Bajaj Finance shares traded lower at ₹982.10, down 0.84% from the previous close of ₹990.45, despite the non-banking financial company reporting robust business metrics for the quarter ended December 31, 2025. The stock opened at ₹979.70 and touched an intraday high of ₹999.15 before settling near current levels around midday.

Strong Asset Growth and Customer Expansion

The company's Q3 FY26 performance reflects robust business expansion with substantial year-on-year improvements across core metrics:

Assets Under Management reached approximately ₹4,85,900 crore as of December 31, 2025, marking a significant 22% increase from ₹3,98,043 crore in the corresponding quarter of the previous fiscal year. On a sequential basis, AUM expanded by approximately ₹23,600 crore during the quarter, demonstrating the company's ability to effectively scale its lending operations.

Customer Base and Loan Portfolio Performance

Bajaj Finance's customer franchise showed remarkable expansion, growing to 115.40 million customers as of December 31, 2025, compared to 97.12 million in the same period last year. The quarter witnessed the addition of 4.76 million new customers, indicating strong market penetration and customer acquisition capabilities across its lending products.

New loan bookings demonstrated healthy growth momentum with 13.90 million loans booked in Q3 FY26, representing a 15% increase from 12.06 million loans booked in Q3 FY25. This growth in loan origination reflects the company's continued focus on expanding its lending portfolio and maintaining traction across various product categories.

Market Performance and Trading Activity

Despite the strong operational performance, the stock faced selling pressure during the trading session. Market activity showed moderate volumes with specific trading patterns:

The stock has gained 32.60% over the past year but declined 6.28% in the last month. With a total market capitalisation of ₹6,11,172 crore, Bajaj Finance remains one of India's largest NBFCs.

September Quarter Performance Recap

The strong Q3 performance builds upon robust results from the September quarter. Bajaj Finance reported impressive financial metrics for Q2 FY26:

The company achieved a 21.90% year-on-year increase in consolidated net profit to ₹4,875 crore for the September quarter, compared with ₹4,000 crore in the same period last year. Net interest income rose 22% to ₹10,785 crore from ₹8,838 crore a year ago.

The company cautioned that the disclosed figures are provisional and subject to statutory auditor review, maintaining transparency in its financial reporting process.

Bajaj Finance , one of India's leading non-banking financial companies (NBFCs), has revised its growth projections for the upcoming fiscal year, citing increased stress in the Small and Medium Enterprise (SME) and captive two-wheeler and three-wheeler segments. This adjustment comes as the company navigates through a challenging economic landscape marked by rising non-performing assets (NPAs) and sector-specific pressures.

Key Financial Metrics

The company reported an increase in its gross and net NPA ratios as of September 30, 2025:

This rise in NPAs indicates growing stress in Bajaj Finance's loan portfolio, particularly in the SME sector.

Revised Growth Outlook

In response to these challenges, Bajaj Finance has taken several strategic steps:

1. Reduced unsecured MSME volumes by 25%
2. Adjusted growth expectations for FY26 to 22-23%, down from previous projections
3. Anticipates credit costs to be at the upper end of the 1.85-1.95% range

The company now expects growth to stabilize at 10-12% in FY26, reflecting a more conservative outlook given the current market conditions.

Business Performance

Despite the headwinds, Bajaj Finance has shown resilience in certain areas:

• New loans booked during H1FY26 grew by 24% to 25.66 million
• Assets under Management (AUM) increased by 24% to ₹4.62 lakh crore

Market Performance and Analyst Views

The stock has demonstrated strong performance over the past year:

• 49% returns over one year
• Significantly outperformed broader market indices (Nifty: 7%, Sensex: 6%)

However, brokerage opinions are mixed:

• Motilal Oswal maintains a 'Neutral' rating with a target price of ₹1,160
• Axis Securities retains a 'Buy' rating, setting a target of ₹1,200

Strategic Initiatives

Bajaj Finance is embarking on a transformation journey dubbed 'BFL 3.0 – A FINAI Company'. This strategy aims to:

• Embed AI across all processes
• Accelerate growth and enhance customer engagement
• Improve productivity and reduce costs

The company expects to implement these FINAI capabilities over the next 12-18 months, potentially creating a sustainable growth cycle for the next 7-8 years.

Conclusion

While Bajaj Finance faces near-term challenges, particularly in the SME and two/three-wheeler segments, its strategic initiatives and strong market position suggest a cautious outlook. The company's ability to navigate through these headwinds while implementing its FINAI strategy will be crucial in maintaining its growth trajectory and market leadership in the coming years.

Investors and market watchers will be keenly observing how Bajaj Finance balances its growth ambitions with prudent risk management in this evolving economic landscape.