Quick Take: Bajaj Finance 1Q27- Credit cost compression drives earnings acceleration

研报英文原文证据摘录

Quick Take: Bajaj Finance 1Q27- Credit cost compression drives earnings acceleration

30 July 2026

Pranav Gundlapalle

+91 226 842 1407

India Financials pranav.gundlapalle@bernsteinsg.com

Bajaj Finance Ltd Ishan Mittal

+91 226 842 1442

Rating ishan.mittal@bernsteinsg.com

Underperform Anirudh Gupta

Price Target +91 226 842 1456

anirudh.gupta@bernsteinsg.com

BAF.IN 840.00 INR

Quick Take: Bajaj Finance 1Q27- Credit cost compression drives

earnings acceleration

Bajaj Finance reported a strong quarter, with healthy balance sheet growth and sharply

Close Date 29 Jul 2026

improving asset quality driving earnings momentum. Consolidated AUM grew 24% YoY, led by

BAF.IN Close Price (INR) 1,054.40

continued strength in mortgages, urban consumer finance and emerging segments, while NIMs

Price Target (INR) 840.00

remained broadly stable, supporting 23% YoY NII growth. The key positive was the continued

Upside/(Downside) (20)%

moderation in credit costs, which declined to 1.54%, resulting in a 27% YoY increase in EPS.

52-Week Range 1,101.82/787.42

Asset quality improved across most portfolios, with the consolidated GNPA ratio declining to

ASIAX 1,810.56

0.96%, while RoA remained stable at a healthy 4.7%.

FYE Mar

Sharp improvement in asset quality: Bajaj Finance continued to deliver healthy asset Div Yield 0.5%

quality trends during the quarter. Provisioning remained largely stable both sequentially Market Cap (INR) (B) 6,490.56

and year-on-year, driving a sharp improvement in credit costs to 1.54% (down 11bps QoQ EV (INR) (B) 10,049.11

and 33bps YoY). Excluding the management and macroeconomic overlay, reported credit Performance YTD 1M 6M 12M

cost stood even lower at 1.31%. Asset quality improvement was broad-based across Absolute (%) 5.7 3.8 12.2 17.9