Bajaj Finance rises after Q2 business update

The business update showed Bajaj Finance’s customer base rose to 128.85 million, up 4.42 million from the June quarter and well above 110.64 million a year earlier. New loans stood at 13.45 million in the quarter, up 11% from a year ago, while assets under management climbed to ₹5.84 lakh crore from ₹4.62 lakh crore last year. The company also ended the period with a deposit book of ₹69,750 crore.

JPMorgan kept its overweight rating and lifted its target to ₹1,310 from ₹1,295, saying growth looks broad-based across segments and could stay strong in coming quarters. In other words, this was not a one-off beat driven by a single product line; it looked like the kind of expansion that can support earnings compounding over several years.

That is the real story for long-term investors. Bajaj Finance has built a franchise around distribution, underwriting and scale, and those advantages become more valuable when credit demand is still expanding. The market tends to reward lenders that can grow without sacrificing discipline, because even modest gains in loan book and fee income can translate into meaningful profit growth over time.

The stock has also been under pressure recently, falling in four straight sessions before Monday’s rebound and declining in seven of the previous 10 trading days. The 5% intraday gain to ₹995 showed how quickly sentiment can turn when a company reports numbers that reinforce the growth narrative. Technical traders will note the shares were still below the 50-day moving average, but for investors with a multi-year horizon, the more important point is that the underlying business momentum appears intact.

Jefferies was also upbeat, keeping its buy rating and naming Bajaj Finance a top pick. The brokerage said capital raising could help support growth, even if it has some modest effect on return on equity. That trade-off is often worth watching in financials: adding capital can dilute returns in the short run, but it can also give a strong lender room to keep growing faster for longer.

Bajaj Finance’s board has already approved a fundraise of about ₹18,000 crore, including a qualified institutional placement and preferential warrants to promoter Bajaj Finserv. JPMorgan said the company could also upgrade its financial-year 2027 growth guidance after the latest update. If that happens, it would strengthen the case that Bajaj Finance is still in the early stages of a larger compounding story rather than a mature lender nearing the end of its cycle.

For investors, the takeaway is straightforward: this is a high-quality financial stock with scale, momentum and analyst support, but it will still need to execute on growth, capital efficiency and asset quality. If you already own it, this update supports patience. If you do not, Bajaj Finance remains a name worth keeping on the watchlist for the long term.