Asset Stress Alert: Bajaj Finance’s Q2 Isn’t All Rosy – Are You Prepared?

📊 Q2 FY26 Performance Highlights - Net Profit: ₹4,875–₹4,948 crore, up ~22–23% YoY - Net Interest Income (NII): ₹10,785 crore, up 22% YoY - New Loans Booked: Up 26% YoY - Pre-Provisioning Operating Profit: Up 21% YoY Despite strong growth, the profit missed analyst expectations of ₹4,969 crore, and NII was slightly below forecast. ⚠️ Investor Watchouts - Asset Quality Deterioration: Signs of stress in mortgage and SME segments. Credit costs expected at the higher end of 1.85–1.95% range - AUM Growth Guidance Cut: Management revised full-year AUM growth to 22–23% (from 24–25%) - Mixed Analyst Sentiment: - Morgan Stanley: Overweight with revised target - Bernstein: Underperform citing asset stress 📈 Stock Impact - Current Price: ₹1,085.40 (↑1.76%) - Market Reaction: Mildly positive, but cautious optimism due to missed estimates and guidance cut - Valuation Sensitivity: Any further asset quality issues or slowdown in loan growth could pressure valuations 🚀 Future Growth Drivers - Digital Expansion: Continued push into digital lending and fintech integrations - Consumer Credit Demand: Strong festive season and retail credit appetite may support near-term growth - SME Recovery: Management expects MSME segment to bottom out by Q1 FY27