Bajaj Finance Q1 profit rises 27.4%; Motilal Oswal upgrades to Buy

Bajaj Finance reported Q1 FY27 consolidated net profit of ₹5,986 crore, up 27.4% year-on-year, as AUM grew 24% to ₹5.46 lakh crore and asset quality improved. Shares rose as much as 6.2%, while Motilal Oswal set a ₹1,300 target price.

— Source publishedFri, 31 Jul, 2026, 09:50 IST·First seen Fri, 31 Jul, 2026, 09:53 IST·Source Mint · Markets

What happened

Bajaj Finance posted strong Q1 FY27 earnings, with profit up 27.4%, AUM up 24% and improved asset quality. Shares climbed over 6% after results, while Motilal

Key facts

  • Q1 FY27 consolidated net profit: ₹5,986 crore, up 27.4% YoY
  • Net interest income: ₹12,571 crore, up 23% YoY
  • AUM: ₹5.46 lakh crore, up 24% YoY
  • GNPA: 0.96%, versus 1.03% in March quarter
  • NNPA: 0.39%, versus 0.50% a year earlier
  • Share price rose as much as 6.2% to ₹1,122
  • Motilal Oswal target price: ₹1,300, implying 23% upside
  • FY28E valuation: 3.9x P/BV and about 20x P/E
  • Projected FY26-FY28 PAT CAGR: about 30%

Why this matters

The combination of scaled AUM, improving credit metrics and renewed investor confidence makes Bajaj Finance an increasingly attractive lending, embedded-finance or distribution partner for consumer-facing businesses.