Bajaj Finance Loan Books Soar in Q1, Jefferies Recommends ‘Buy’
Bajaj Finance Ltd delivered an impressive performance in Q1 FY26, with its loan book expanding significantly, prompting global brokerage Jefferies to reiterate its ‘Buy’ recommendation on the stock. The growth trajectory reflects the company’s strong positioning in the consumer and retail lending segments.
Key Q1 FY26 Highlights
New Loans Booked: 10.97 million (▲34% YoY)
Assets Under Management (AUM): ₹3.55 lakh crore (▲31% YoY)
Customer Franchise: 83.64 million (▲22% YoY)
Deposits Book: ₹60,000+ crore (▲27% YoY)
Digital EMI Card Base: Over 50 million
The sharp growth in both loan volumes and customer additions underscores Bajaj Finance's continued dominance in unsecured retail credit and its digital lending platforms.
Jefferies’ View: Robust Momentum Justifies Valuation
Jefferies highlighted that Bajaj Finance’s loan growth is well ahead of industry averages, supported by:
Expanding digital reach
Product innovation across consumer and SME lending
Sustained asset quality performance
Improving return ratios and operating leverage
The brokerage maintains a target price of ₹9,000, implying strong upside potential from current levels.
Business Segment Trends
| Segment | Growth Outlook | Commentary |
|---|---|---|
| Consumer B2C Lending | Strong | Buoyed by demand for EMI and lifestyle financing |
| SME Lending | Steady | Higher penetration in urban and tier-2 markets |
| Commercial Lending | Moderate | Focus on risk-adjusted profitability |
| Deposits & Cards | Expanding | Rise in digital card usage and cross-selling |
Stock Market Reaction
Post the Q1 update, Bajaj Finance shares traded with mild gains as investors responded positively to strong disbursement figures and Jefferies' bullish outlook. Analysts expect sustained premium valuations if growth momentum and credit quality hold steady.
FAQs
Q1: How much did Bajaj Finance’s loan book grow in Q1 FY26?
The AUM rose by 31% YoY to ₹3.55 lakh crore, driven by consumer and SME lending.
Q2: What is Jefferies’ current rating on Bajaj Finance?
Jefferies has maintained a ‘Buy’ rating with a target price of ₹9,000, citing strong loan growth and digital expansion.
Q3: Which segment led the loan growth this quarter?
Consumer B2C and digital EMI financing segments showed the highest growth due to strong retail demand.
Q4: Has asset quality deteriorated amid high growth?
No, Bajaj Finance continues to maintain stable asset quality, backed by prudent risk controls and tech-enabled underwriting.
Q5: What is the outlook for Bajaj Finance shares?
Analysts remain bullish, especially given the company’s scalability, diversified portfolio, and digital strength in retail finance.
Published : On 9th July
Published : Pankaj
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