Bajaj Finance shares surged nearly 4% after the company reported strong Q1FY27 results. Net profit rose 27% YoY to ₹5,986 crore, while NII increased 24% to ₹11,495 crore, supported by healthy loan growth and improving asset quality. AUM grew 23% YoY to ₹4 lakh crore, with Gross NPA improving to 1.2% and Net NPA declining to 0.49%, boosting investor confidence.
The stock price of Bajaj Finance saw an impressive jump of nearly 4 percent on July 31, making it the top gainer in Nifty 50 stocks due to its excellent Q1FY27 performance. The stock was valued at ₹1,094, marking an increase of 3.8 percent from the previous day, after having remained unchanged the previous day after the earnings.
Bajaj Finance posted a 27 percent year-over-year (YoY) increase in its consolidated net profit at ₹5,986 crore in the quarter ending June 30, 2026, exceeding estimates of ₹5,850 crore. There was a 24 percent YoY rise in its Net Interest Income (NII) to ₹11,495 crore from ₹9,270 crore in Q1FY26.
There was a 23 percent YoY growth in its Net Total Income to ₹13,929 crore from ₹11,328 crore during the same period the previous year.
Loan Growth Remains Strong, Asset Quality Improves
Bajaj Finance grew further with AUM reaching ₹4,00,389 crore for the year ended June 30, 2026, up by 23% YoY from ₹3,25,438 crore.
The company was helped by good underwriting practices put in place over the past year to improve asset quality. Gross NPA stood at 1.2% for the year ended June 30, 2026, from 1.28% last year. Net NPA declined to 0.49% from 0.63%.
The company kept their provisioning coverage ratio at 60% on Stage 3 assets. The company also reported a prudent management and macro-economic provisioning of ₹296 crore for Q1FY27. Excluding this provisioning, the company reported loan losses and provisions of ₹1,681 crore, down 13% YoY.
Why Bajaj Finance Stock Surged After the Results
Bajaj Finance shares rallied after the quarterly performance showed stronger-than-expected profitability, improving asset quality and healthy loan growth. Investors reacted positively to management commentary, which highlighted confidence in sustaining growth while maintaining profitability.
Investors turned optimistic on the stock after the results, citing better asset quality trends, improving credit costs and expectations of continued growth in assets under management. The company’s ability to control credit costs while expanding its loan portfolio boosted investor sentiment.
The stock has gained 8.7% so far in 2026, outperforming the Nifty 50, which has declined around 7% during the same period. Bajaj Finance currently has a market capitalisation of around ₹6.59 lakh crore.
