11 hrs ago
Bajaj Finance Shares Rise as AUM Growth Hits Seven-Quarter High
Bajaj Finance lends money to people and businesses.
In the September quarter, the total amount it managed in loans grew faster than it had in several quarters.
More customers joined, although the number of new loans grew more slowly than before.
Jefferies said the comparison was affected by a strong year-ago quarter and the timing of festivals.
Motilal Oswal expects the company to report higher profits for the quarter.
Both brokerages remain positive about its prospects.
Jefferies expects its loan book to keep growing over the next few years.
Motilal Oswal also said investors should watch whether rural borrowers can keep up with repayments.
Bajaj Finance shares rose 4.28% to Rs 988.85 in morning trade on October 5, 2026.
September-end assets under management reached Rs 5.85 lakh crore, up 26.5% year-on-year and 6.9% sequentially.
New loan bookings grew about 11% year-on-year, slowing from 20% in the June quarter; Jefferies cited an unusually strong year-ago comparison and festive-season timing.
Motilal Oswal estimates September-quarter net profit of Rs 6,372 crore, up 28.8% year-on-year; Jefferies retained its Buy rating and Rs 1,280 target price.
Jefferies projects 23% annual AUM growth through FY29; Motilal Oswal flagged asset quality as a monitorable amid potential rural cash-flow pressures.
- Who
- Bajaj Finance, with views from Motilal Oswal Financial Services and Jefferies.
- What
- Shares rose as the September-quarter update showed accelerated AUM growth, while new loan bookings grew more slowly.
- Where
- India; the article reports trading in Bajaj Finance shares but gives no more specific location.
- When
- October 5, 2026; the update covered the quarter ending in September.
- Why
- The AUM growth update and positive brokerage outlook supported the shares; the article does not identify a single definitive cause for the price rise.
Growth and outlook
Risks and cautions
Loan growth
Growth and outlook
Motilal Oswal and Jefferies highlighted accelerated AUM growth, expanding customer numbers and an encouraging earnings outlook.
Risks and cautions
New loan bookings grew about 11% year-on-year, down from 20% in the June quarter; Jefferies noted the slower pace while attributing part of it to festive timing and a high comparison base.
Asset quality and expansion
Growth and outlook
Motilal Oswal said asset quality was stable across several lending segments, supporting the earnings outlook.
Risks and cautions
Motilal Oswal warned that asset quality should be monitored in the second half of FY27, as weak monsoons and El Niño conditions could affect rural cash flows and repayment capacity.
Key facts
- Share price move
- Up 4.28% to Rs 988.85 in morning trade on October 5, 2026.
- September-end AUM
- Rs 5.85 lakh crore; Motilal Oswal reported 26.5% year-on-year growth and 6.9% sequential growth.
- New loans booked
- 13.45 million during the quarter; year-on-year growth was about 11%, according to the article.
- Customer franchise
- Jefferies said 4.4 million customers were added, bringing the total to 129 million.
- Deposit book
- Rs 69,800 crore.
- Motilal Oswal profit estimate
- September-quarter net profit of Rs 6,372 crore, up 28.8% year-on-year.
- Jefferies rating and target
- Buy rating and Rs 1,280 target price.
- Jefferies AUM forecast
- 23% annual growth projected for FY27, FY28 and FY29.
Quotes
Prakhar Sharma and Vinayak Agarwal
Equity analysts at Jefferies
“Bajaj Finance’s pre-quarter release for September quarter shows an uptick in AUM growth to 26% YoY vs. 24% in June quarter, highest in 7 qtrs.”
financialexpress.com
“Bajaj Finance will seek shareholder approval to raise capital.”
financialexpress.com
Motilal Oswal Financial Services
Brokerage covering non-bank finance companies
“Earnings to remain healthy: For our NBFC coverage universe, we estimate ~20%/18% YoY growth in NII/PPoP and ~24% YoY growth in PAT in 2QFY27.”
financialexpress.com
Sources
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