Bajaj Finance shares edge up despite Q3 profit dip; brokerages stay largely bullish; check targets

Bajaj Finance shares traded higher on Wednesday despite a year-on-year fall in quarterly profit. The stock was at Rs 969.80, up Rs 5.40 or 0.56 per cent. It opened at Rs 965, hit a high of Rs 972.60 and a low of Rs 944.15. The market capitalisation stood at about Rs 60.10 lakh crore. The stock is still below its 52-week high of Rs 1,102.50 and above the 52-week low of Rs 802.50.

Q3 results snapshot

The lender reported a 6.3 per cent fall in consolidated net profit to Rs 3,978 crore from Rs 4,247 crore a year ago. Net interest income rose 21 per cent to Rs 11,318 crore. The quarter included a one-time cost of Rs 265 crore linked to new labour codes. Asset quality stayed stable, with gross NPA at 1.21 per cent and net NPA at 0.47 per cent as of December 31.

Why profit fell

Higher provisions and one-off charges weighed on reported earnings. Management had flagged moderation in growth for some books, including two-wheeler and SME loans, while focusing on balance sheet strength.

Bajaj Finance share price target 2026

JPMorgan upgraded the stock to Overweight from Neutral and raised the target to Rs 1,150. It cited improving asset quality, valuations near one standard deviation below long-term averages after de-rating, and a normalising trend in asset quality. It expects recurring PPOP and PAT CAGR of about 22 per cent and 24 per cent over FY26–28.

Nomura maintained Buy with a marginal target cut to Rs 1,195. It revised credit loss assumptions due to higher competition and customer leverage, expects MSME growth to recover in two to three quarters, and sees FY26 AUM growth at about 22 per cent.

Morgan Stanley maintained Overweight with a target of Rs 1,195. It expects credit costs to fall sharply as new stressed loans decline, supporting stronger credit growth. Underlying EPS forecasts remain broadly unchanged, with a 25 per cent-plus CAGR over FY26–28.

CLSA maintained Accumulate with a target of Rs 1,200. It said PPOP was in line, credit costs were higher due to a one-time extra provision, and net slippages improved. AUM growth moderated to 22 per cent, as guided. NIM stayed steady at about 9.6 per cent.

Bernstein maintained Underperform with a target of Rs 750. It flagged a sharp rise in provisions to restore coverage ratios, though it acknowledged stable asset quality metrics and expects credit costs to moderate after the clean-up.

Jefferies maintained Buy and raised conviction with a target of Rs 1,270. It said adjusted for one-offs, profit rose 23 per cent year on year. It expects improving asset quality and credit costs to support a 24 per cent profit CAGR over FY27–28, keeping the stock among top picks.