Archive · 25 Jul 2025
Bajaj Finance Shares Plunge Despite Strong Q1 Performance
Bajaj Finance did really well in the last few months, making lots of money and getting new customers.
However, investors were worried.
Even though the company is growing and making lots of money, people were concerned that some of the loans might not be paid back.
More people are having trouble paying back their loans.
This made the company's stock price go down, even though their profits were good.
Investors are watching closely to see if the company can keep its loans safe.
Bajaj Finance shares dropped over 6% despite strong Q1FY26 results.
The drop was triggered by investor concerns about asset quality.
Gross NPA rose to 1.03%, and net NPA increased to 0.50%.
Loan losses and provisions jumped 26% YoY to Rs 2,120 crore.
Analysts are watching asset quality closely, particularly in unsecured lending.
- Who
- Investors in Bajaj Finance.
- What
- Bajaj Finance shares fell due to asset quality concerns, despite strong financial results.
- When
- During early trade on Friday, due to Q1FY26 results.
- Where
- BSE, India
- Why
- Investors are concerned about rising credit stress and provisioning levels, leading to fears over asset quality.
Market's View
Company's View
Performance vs. Asset Quality
Market's View
Asset quality deterioration (rising NPAs and provisions) overshadows strong growth figures.
Company's View
Positive YoY growth in metrics such as net profit, total income, and loan disbursals.
- Consolidated Net Profit
- Rs 4,765 crore (up 22% YoY)
- Net Interest Income
- Rs 10,227 crore (up 22% YoY)
- Total Income
- Rs 12,610 crore (up 21% YoY)
- Loan Disbursals
- 13.49 million new loans (up 23% YoY)
- Gross NPA
- 1.03%
- Net NPA
- 0.50%
- Loan Losses & Provisions
- Rs 2,120 crore (up 26% YoY)
- Capital Adequacy Ratio
- 21.96%