Bajaj Finance: strong growth meets a higher-rate cycle

Bajaj Finance is showing relative strength even as the broader market reacts to the RBI’s 25 bps repo rate hike. The RBI raised the repo rate to 5.50% and shifted its stance to calibrated tightening. Against this backdrop, Bajaj Finance remains interesting because its Q2 operating numbers were strong. Assets under management grew 26.5% YoY to approximately ₹5.85 lakh crore as of September 30, 2026. The company added 4.42 million customers during Q2, taking its customer franchise to around 128.85 million. New loans booked increased 11% YoY to 13.45 million. The company has also approved a ₹17,500 crore capital raise through a QIP and preferential warrants. This can provide additional capital for future growth, although investors should also consider the potential impact of equity dilution. The immediate challenge is funding cost. Following the RBI rate hike, Bajaj Finance increased fixed deposit rates by 15-40 bps across several tenures. This could increase the cost of mobilising deposits and makes the upcoming margin commentary particularly important. From a technical perspective, ₹936 remains an important support zone, while the ₹1,020 area could act as a major hurdle. The stock has already corrected significantly from its recent high, so the next move needs confirmation from price and volume. view: Strong operating growth is a positive, but the market will now watch margins, funding costs and asset quality more closely. I would prefer confirmation above resistance rather than chasing short-term volatility. Disclosure: I do not hold Bajaj Finance shares as of this post. This content is for educational and informational purposes only and is not a recommendation to buy or sell.