Bajaj Finance shares gain 3% on strong Q1 growth in new loans and AUM

Bajaj Finance shares rose over 3 per cent after the NBFC reported growth in new loans and assets under management

Shares of Bajaj Finance rose over 3 per cent on Friday after the non-banking financial company reported growth across key operational metrics in the first quarter, including new loans and assets under management. 

 

The lender's stock rose as much as 3.36 per cent during the day to ₹940.7 per share, the biggest intraday gain since June 9 this year. The stock pared gains to trade 2.5 per cent higher at ₹933.4 apiece, compared to a 0.03 per cent advance in Nifty 50 as of 10:43 AM. 

 

Shares of the company snapped a two-day losing streak and currently trade at 3.3 times the average 30-day trading volume, according to Bloomberg. The counter has risen 36 per cent this year, compared to a 7.5 per cent advance in the benchmark Nifty 50. Bajaj Finance has a total market capitalisation of ₹5.7 trillion. 

 

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Bajaj Finance Q1 business update

The NBFC reported assets under management (AUM) grew 25 per cent year-on-year (Y-o-Y) to approximately ₹4.41 lakh crore, compared to ₹3.54 lakh crore as of June 30, 2024. On a sequential basis, AUM increased by ₹24,750 crore in the June quarter alone, according to an exchange filing on Thursday. 

 

Similarly, in Q1FY26, its customer franchise increased by 4.69 million to 106.51 million. In the corresponding period last year (Q1FY25), its customer franchise stood at 88.11 million. New loans booked during the quarter rose 23 per cent Y-o-Y to 13.49 million, compared to 10.97 million in Q1 FY25, reflecting continued demand across retail lending segments.

 

Bajaj Finance also saw healthy growth in its deposit franchise. The deposit book rose 15 per cent year-on-year to approximately ₹72,100 crore, up from ₹62,774 crore a year ago. 

Bajaj Finance FY26 guidance 

In its Q4 update in April, Bajaj Finance revised its AUM growth guidance to 24-25 per cent for FY26, compared to 25-27 per cent projected earlier. The company also lowered the return on equity (RoE) guidance to 19-20 per cent compared to 21-23 per cent earlier.

 

The NBFC made the revisions despite expecting stable net interest margin (NIM), cost of finance easing by 10-15 basis points (bps), and improvement in cost-to-income (C/I) ratio by 40-50 bps in FY26. It, however, guided for a lower growth in fee income at 13-15 per cent and credit costs in the range of 1.85-1.95 per cent.