Bajaj Finance Ltd. reported a strong performance for the second quarter of FY27, with consolidated net profit rising approximately 29% year-on-year and assets under management (AUM) increasing 26%. Following the results announced on October 19, 2026, leading brokerages, including HSBC, Nomura, JPMorgan and CLSA, maintained positive views on the non-banking financial company (NBFC), highlighting strong loan growth, resilient asset quality and a continued focus on profitability.

The brokerages have set price targets ranging from ₹1,260 to ₹1,300, reflecting confidence in the company's growth prospects despite potential pressure on net interest margins (NIMs) from rising funding costs.

Bajaj Finance Q2 FY27 Results: Key Highlights

Bajaj Finance delivered healthy growth across its key financial metrics during the July–September quarter of FY27.

Consolidated net profit: Approximately ₹6,367 crore, up 29% year-on-year. Some reports cited a figure of ₹6,266 crore.

Net interest income (NII): ₹13,335 crore, up 24% year-on-year.

Assets under management (AUM): ₹5.85 lakh crore, up 26% year-on-year.

Profit before provisions and operating expenses (PPoP): ₹10,700 crore, up 21% year-on-year, according to JPMorgan.

Loan growth guidance: Management raised its FY27 guidance to 26–27%, reflecting strong business momentum across segments.

HSBC on Bajaj Finance: Buy, Target Price ₹1,270

HSBC maintained a Buy rating on Bajaj Finance with a target price of ₹1,270.

According to HSBC, Bajaj Finance continues to deliver segment-leading performance. The brokerage also expects growth in the micro, small and medium enterprises (MSME) lending segment to potentially revive as the company moves forward.

HSBC believes Bajaj Finance has sufficient levers to offset potential revenue headwinds and protect its return on assets (ROA) and return on equity (ROE) over FY28–FY29.

The brokerage also views a potential capital raise positively, as additional capital could support business expansion and improve the company's ability to sustain growth.

Nomura on Bajaj Finance: Buy, Target Price ₹1,270

Nomura maintained its Buy rating on Bajaj Finance with a target price of ₹1,270. The brokerage said the company's Q2 FY27 net profit was broadly in line with its estimates.

Management revised its FY27 loan growth guidance to 26–27%, while retaining its medium-term growth guidance of 23–25%.

Nomura highlighted several factors investors should monitor:

Credit costs are expected to remain at a similar run rate in the second half of FY27 as in the first half.

Rising interest rates could create marginal headwinds for net interest margins.

The brokerage trimmed its earnings-per-share (EPS) estimates by 2–3%.

Nomura expects ROA of 4.2% and ROE of 19.9% over FY28–FY29.

Nomura also noted that Bajaj Finance trades at approximately 3.4 times its one-year forward price-to-book value, making future earnings growth and return ratios important factors in evaluating its valuation.

JPMorgan on Bajaj Finance: Overweight, Target Price ₹1,260

JPMorgan maintained an Overweight rating on Bajaj Finance with a target price of ₹1,260, describing the quarter as a strong operating performance.

The brokerage reported the following key numbers for Q2 FY27:

Net interest income stood at ₹13,330 crore, up 24% year-on-year and 6% quarter-on-quarter.

Profit before provisions and operating expenses reached ₹10,700 crore, up 21% year-on-year.

Profit after tax, excluding minority interest, was ₹6,270 crore, up 29% year-on-year and 5% quarter-on-quarter.

JPMorgan highlighted the upward revision in loan growth guidance, continued healthy asset quality and management's focus on protecting returns despite rising funding costs.

The brokerage considers Bajaj Finance a best-in-class earnings compounder, supported by healthy loan growth, operating leverage from ongoing artificial intelligence (AI) initiatives and a strong track record of managing credit costs.

JPMorgan expects the company to deliver an earnings compound annual growth rate (CAGR) of approximately 21% over FY27–FY29.

CLSA on Bajaj Finance: Outperform, Target Price ₹1,300

CLSA maintained an Outperform rating on Bajaj Finance and set a target price of ₹1,300, the highest among the four brokerages covered in this report.

The brokerage said the company's Q2 FY27 profit before tax (PBT) was in line with expectations. After adjusting for a macroeconomic provision of ₹340 crore, PBT was approximately 4% above estimates.

CLSA highlighted the acceleration in AUM growth, which increased from 24% year-on-year in Q1 FY27 to 26% in Q2 FY27. Following this performance, management raised its FY27 growth guidance by 3–4 percentage points to 26–27%.

The brokerage also noted that interest rate swaps helped Bajaj Finance benefit from its cost of funds during the quarter. However, management cautioned that potential interest rate increases could put pressure on margins going forward.

Other key observations included:

Profit before provisions and operating expenses came in slightly above estimates.

The net slippage ratio declined by 110 basis points year-on-year, indicating improving asset quality.

Management explained that the proposed equity capital raise would support strong growth and address leverage exceeding five times.

The company is working to offset the potential impact of changes in insurance guidelines, although specific measures have not yet been detailed.

All four brokerages maintained positive ratings on Bajaj Finance, with target prices between ₹1,260 and ₹1,300.

Key Risks Investors Should Watch

Despite the strong quarterly performance, investors should monitor several factors that could affect Bajaj Finance's future earnings.

First, rising interest rates and funding costs may put pressure on net interest margins. Second, the company must maintain asset quality as its loan book expands. Third, the proposed equity capital raise and the company's leverage position could influence future returns on equity.

Disclaimer: This article is for informational and educational purposes only and should not be considered investment advice. Brokerage ratings and price targets represent analysts' opinions and may change. Investors should conduct their own research or consult a SEBI-registered financial adviser before making investment decisions.