Bajaj Finance Posts Robust AUM Growth Amid Market Challenges, Says Jefferies

Bajaj Finance Ltd. has demonstrated resilience in its first quarter business update, showcasing a strong Asset Under Management growth of 25% year-on-year and 6% quarter-on-quarter. This performance is particularly noteworthy given the softer market trends, especially in the consumer durables segment, Jefferies said.

The firm reported a 25% increase in its assets under management, reaching Rs 4.41 lakh crore for the quarter ending June 30, 2025. Its loan book expand by 23% year-on-year, totaling 13.49 million loans in the first quarter. Additionally, the company's deposits grew by 15% year-on-year, amounting to Rs 72,100 crore.

Despite a downturn in sales of air conditioners and refrigerators, Bajaj Finance's AUM growth remained robust, the brokerage highlighted. "This is encouraging as it comes in a quarter when sales of consumer durables were down," Jefferies stated. The growth may have been bolstered by better trends in other segments, including the cross-selling of personal loans and SME loans.

The customer base also saw significant expansion, growing by 21% YoY and 5% QoQ. "Healthy asset growth and easing fund cost can aid earnings and valuations." Jefferies maintained a 'buy' call on Bajaj Finance, with a price target of Rs 1,044, representing a 15% upside from the current price of Rs 910.70.

Jefferies' report further elaborates on the positive outlook for Bajaj Finance, emphasising the company's ability to navigate market challenges effectively. "AUM growth may have been aided by better trends in other segments," the note added, highlighting the company's strategic focus on diversifying its loan portfolio.

Bajaj Finance continues to be a strong player in the consumer finance sector, the brokerage noted.