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Bajaj Finance (CMP - ₹1112, Mcap - ₹6,92,606 crore, Target - ₹1,290, Buy)

ICICIdirect Research 31 Jul 2026 DISCLAIMER

Management articulated a long-term strategic vision to achieve an eightfold increase in AUM from ₹5.1 lakh crore in FY26 to ₹40 lakh crore in FY36, thereby achieving market share of 5%.  
Bajaj finance has reported a strong quarter, with AUM growth at higher end of guidance (22-24%), resilient asset quality and decline in credit cost aiding earnings growth.
For FY27, management has reiterated continued focus on customer accretion, driven by higher traction in new segments (gold, MFI, tractor financing) and revival in SME business. Margins could remain in a broad range as anticipated rise in cost of funds is seen to be offset by change in asset mix. Asset quality resilience is to be maintained with credit cost guidance unchanged at 185-195 bps.
While guidance remained unchanged after a strong Q1FY27, the company indicated that an upward revision to growth guidance could be considered after Q2FY27 if the current business momentum is sustained.
Anticipating optimistic guidance for FY27 and long-term strategic vision, along with AI-led transformation and deeper customer engagement, we continue to remain positive on the stock.

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