Bajaj Finance hits new high on healthy outlook; zooms 30% thus far in CY25

S&P Global Ratings expects Bajaj Finance's financial performance to remain healthy amid good operating conditions; and expects it to maintain its healthy capital position over the next 2 years

Shares of Bajaj Finance hit a new high of Rs 8,873.60, gaining 2 per cent on the BSE in Wednesday’s intra-day trade on expectation of healthy earnings. The stock of the non banking finance company (NBFC) has surpassed its previous high of Rs 8,736 touched on February 27, 2025. 

 

Thus far in the calendar year 2025, Bajaj Finance outperformed the market by zooming 30 per cent. In comparison, the BSE Sensex is down 3.9 per cent during the same period.

 

Bajaj Finance is trading higher for the third straight day, surging 5 per cent so far in current week, after S&P Global Ratings, on March 17, 2025, revised the long-term rating outlook for the company from ‘Stable’ to ‘Positive’. 

 

 

The credit rating agency revised upwards Bajaj Finance’s standalone credit profile (SACP) from BBB- to BBB. The positive outlook on the company reflects that on the sovereign credit rating on India. The rating on the company is capped by the sovereign rating and will therefore move in tandem with that on the sovereign, the rating agency said.

 

Bajaj Finance’s outperformance was also triggered after Finance Minister Nirmala Sitharaman, in her Budget 2025 speech, announced the decision to raise the income tax exemption limit to Rs 12 lakh per year under the new tax regime. The change is expected to boost disposable income, stimulating consumption, analysts said.

 

Bajaj Finance is one of the largest NBFCs financing retail assets in India. It has a strong market position in financing for consumer durables and two- and three-wheelers, underpinning its reach in the Indian retail market. In addition, the company consistently maintains above-average profitability.

 

Meanwhile, S&P Global Ratings said it revised the long-term rating outlook on Bajaj Finance to positive from stable to reflect the rating agency’s view that the company will benefit from a strengthening regulatory environment, particularly for upper-layer fincos in India. Accordingly, the rating agency said it has revised upward the SACP by one notch to 'BBB' from 'BBB-'.

 

S&P Global Ratings expects Bajaj Finance's financial performance to remain healthy amid good operating conditions. The company's stable earnings and asset quality, and continued access to low-cost (or differentiated) funding will continue to support its credit profile. It also benefits from being part of the broader Bajaj group. As a result, the company has better funding access at a more competitive price than that of peers.

 

“We view Bajaj Finance's capital and earnings as strong, given our estimate that the company's pre-diversification RAC ratio will dip to below 15 per cent by fiscal 2026 (ending March 31) from 15.9 per cent as of March 31, 2024. This is because we expect the company to grow at a faster rate than the industry, at 25 per cent-27 per cent over the next two years,” S&P Global Ratings said in rationale.

 

The rating agency expects Bajaj Finance to maintain its strong market position and healthy capital position over the next two years. It also expects the company's liquidity and funding profiles to remain adequate over the period.