Why Bajaj Finance Stock Is Falling Today | Q2 Results, Guidance Cut & Market Outlook 2025

Bajaj Finance shares witnessed a sharp correction in early trade on November 11, 2025, plunging over 6–7% despite strong quarterly results. The sudden drop left many investors wondering "why is Bajaj Finance falling when profits are rising?"

Let’s break down what’s going on, what the numbers show, and what this means for both short-term traders and long-term investors.

📉 Market Reaction: What Happened Today

According to market data, Bajaj Finance (NSE: BAJFINANCE) opened lower at around ₹1,042 and quickly dropped below ₹1,020 in the morning session. The stock had closed at ₹1,066 on November 10.

Despite showing healthy profit growth, investors reacted negatively to the company’s cautious outlook and slight rise in bad loans. In fact, the stock touched its lowest level in a month before finding support.

💰 Q2 FY26 Results Overview

In the July–September 2025 quarter (Q2 FY26), Bajaj Finance reported strong growth in revenue and profit:

  • Net Profit: ₹4,875 crore (up 22% YoY)
  • Net Interest Income (NII): ₹10,785 crore (up 22%)
  • Total Income: ₹14,433 crore (up 20%)
  • Assets Under Management (AUM): ₹4.62 lakh crore (up 24%)
  • Customer Base: 11.06 crore
  • New Loans Booked: 1.22 crore

At first glance, these are strong numbers. However, under the surface, a few issues are starting to appear.

⚠️ What Triggered the Fall?

1️⃣ Guidance Cut for FY26

The biggest reason for the fall is Bajaj Finance lowering its AUM growth guidance.
The company now expects 22–23% growth in FY26, compared to 24–25% earlier. Management cited “emerging stress” in certain MSME (small business) and unsecured segments, and decided to tighten risk controls.

2️⃣ Rising Credit Stress

Gross NPAs (bad loans) increased to 1.24%, and net NPAs rose to 0.60%, up from 1.06% a year ago.
The company also raised provisions by 19% (to ₹2,269 crore) to cover possible loan defaults  indicating more cautious lending.

3️⃣ Sector Headwinds for NBFCs

All major NBFCs (non-bank finance companies) are facing higher funding costs due to rising bond yields and tighter liquidity.
This means profit margins could remain under pressure for a few more quarters, even for strong lenders like Bajaj Finance.

4️⃣ Valuation Pressure & Profit Booking

The stock has rallied nearly 60% YTD in 2025. With a P/E ratio above 35, even a small slowdown in growth can trigger profit booking by institutional investors.

5️⃣ Missed Street Expectations

While Bajaj Finance’s profit grew, it was slightly below analyst estimates. The Street had expected even stronger loan growth, so traders took the opportunity to sell at the top.

📊 Financial Health Check

Even with short-term concerns, Bajaj Finance remains fundamentally strong:

AUM: ₹4.62 lakh crore, up 24% YoY.

Net Profit: ₹4,875 crore, up 22% YoY.

Gross NPA: 1.24%, slightly higher.

CAR: 21%+, remains strong.

NIM: Around 10.3%, a bit lower due to higher funding costs.

These numbers show that the company is still healthy — but investors are repricing the future risk-reward ratio.

📈 Price Levels & 52-Week Range

  • Current Price (Nov 11 2025): ₹1,020 – ₹1,050
  • Previous Close: ₹1,066
  • 52-Week High: ₹1,102
  • 52-Week Low: ₹645
  • Market Cap: ~₹6.7 lakh crore

The price is near the upper end of its one-year range, meaning the downside reaction may simply be part of a natural correction after a big run-up.

🔮 Outlook: What’s Next for Bajaj Finance

Short-Term (3–6 Months):
Expect volatility. Traders will watch how asset quality evolves in Q3. If NPAs rise again or growth slows further, the stock may remain under pressure.

Long-Term (2–5 Years):
Bajaj Finance remains India’s most diversified NBFC, backed by strong digital infrastructure and brand trust.
Once MSME stress stabilizes and borrowing costs ease, the company is likely to regain momentum. For patient investors, this correction could be a healthy buying opportunity.

✅ FAQs on Bajaj Finance’s Fall

  1. Why did Bajaj Finance share fall 6–7%?
    Because of lower growth guidance and rising credit stress despite strong profits.

  2. What are Bajaj Finance’s latest results?
    Q2 FY26 profit ₹4,875 crore; NII ₹10,785 crore; AUM ₹4.62 lakh crore.

  3. Did NPAs rise?
    Yes. GNPA at 1.24%, up from 1.06% YoY.

  4. Why did it cut guidance?
    Due to stress in MSME loans and a cautious approach toward unsecured lending.

  5. Is Bajaj Finance still profitable?
    Absolutely. It remains India’s top NBFC with strong fundamentals.

  6. What’s the current share price?
    Around ₹1,020–₹1,050 (Nov 11 2025).

  7. What’s the 52-week high and low?
    ₹1,102 (high) and ₹645 (low).

  8. Is this just profit-booking?
    Partly yes — the stock had rallied significantly before the results.

  9. What should traders watch next?
    NPA trend, loan growth, funding costs, and next-quarter commentary.

  10. Should I buy or sell now?
    Depends on your horizon. Long-term investors may hold; short-term traders should wait for stability.


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