Bajaj Finance Shares Price Slumps The Most In Over Two Years After Q1 Asset Quality Deteriorates

Shares of Bajaj Finance Ltd. fell 6.15% on Friday the most since Jan. 5, 2023, after the company posted its first quarter results for financial year 2026. The stock came under pressure as its asset quality showed signs of strain. Gross non-performing assets rose to 1.03% from 0.96% in the previous quarter, while net NPA increased to 0.5% from 0.44%.

Loan losses and provisions for the quarter stood at Rs 2,120 crore, up 26% year-on-year, though slightly lower than the Rs 2,300 crore reported in the March quarter.

For the quarter ended June 2025, Bajaj Finance reported a consolidated net profit of Rs 4,765 crore, up 22% from Rs 3,940 crore in the previous quarter. The company’s NII also grew 22% sequentially to Rs 10,227 crore, reflecting robust lending activity and improved yields. Analysts had projected a profit of Rs 4,719 crore and NII of Rs 10,100 crore, making the results a modest beat.

Despite the uptick in impairments, Bajaj Finance continues to be one of India’s leading non-banking financial companies (NBFCs), offering a wide range of lending products including consumer loans, SME financing, and commercial lending.