Bajaj Finance Q4FY26: Profit up 22%, stock up 4% and TPs rise

Stock reaction: gains despite a weak market

Bajaj Finance shares rose sharply in early trade after the company reported its Q4FY26 numbers after market hours on Wednesday. On the BSE, the stock gained 4.3% and hit an intra-day high of ₹975.5 per share. At 9:26 AM, it was trading 4.32% higher at ₹970.1 per share. The move stood out because the broader market was weak at the same time, with the BSE Sensex down 1.12% at 76,630.31. Another update during the session showed the stock trading higher at around ₹949.40 at 10:08 AM.

What drove the move: Q4FY26 profit and revenue growth

The buying interest followed a strong year-on-year improvement in profitability and revenue. On a consolidated basis, Bajaj Finance reported Q4 net profit of ₹5,553 crore, up 22% from ₹4,545.57 crore a year ago. Another report pegged the quarter’s consolidated net profit at ₹5,464.57 crore, also up 21.99% year-on-year. Revenue from operations for Q4FY26 came in at ₹21,605.79 crore, compared with ₹18,294.45 crore in the corresponding quarter last year, a rise of 18.1%.

Profit before tax: a faster jump than net profit

Beyond net profit, profit before tax (PBT) expanded at a faster pace. Bajaj Finance reported PBT of ₹7,409.84 crore in Q4FY26, up 31.21% year-on-year from ₹5,647.38 crore. The stronger PBT growth, alongside revenue expansion, helped reinforce the market’s view that the quarter was resilient on key operating metrics.

Operating metrics: AUM crosses ₹5 lakh crore

A key highlight cited by market commentary was the scale milestone in assets under management (AUM). Bajaj Finance’s AUM rose 22.4% year-on-year to about ₹5.1 lakh crore, crossing the ₹5 lakh crore mark. Another disclosed figure put AUM at ₹5.09 lakh crore as of March 2026, up from ₹4.16 lakh crore a year earlier, implying 22% growth. The company also reported that AUM increased by ₹25,498 crore during the quarter.

Business momentum: new loans and customer franchise

Loan activity remained strong, with new loans booked rising 20.5% to 12.89 million. The company’s customer franchise expanded to 119.33 million, indicating continued additions even as the credit environment remained a point of focus for investors. One datapoint flagged in the updates was that the deposit book declined 4% year-on-year.

Credit costs and guidance: what management indicated

Brokerage notes highlighted credit cost as an important driver of the quarter’s outcome and the outlook. Emkay Global Financial Services pointed to lower credit cost of 1.6% in the quarter and said management expects improvement based on better trends across the 3MOB, 6MOB, and 9MOB cohorts. The company guided for AUM growth of 22%-24%, with PAT expected to grow slightly ahead of AUM. Credit cost guidance was revised to 1.45%-1.6% from 1.65%-1.75%, with the change attributed to a presentation change.

Brokerage calls: targets move up, ratings mixed

Brokerage updates after the results showed a broadly constructive stance, with several target price hikes even where ratings stayed cautious. Emkay Global maintained a ‘Reduce’ rating but raised its target to ₹950 from ₹900, citing a good quarter on growth, profitability and credit cost. Motilal Oswal Financial Services retained ‘Neutral’ and raised its target to ₹1,000 from ₹900. JM Financial Institutional Securities reiterated ‘Buy’ and raised its target to ₹1,080 from ₹985, describing the quarter as steady with PAT broadly in line.

Global houses: Jefferies and Morgan Stanley stay positive

Among global brokerages, Jefferies maintained a ‘Buy’ rating with a target price of ₹1,210, indicating potential upside of 30% as stated in the report. Jefferies said it marginally tweaked estimates after factoring in slightly higher operating expenses due to investments in gold loan distribution. Morgan Stanley maintained an overweight rating and raised its target price to ₹1,120 from ₹1,090, implying an upside of 20% from current levels, as cited. HSBC, Nomura and JPMorgan also remained positive in their stated stances, with target prices of ₹1,100, ₹1,140 and ₹1,080 respectively, while Macquarie remained the outlier with an ‘Underperform’ rating and a target price of ₹860.

Key numbers at a glance

Why this matters for investors

The results and the subsequent price action show that investors are currently rewarding visibility on growth and credit costs. AUM growth at around 22% and the crossing of ₹5 lakh crore in managed assets are scale markers that brokerages often use to frame medium-term growth capacity. At the same time, the range of ratings, including at least one ‘Reduce’ and one ‘Underperform’, suggests that valuation comfort and credit-cost risk remain central to the debate. Target prices in the updates ranged from ₹860 on the bearish end to ₹1,210 on the bullish end, indicating a wide dispersion in how analysts are pricing the same operating narrative.

Conclusion: strong quarter, focus shifts to execution and costs

Bajaj Finance’s Q4FY26 numbers showed year-on-year gains in profit, revenue and PBT, alongside AUM crossing ₹5 lakh crore and strong growth in new loans booked. The stock’s over-4% rise came even as the Sensex was down, reflecting a results-led reaction. Brokerages largely raised target prices, while commentary remained anchored on AUM growth guidance of 22%-24% and the revised credit cost guidance of 1.45%-1.6%. The next set of updates investors will track will be follow-through on credit cost trends and how incremental investments, including in gold loan distribution, flow into operating expenses.