Bajaj Finance shares plunged 7.65 per cent to ₹1,002 on Tuesday morning, dragging parent Bajaj Finserv down 7.58 per cent to ₹1,957.80, after the lender trimmed its annual growth forecast citing stress in key lending segments. The stock traded near its lower circuit with heavy sell-side pressure, as 9.64 lakh shares awaited execution against 6.37 lakh buy orders by 11:43 am.
JM Financial downgraded the stock to ‘ADD’ from a higher rating, slashing the target price to ₹1,140, citing elevated credit costs and slower growth momentum. The brokerage cut its earnings estimates by 2-3 per cent for FY26-27 following management’s revision of AUM growth guidance to 22-23 per cent from 24-25 per cent. Motilal Oswal maintained its ‘Neutral’ stance with a ₹1,160 target, highlighting limited upside catalysts despite healthy earnings trajectory.
However, global brokerages remained constructive. HSBC, Jefferies, Morgan Stanley, and CLSA retained ‘Buy’ or ‘Overweight’ ratings with target prices ranging from ₹1,195 to ₹1,270, suggesting potential upside of 19-27 per cent from current levels.
The selloff followed Bajaj Finance’s Q2FY26 results where consolidated profit rose 23 per cent year-on-year to ₹4,948 crore. While earnings met expectations, gross Stage 3 assets climbed 21 basis points quarter-on-quarter to 1.24 per cent, driven by stress in MSME and captive two-wheeler/three-wheeler segments. Management warned that net interest margins would remain flat rather than expand, as cost benefits get passed to customers.
Published on November 11, 2025
