Bajaj Finance has allotted 5,30,500 Secured Redeemable Non-Convertible Debentures (NCDs) aggregating to ₹5,306.57 crore through private placement. The Debenture Allotment Committee approved the issuance on July 6, 2026, to raise debt capital from select institutional investors. The instruments are secured by a first pari-passu charge on book debts and loan receivables, with a security cover not less than 1.00 times the aggregate outstanding value.

NCD Allotment Details

The issuance is divided into two options with varying tenures and coupon rates. The debentures have a face value of ₹1 lakh each and are proposed to be listed on the Wholesale Debt Market Segment of BSE Limited.

Interest Payment Schedule

For Option I, the first coupon payment is due on September 20, 2027, followed by annual payments on September 20, 2028, and September 20, 2029. For Option II, the first coupon payment is scheduled for July 6, 2027, with subsequent annual payments until maturity on July 4, 2036. The debentures are redeemable at maturity.

Bajaj Finance reported a 24% year-on-year increase in assets under management (AUM) to ₹546,900 crore as of 30 June 2026. The non-banking financial company added approximately ₹36,900 crore to its AUM during Q1 FY27, compared to ₹441,450 crore in the corresponding period of the previous year. The strong quarterly performance has drawn positive responses from leading global brokerages, with Morgan Stanley, JPMorgan, and Citi all maintaining bullish stances on the stock.

New loans booked grew by 20% to 16.13 million in Q1 FY27, up from 13.49 million in Q1 FY26. The customer franchise expanded to 124.43 million as of 30 June 2026, an increase from 106.51 million as of 30 June 2025, reflecting 17% year-on-year growth. The customer base grew by 5.10 million during the quarter under review, marking a record addition. The deposits book stood at approximately ₹68,500 crore as of 30 June 2026. These business metrics were shared on a consolidated basis and are provisional, subject to review by the statutory auditors of the company.

Business Metrics Summary

The following table presents key business metrics for Bajaj Finance on a consolidated and provisional basis:

Analyst Views

Global brokerages have responded positively to the Q1 FY27 business update, citing above-estimate growth across key metrics. Citi joined Morgan Stanley and JPMorgan in maintaining a constructive outlook, highlighting robust growth across sales finance, mortgages, gold loans, tractor, CV/CE, and new car financing segments. However, Citi noted that SME lending remains cautious and the captive two-wheeler and three-wheeler book continues to decline. The following table summarises the latest analyst recommendations:

Morgan Stanley maintained its Overweight rating on Bajaj Finance with a target price of ₹1,120, citing above-estimate AUM growth of 24% year-on-year, 20% loan growth, and 17% customer franchise growth, alongside strong momentum at Bajaj Housing Finance Ltd (BHFL). The brokerage flagged Q1 net interest margins (NIMs), credit costs, and the FY27 outlook as key monitorables going forward.

JPMorgan also maintained its Overweight rating while raising its target price to ₹1,215, driven by better-than-expected AUM growth of +7.20% quarter-on-quarter and +23.90% year-on-year to ₹5.47 tn. The brokerage highlighted record new customer additions of 5.10 million as a factor easing growth concerns, along with a flat deposit book at ₹685 bn. JPMorgan expressed increased confidence in Bajaj Finance achieving FY27 AUM growth at the higher end of its guidance, implying potential upside to consensus estimates.