Bajaj Finance has allotted 2,89,200 Secured Redeemable Non-Convertible Debentures (NCDs) at a face value of Rs. 1 Lakh each, aggregating to Rs. 2892.42 crore, on a private placement basis. The allotment was approved by the Debenture Allotment Committee at its meeting held on 12 May 2026, which commenced at 12:20 p.m. and concluded at 12:50 p.m. This disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

NCD Allotment: Key Details

The allotment was structured across two distinct options, each carrying different tenures, coupon rates, and maturity profiles. The following table summarises the key parameters of both options:

Coupon Payment Schedule

Both options follow an annual coupon payment structure. The scheduled coupon and principal payment dates are as follows:

Security and Charge

The NCDs under both options are secured instruments. The repayment of principal, interest, trustees' remuneration, and all other related monies will be secured by a first pari-passu charge on book debts and loan receivables. The security cover shall not be less than 1.00 time the aggregate outstanding value of debentures issued under the relevant document. No special rights, privileges, or interests are attached to either option, and no delays or defaults in payment of interest or principal have been reported.

Both tranches are proposed to be listed on the Wholesale Debt Market Segment of BSE Limited, providing institutional investors with a regulated secondary market for these instruments. The allotment was communicated to both BSE Limited and the National Stock Exchange of India Ltd. in accordance with applicable disclosure requirements.

Bajaj Finance has outlined comprehensive FY27 profitability targets alongside its ambitious long-term growth strategy, setting specific ROA and ROE goals while projecting operational efficiency improvements. The non-banking financial company expects to achieve ROA of 4.40-4.60% and ROE of 19-20% for FY27, demonstrating confidence in sustained business expansion through diversified portfolio growth.

FY27 Profitability and Operational Targets

The company has established detailed profitability metrics for FY27, expecting ROA to range between 4.40-4.60% and ROE between 19-20%. Despite anticipating a small decrease in Net Interest Margin (NIM), Bajaj Finance projects ongoing operational expenditure optimization to result in 25-40 basis points improvement in Net Total Income (NTI). The company also expects credit costs to drop to 145-160 basis points, while GNPA and NNPA are projected to remain stable.

Long-Term Growth Strategy and Portfolio Expansion

The company maintains its long-term AUM growth guidance range of 22-25%, with commitment to sustain over 20% yearly growth. This strategic outlook is supported by new ventures including gold loan, tractor financing, and commercial vehicle lending. The gold loan portfolio is expected to hit 5% of total AUM by FY27, up from the current 3.50%, representing significant expansion in this secured lending segment.

Business Segment Outlook

MSME growth is projected to return to double digits in Q2 and Q3 FY27, with management noting that this outlook relies on reduced geopolitical tensions and economic stability. The company has observed favorable trends in credit costs, supporting its optimistic growth projections across various business segments.

Analyst Perspectives

Analyst opinions remain divided on the company's prospects. Macquarie has assigned an Underperform rating with a target price of ₹860, citing concerns over rich valuation at approximately 4.10x FY27E P/B ratio and potential risks to sustaining the targeted ROA range. Conversely, JPMorgan maintains an Overweight rating with a target price of ₹1,080, highlighting strong early trends and expecting growth momentum to support approximately 26% earnings CAGR despite potential macro risks.