Mumbai: Shares of Bajaj Finance Ltd surged to an all-time high, rising nearly 7% on Thursday after the non-banking financial company (NBFC) reported better-than-expected results for the first quarter of FY27. The strong earnings prompted several brokerages to raise their target prices, citing robust loan growth, improving asset quality and healthy business momentum.

The stock emerged as one of the top gainers on the Nifty 50, reflecting investor confidence in the company’s long-term growth outlook.

Stock climbs to record high

Following the earnings announcement, Bajaj Finance shares jumped as much as 7.16% during intraday trade, touching a fresh lifetime high before ending the session with strong gains.

The rally came after the company reported quarterly numbers that exceeded market expectations, encouraging analysts to upgrade their earnings estimates and price targets.

Strong first-quarter performance

Bajaj Finance reported a 28% year-on-year increase in net profit to ₹6,081 crore for the June quarter.

Net interest income (NII) also rose 23% year-on-year, supported by healthy loan disbursements and sustained customer demand across lending segments. The performance surpassed analyst expectations despite higher funding costs.

Loan growth remains robust

Brokerages highlighted the company’s strong loan growth as one of the biggest positives from the quarterly results.

Assets under management (AUM) expanded at their fastest pace in three quarters, driven by healthy demand in consumer finance, gold loans and other retail lending products. Analysts believe the diversified lending portfolio continues to support sustainable growth.

Asset quality improves

Apart from earnings growth, analysts were encouraged by improvements in the company’s asset quality.

The net slippage ratio declined to around 1.2%, while gross Stage-2 assets fell to their lowest level since the COVID-19 pandemic. The improving credit profile strengthened confidence in the company’s risk management and future profitability.

Brokerages raise target prices

Following the strong quarterly performance, at least six brokerages increased their target prices for Bajaj Finance.

Brokerages including Nomura, Nuvama, CLSA, UBS and Motilal Oswal maintained positive recommendations, citing accelerating business growth, resilient margins and improving asset quality as key reasons for their optimism.

Positive management commentary

Investor sentiment was further supported by management’s optimistic outlook.

The company indicated that demand across lending segments remains healthy and expressed confidence in sustaining growth while maintaining prudent credit standards. Analysts noted that Bajaj Finance continues to balance expansion with disciplined risk management.

Outlook remains strong

Market experts believe Bajaj Finance remains well-positioned to benefit from India’s expanding retail credit market.

Its diversified lending portfolio, digital capabilities, strong customer acquisition and improving asset quality are expected to support earnings growth in the coming quarters.

Conclusion

Bajaj Finance’s record share price reflects growing investor confidence following another strong quarterly performance. With higher profits, healthy loan growth, improving asset quality and bullish brokerage upgrades, the NBFC continues to reinforce its position as one of India’s strongest financial services companies.