokerage firms largely retained a positive outlook, citing stable asset quality, improving operational metrics, and robust long-term growth prospects.

Bajaj Finance Shares in Spotlight

Bajaj Finance shares slipped around 2% during intraday trade, touching a low of ₹943.45 per share on the BSE. At 9:22 AM, the stock was trading 1.1% lower at ₹954.05, underperforming the broader market, as the BSE Sensex declined marginally by 0.10% to 83,654.19.

Later in the session, the stock recovered part of its losses and traded higher, reflecting cautious but stable investor sentiment. The share price stood at ₹969.80, gaining 0.56%, after opening at ₹965, hitting a high of ₹972.60, and a low of ₹944.15. The company’s market capitalisation stood at approximately ₹60.10 lakh crore.

Although the stock remains below its 52-week high of ₹1,102.50, it continues to trade comfortably above its 52-week low of ₹802.50, indicating sustained long-term investor confidence.

Stock Holds Above 200-Day Moving Average

As of February 3, 2026, Bajaj Finance was among 35 stocks in the Nifty500 index that closed above their 200-day moving average (DMA). Notably, the stock featured in the top 14 performers that gained more than 5%, according to StockEdge.com’s technical scan data.

The 200-day simple moving average (SMA) is a widely followed indicator to assess long-term price trends. Stocks trading above this level are generally considered to be in a broader uptrend, highlighting Bajaj Finance’s strong technical positioning despite near-term volatility.

Bajaj Finance Q3 FY26 Financial Performance Overview

Bajaj Finance reported a 6.3% YoY decline in consolidated net profit at ₹3,978 crore, compared to ₹4,247 crore recorded in the same quarter of the previous financial year. The decline was primarily attributed to higher provisioning and one-time exceptional expenses.

In contrast, net interest income (NII) surged 21% YoY to ₹11,318 crore, reflecting steady loan book expansion and improved interest income generation. This robust NII growth underscores the company’s strong core operating performance.

Higher Provisions and One-Time Costs Impact Profitability

The quarter was impacted by elevated provisioning of ₹1,671 crore and a one-time exceptional cost of ₹265 crore linked to the implementation of new labour codes. These additional expenses weighed on overall profitability, leading to the decline in net profit.

Management indicated that higher provisioning was part of a prudent approach to maintain balance sheet strength amid evolving credit conditions. Analysts believe that while near-term earnings may remain under pressure, the long-term risk profile of the loan book is expected to improve.

Stable Asset Quality Supports Long-Term Outlook

Asset quality metrics remained largely stable during the quarter. Gross non-performing assets (NPA) stood at 1.21%, while net NPA was reported at 0.47% as of December 31, 2025. Sequential improvements were observed in asset quality trends, with gross and net Stage 3 assets showing marginal quarter-on-quarter improvement.

Additionally, net slippages and write-offs declined sharply, reflecting stronger collection efficiency and better credit monitoring. These trends reinforced investor confidence in the company’s risk management framework.

Brokerage Views: Optimism Intact Despite Earnings Pressure

Brokerages maintained a largely positive stance on Bajaj Finance, highlighting improving operational metrics and sustained growth visibility.

Nomura revised its FY26 net profit estimates downward by 3% due to higher credit cost assumptions and raised long-term provisioning expectations. The brokerage adjusted its valuation model, implying a December 2027 price-to-book (P/B) multiple of 4.7x and a one-year forward P/B of 4.5x. Despite these revisions, Nomura remains optimistic about Bajaj Finance’s long-term growth trajectory.

JM Financial Institutional Securities upgraded the stock to Buy from Add, while raising its target price to ₹1,125 from ₹1,100. The brokerage highlighted encouraging asset quality trends, declining slippages, and management guidance projecting 22% assets under management (AUM) growth for FY26. Credit costs are expected to moderate to 1.65–1.75% over FY27, despite higher provisioning buffers.

Growth Outlook: Strong AUM Expansion and Stable Credit Trends

Management reiterated its confidence in sustaining strong business momentum, guided by consistent AUM growth, expanding product offerings, and improving asset quality. With digital expansion, customer base growth, and enhanced risk analytics, Bajaj Finance remains well-positioned to capture retail lending opportunities.

While near-term earnings may reflect provisioning pressures, analysts expect normalized profitability as credit costs stabilize and operating leverage improves.

FAQs

Disclaimer

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.