What explains the 8% crash in Bajaj Finance share price today, despite healthy Q2 results
Bajaj Finance's share price fell as much as 8.14% after Q2 results that showed 22% rise in net profit and revenue, and 24% surge in AUMs. What gives?
Shares of Bajaj Finance Ltd. fell to the lowest in at least five weeks after India's largest non-banking financial company declared its second-quarter results.
On Tuesday (11 November 2025), Bajaj Finance's share price fell as much as 8.14% to an intraday low of ₹997.00 on the BSE. The stock recouped some of the losses to end the day 7.38% lower at ₹1,005.35 even as the benchmark Sensex rose 0.40% to 83,871.32 points. That was despite financials showing a healthy growth in July-September 2025.
Bajaj Finance Q2 Results (Consolidated, YoY)
- NII up 22% at ₹10,785 crore
- New loans up 26% at 1.217 crore
- AUMs up 24% at ₹4,62,261 crore
- Net profit up 21.9% at ₹4,875 crore
During the quarter, Bajaj Finance's asset quality worsened—while the Net NPA ratio grew 10 basis points sequentially to 0.60%, the Gross NPA ratio widened 21 bps QoQ to 1.24%. The capital adequacy ratio stood at 21.33% in Q2 FY26 versus 21.96% in Q1 FY26.
Still, that's no reason for such a steep decline in share price. It's to do with the company's outlook on a key financial metric—assets under management.
What is AUM for an NBFC?
The value of all the loans and advances issued by an NBFC is shown as “assets under management” on its balance sheet. It represents the total market value of all financial assets.
An NBFC's net interest income—or core revenue—is directly linked to the size and performance of assets under management. A higher AUM generally indicates a larger operation and greater market presence.
Bajaj Finance Q2 Review
The company has revised lower its AUM guidance to 22-23% from 24-25% for FY26, after growth moderated to 24% in Q2 FY26 due to growing stress in the MSME and mortgage loans. The net interest margin—a profitability metric akin to ebitda—is also seen flat hereon as cost benefits will be passed on to customers.
“The credit cost remains flat and elevated…led mainly by MSME and captive two- and three-wheeler loan segments,” JM Financial said in a note dated 11 November. “In regard to this, company remains conservative on disbursals in these segments and revised its AUM growth guidance (lower).”
“The Mortgage and SME segments are growing slow which accounts for 31% and 14% of total AUM, respectively. The slowdown will be compensated from other new segments (gold loans, car loans, etc.) which are picking up well.”
According to HDFC Securities, the scale up of new products—which account for 6.3% of AUM—along with a strong uptick in festive season may partly offset the headwinds in the home loans and MSME loans segments.
Bajaj Finance Q2 Results: Analysts' Take
- JM Financial has downgraded the stock to “add” with a revised target price of ₹1,140. The earnings-per-share estimate has also been lowered by 2% for FY26 and 3% for FY27.
- HDFC Securities has maintained a “buy” rating on the stock with a revised target price of ₹1,105. That implies EPS of 23X—meaning, the company wants investors to pay ₹23 for every rupee earned.
On Tuesday, Bajaj Finance shares fell 7.38% to ₹1,005.35 apiece on the BSE even as the benchmark Sensex ended the day 0.40% lower at 83,871.32 points.
