Bajaj Finance Tumbles 5.5% Pre-Market Despite Strong Q1 Growth

Market Snapshot

Shares of Bajaj Finance fell 5.5% in pre-open trade on July 25, reacting to its Q1 FY26 earnings. The decline comes despite a solid performance across key financial metrics, suggesting investor caution around asset quality and provisioning trends.

Key Highlights from Q1 FY26

• Net profit rose 22% year-on-year to Rs 4,765 crore

• Net interest income climbed 22% to Rs 10,227 crore

• Assets under management surged 25% to Rs 4.41 lakh crore

• 13.49 million new loans booked; customer base expanded by 4.69 million

Operational and Risk Metrics

• Loan losses and provisions increased 26% to Rs 2,120 crore

• Gross NPA rose to 1.03% from 0.86%; Net NPA at 0.50%

• Capital adequacy ratio remained strong at 21.96%

Investor Sentiment

Despite robust growth, the uptick in NPAs and provisioning may have triggered profit-booking. Analysts are watching credit cost trends and asset quality commentary closely.

Source: Economic Times, ICICIdirect, Business Standard