Why is the Bajaj Finance Share Price Falling?
Posted by : sachet | Fri Dec 26 2025
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Bajaj Finance shares have now slipped almost 1.02% in the past few days. The stock, which has been up nearly 50% so far in 2025, was the worst performer on the Nifty 50. At the same time, the leverage of Bajaj Finance’s customers remains a concern, J.P. Morgan analysts said. Bajaj Finance’s proactive move to reduce exposure to borrowers with multiple loan positions is well-suited for fiscal 2027. The stock is trading above all its moving averages, indicating a generally positive trend, but investor participation has declined, with delivery volume falling 1.29% relative to the 5-day average. The company has demonstrated strong long-term fundamentals with a healthy average return on equity of 17.05% and consistent positive results over the last 16 quarters, which support its valuation despite its current price drop.
Key Reasons Behind Bajaj Finance Share Price Falling
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There are several reasons behind the Bajaj Finance Share Price Falling, including the declaration of Q2 FY26 Results, a leadership change, MSME Lending, Auto Loans, and Rising NPAs.
Below are the reasons for the Bajaj Finance Share Price Fall
- Declaration of Q2 FY26 Results: Shares of Bajaj Finance tumbled nearly 7% for recent days, even though the company posted substantial double-digit profit growth for the July-September quarter, and the fall caught investors off guard, but a closer look at the details explains the sudden slide, which leads to the Bajaj Finance share price falling.
- Leadership Change: While the transaction was smooth and handled internally, leadership changes in high-valuation financial companies tend to draw attention. It becomes even more critical when the company is also sounding cautious on other fronts, which causes the Bajaj Finance share price falling in the long term.
- MSME Lending: The MSME lending segment, known for delivering high returns, faced headwinds this quarter. Bajaj Finance highlighted rising credit costs in this segment and said growth would now be more measured. From a risk management perspective, this is a wise decision.
- Auto Loans: The company deliberately slowed down 2-wheeler and 3-wheeler loan disbursals, which reflected in the numbers: 2-Wheeler Loan Disbursal, down 53% year-on-year, and 3-Wheeler Loan Disbursal, down 57% year-on-year. This sharp contraction added to investor concerns that overall loan growth might slow down.
- Rising NPAs: There was a slight rise in asset-quality stress; gross NPA rose to 1.03% from 0.86% last year, and net NPA increased to 0.50% from 0.38%. These levels are still within acceptable limits, and Bajaj Finance continues to maintain strong provisioning.
Bajaj Finance: Future Predictions By Analysts
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Bajaj Finance focuses on financial literacy, education, skill development, and rural empowerment, and on initiatives to promote digital inclusion in underbanked regions, and is committed to achieving carbon neutrality by 2030 through reduced paper usage and energy-efficient operations. Consequently, the company aims to increase its customer base to 190-210 million (m) by FY29, from 97.1 m currently, with cross-sell customers rising to 115-125 m. It’s also diversifying revenues by entering the green finance market. The company targets green financing of ₹20 billion (bn), especially from solar and EV products, for FY26.
Bajaj Finance: An Overview
Bajaj Finance Limited (BFL) is an Indian deposit-taking non-banking financial company (NBFC-UL) headquartered in Pune. It has 110.64 million customers and holds assets under management worth ₹462,250 crore (US$55 billion), as of September 2025. Bajaj Finance previously worked with RBL Bank and DBS Bank to issue co-branded credit cards. In early December 2024, the company ended its partnerships due to new Reserve Bank of India rules restricting the role of non-banking partners in such agreements. The total revenue of Bajaj Finance is ₹69,725 crore, the operating income is ₹26,388 crore, and the total assets are ₹367,870 crore. Bajaj Finance previously worked with RBL Bank and DBS Bank to issue co-branded credit cards.
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How has Bajaj Finance Performed Recently
The broader market context shows that while Bajaj Finance has outperformed the broader market significantly, generating a 30.78% return over the past year, compared to the BSE500’s negative return of -1.96%, it is currently facing challenges due to its high valuation metrics, including a Price-to-Book Value of 6.4, which is considered expensive relative to its peers. This premium valuation, combined with a PEG ratio of 2.2, suggests that the stock may be overvalued, contributing to the recent price decline. Overall, while the company has strong fundamentals and market-beating performance, the current market sentiment and valuation concerns appear to be negatively influencing its recent price movement.
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Is Bajaj Finance a Good Stock to Buy?
Bajaj Finance has several clear advantages that deliver solid returns and sustain growth, including a strong brand and reputation, diversified client base, deep technical expertise, and financial health with a global presence.
- Strong Brand and Reputation: Bajaj Finance mostly enjoys a globally recognised brand with a reputation for transparency, integrity, and high-quality delivery. This enhances long-term trust with clients and investors, thereby fostering a competitive environment.
- Diversify clients: Bajaj Finance serves clients across multiple sectors, including finance, healthcare, retail, manufacturing, and education, in over 40 countries. This diversification may reduce sector-specific risks and create multiple revenue streams.
