Bajaj Finance (BAF IN) – Q4FY26 Result Update – Healthy growth outlook with improving credit cost – Upgrade to ‘BUY’
Published on 30 Apr 2026
AUM grew 22% YoY to INR 5,099.8bn led by strong growth in mortgages, sales finance and B2C loans. Company is witnessing sustained traction in new verticals (Cars, Gold, MFI) and new customer addition (~15-17mn in FY27); we build an AUM growth of 23%/22% in FY27/FY28E. Expect FY27 NIM to moderate as hardening of bond yields is likely to impact CoF. Asset quality ratios saw improvement across segments while credit cost improved in Q4 (1.65%) supported by a healthy trend in vintage credit performance. Opex is likely to moderate by ~30 bps in FY27 benefited from improved FINAI capabilities. We slightly tweak our estimates to account for positive growth outlook, lower credit cost guidance/improved opex in FY27E. Upgrade to BUY with a multiple of 4.1x (vs. 3.9x earlier) and a TP of Rs 1,100.
