Bajaj Finance shares slide 6% after Q1 show fails to cheer D-Street

Shares of Bajaj Finance tumbled 6.3% on Friday to an intraday low of Rs 898.10 on the BSE even after the company reported a 22% year-on-year (YoY) rise in consolidated net profit to Rs 4,765 crore for the June quarter.

Net interest income (NII) also grew 22% YoY to Rs 10,227 crore, driven by robust loan growth and an expanding customer base.

The company booked 13.49 million new loans during the quarter, a 23% increase over Q1 FY25. Its customer franchise rose 21% YoY to 10.6 crore, with 4.69 million new customers added in the quarter.


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Assets under management (AUM) surged 25% YoY to Rs 4.41 lakh crore from Rs 3.54 lakh crore. Sequentially, AUM increased by Rs 24,789 crore.

Net total income rose 21% to Rs 12,610 crore, while pre-provisioning operating profit grew 22% to Rs 8,487 crore.

Loan losses and provisions increased 26% to Rs 2,120 crore, compared to Rs 1,685 crore in Q1 FY25. The annualized credit cost for the quarter stood at 2.02% of average assets under finance.

Asset quality weakened slightly, with gross non-performing assets (GNPA) rising to 1.03% from 0.86% a year ago, and net NPA climbing to 0.50% from 0.38%. However, the company maintained a healthy provision coverage ratio (PCR) of 52% on Stage 3 assets.

Capital adequacy remains robust, with the CRAR at 21.96%, including Tier-I capital of 21.19%.

Bajaj Finance’s consistent growth across loan volumes, interest income, and customer additions reinforces its leadership in the NBFC space. However, the uptick in asset quality stress and higher provisioning will be key monitorables in the coming quarters.

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