- Deep technical expertise: Bajaj Finance has vast capabilities in cloud computing, AI, data analytics, blockchain, cybersecurity, and IT consulting. Its skilled workforce enables the delivery of customised solutions and the successful implementation of large-scale projects.
- Financial Health with Global presence: Bajaj Finance’s revenues are steadily increasing, and healthy cash flows support strategic acquisitions and expansions, enabling rapid entry into new markets and an expanding geographic footprint. It helps investors choose Bajaj Finance’s shares for the long term.
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Bajaj Finance: Share Price Target
Bajaj Finance’s share price target is 1107.25. The consensus estimate represents an upside of 10.67% from the last price of 1000.50. According to Wall Street analysts, the average 1-year price target for Baja Finance is ₹ 1077.02, with a low forecast of ₹646.4 and a high forecast of ₹1,365.00. According to projections from 31 analysts, the average 12-month price target for Bajaj Finance is ₹1083.903, with a high estimate of ₹1,329 and a low estimate of ₹640. Bajaj Finance has a potential upside of +4.32%, based on analysts’ average price target. The Bajaj Finance 52-week range spans from 678.28 to 1,102.50. Some analysts consider the Bajaj Finance share price a Buy, while others believe the Bajaj Finance should hold this share.
Note: For live Bajaj Finance Share Price Target, visit the univest app and check the stock fundamentals.
Bajaj Finance: Analysts’ Rating
- The average 12-month price target is ₹1245.00, and the consensus rating is Hold (mix of Buy, Hold, & Sell).
- The analyst’s target range is observed between a high of ₹1,211.00 and a low of ₹600.00.
- According to some analysts, concerns remain about a ‘Reduce’ call at ₹1,345.78.
- The analyst’s sentiment is mixed; there have been recent bullish calls (ICICI, JM), but also cautious ones (Motilal Oswal, Nuvama).
What is the Right Time to Buy Bajaj Finance Shares?
According to analysts, Bajaj Finance’s share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in Bajaj Finance. There are some factors to consider before investing in Bajaj Finance Company shares.
- Strong Fundamentals: Investors should review the fundamentals of Bajaj Finance before investing. If a company has strong fundamentals, high profitability, and effective management, then investors should consider investing in it.
- Financing Partnerships: Financing partnerships bridge the gap between customers and financial institutions, facilitating the distribution of a wide range of products and generating positive sales revenue for many consumers.
- Growth in the Diversified Sector: The company is well-positioned in the diversified sector to deliver benefits to Bajaj Finance. This dominant sector increases demand and prices for Bajaj Finance.
- Highly Volatile: Prices are highly volatile, so price changes significantly impact the Bajaj Finance Company’s stock price. Investors must review the market structure before investing in Bajaj Finance’s shares.
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Conclusion
Bajaj Finance remains financially strong, well-managed, and respected in the lending space. However, this quarter marked a shift toward caution, so both in how it’s lending and in how it’s managing internal leadership. The stock market reacts not just to current performance, but also to future expectations. In this case, the market responds not just to current performance, but also to future expectations. In this case, the market adjusted its outlook, leading to a 6% fall in the share price. Bajaj Finance’s share price target is 1107.25. The consensus estimate represents an upside of 10.67% from the last price of 1000.50. According to Wall Street analysts, the average 1-year price target for Baja Finance is ₹ 1077.02, with a low forecast of ₹646.4 and a high forecast of ₹1,365.00.
FAQs
What are the key reasons behind the Bajaj Finance share price fall?
Ans. There are several reasons behind the Bajaj Finance Share Price Falling, including the declaration of Q2 FY26 Results, a leadership change, MSME Lending, Auto Loans, and Rising NPAs. While the transaction was smooth and handled internally, leadership changes in high-valuation financial companies tend to draw attention. It becomes even more critical when the company is also sounding cautious on other fronts, which causes the Bajaj Finance share price falling in the long term.
What are the future predictions of the Bajaj Finance share?
Ans. Bajaj Finance focuses on financial literacy, education, skill development, and rural empowerment, and on initiatives to promote digital inclusion in underbanked regions, and is committed to achieving carbon neutrality by 2030 through reduced paper usage and energy-efficient operations. Consequently, the company aims to increase its customer base to 190-210 million (m) by FY29, from 97.1 m currently, with cross-sell customers rising to 115-125 m.
What is the Bajaj Finance share price target?
Ans. Bajaj Finance’s share price target is 1107.25. The consensus estimate represents an upside of 10.67% from the last price of 1000.50. According to Wall Street analysts, the average 1-year price target for Baja Finance is ₹ 1077.02, with a low forecast of ₹646.4 and a high forecast of ₹1,365.00. According to projections from 31 analysts, the average 12-month price target for Bajaj Finance is ₹1083.903, with a high estimate of ₹1,329 and a low estimate of ₹640.
What are the factors that affect the Bajaj Finance shares?
Ans. According to analysts, Bajaj Finance’s share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in Bajaj Finance. There are some factors to consider before investing in Bajaj Finance Company shares. Prices are highly volatile, so price changes significantly impact the Bajaj Finance Company’s stock price. Investors must review the market structure before investing in Bajaj Finance’s shares.
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