Bajaj Finance shares dropped nearly 7% in early trade on Tuesday, reacting sharply to the company’s September quarter (Q2FY26) results. While the lender showed steady growth, investors were disappointed by its lower AUM growth guidance and indications of rising asset stress. The stock declined 6.97% to Rs 1,009.75 around 9:39 am as the market absorbed the mixed news.
Why Bajaj Finance shares declines 7%
Bajaj Finance reported a profit after tax (PAT) of Rs 4,875 crore, a 22% increase from the previous year, but it fell short of market expectations of Rs 4,969 crore. Net interest income (NII) rose 22% to Rs 10,785 crore, while net total income grew 20% to Rs 13,170 crore. Pre-provision operating profit (PPOP) increased 21% to Rs 8,874 crore, showing strong operational efficiency.
However, management lowered its FY26 AUM growth guidance to 22–23% from the previous 24–25%, citing stress in the MSME and captive two- and three-wheeler segments. The company has become more cautious with lending to these areas.
Asset quality under pressure
Asset quality showed some decline in Q2. The gross NPA ratio rose to 1.24% from 1.06% a year earlier, while net NPA increased to 0.60% from 0.46%. Loan losses and provisions rose 19% year-on-year to Rs 2,269 crore, leading to annualized credit costs of 2.05% of average assets. The provision coverage ratio on Stage 3 assets stood at 52%, indicating a cautious approach to provisioning amid emerging stress.
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