Shares of Bajaj Finance climbed nearly 7% to a record high of Rs 1,127 on Friday after the non-banking financial company (NBFC) posted stronger-than-expected earnings for the June quarter. The robust results prompted several brokerages to raise their target prices and reaffirm confidence in the company's growth prospects.
The stock gained as much as 6.7% in early trade to touch Rs 1,124.50, emerging as one of the top performers on the Nifty 50. The latest rally has added to its recent momentum, with Bajaj Finance advancing 8.6% over the past five trading sessions, nearly 12% in the last month and more than 24% over the previous six months, according to market data.
Investor sentiment strengthened after the company announced its June-quarter results on Thursday, which exceeded Street expectations across most key financial metrics.
What fuelled the rally?
Bajaj Finance reported a 27% year-on-year increase in consolidated net profit to Rs 5,986 crore for the quarter ended June 2026, comfortably surpassing analysts' forecasts.
Net interest income (NII) rose 23% to Rs 12,571 crore. Although the figure was marginally below some market estimates, the company benefited from improved asset quality and sustained profitability during the quarter.
Gross non-performing assets (GNPA) improved to 0.96%, down from 1.03% in the previous quarter, while net NPA declined to 0.39% from 0.50%, reflecting stronger asset quality.
The company's performance across key financial indicators exceeded expectations, encouraging investors to push the stock to an all-time high.
Brokerages lift target prices
Following the strong quarterly performance and positive management commentary, several brokerages revised their price targets upward.
CLSA retained its "Outperform" rating and increased its target price to Rs 1,300, describing Bajaj Finance as the "Iron Man" of the NBFC sector. The brokerage said profit after tax surpassed estimates due to stronger operating performance and lower credit costs, while highlighting the significant improvement in asset quality as the quarter's biggest positive.
HSBC maintained its "Buy" recommendation and raised its target price to Rs 1,270, calling the June-quarter performance exceptionally strong across major operating metrics. The brokerage also upgraded its earnings estimates for FY27 to FY29, citing stronger growth prospects and continued improvement in asset quality.
Nomura reiterated its "Buy" rating with a revised target price of Rs 1,140, noting that earnings outperformed expectations on the back of healthy operating performance and robust asset quality.
Bernstein, however, retained its "Underperform" rating and target price of Rs 840 despite acknowledging the company's strong quarterly results. The brokerage said healthy growth in assets under management (AUM), stable net interest margins and easing credit costs supported the quarter, but maintained that the stock's current valuation leaves limited room for further upside.
Positive management outlook boosts confidence
Apart from the earnings beat, analysts also drew encouragement from the company's management commentary.
Brokerages noted that the management remained optimistic about future business growth while maintaining a focus on profitability. Some also highlighted improving trends in personal and business loan portfolios, suggesting that guidance on key operating metrics could be revised after the second-quarter results if current momentum continues.
The combination of stronger earnings, improving asset quality and an upbeat business outlook significantly boosted investor confidence, driving Bajaj Finance shares to a fresh lifetime high.
