In its latest report dated 30th April 2026, Axis Securities has stated that Bajaj Finance is entering a phase of improved growth and earnings. It is a high-quality compounding franchise, underpinned by strong execution, healthy sustained growth delivery drivers, and a strong return ratio profile.
The brokerage has projected a target price of ₹1160 which is an upside of 25%.
“Bajaj Finance is entering a phase of improved growth and earnings, with AUM growth seen at 22-24% underpinned by normalisation in MSME, winding-down of the captive book, continued market share gains (~2x system growth), and strong momentum in emerging segments such as Gold, CV, 2-wheelers and tractors. Asset quality tailwinds, led by captive run-down and calibrated underwriting, are expected to drive credit costs lower. Importantly, the ongoing FINAI transformation creates a multi-year runway for productivity gains and scalability. Profitability is poised to sustain, with operating leverage and AI-led efficiencies driving cost ratios lower. We expect BAF to register a strong AUM/NII/Earnings growth of 24/22/27% CAGR over FY26-28E while delivering an RoA of 4.4-4.5% over the FY27-28E. BAF continues to reinforce its positioning as a high-quality compounding franchise, underpinned by strong execution, healthy sustained growth delivery drivers, and a strong return ratio profile,” the analyst stated.
