The shares of this diversified non-banking finance company fell up to 6 percent on the previous trading session, even after the company announced positive results, a bonus, and a stock split.
Price Movement
With a market capitalization of Rs 5.36 lakh crore, on Wednesday, the shares of Bajaj Finance Ltd closed at Rs 8,635.70 per share, decreased around 5 percent as compared to the previous closing price.
Matter explanation
The company’s board approved a stock split, dividing each share with a face value of Rs 2 per share into two shares with a face value of Rs 1 per share. Following this, it recommended a 4:1 bonus issue, granting 4 bonus shares of Rs 1 each for every 1 existing share held. Effectively, shareholders will receive 8 shares of Rs 1 each for every original Rs 2 share, significantly increasing the number of outstanding shares.
Financial Examination
Recently, Bajaj Finance Ltd reported positive results in Q4FY25, Revenue increased by 2.3 percent on a quarter-on-quarter basis from Rs 18,035 crore in Q3FY25 to Rs 18,457 crore in Q4FY25. Further, revenue zoomed by 23 percent year on year, from Rs 14,926 crore in Q4FY24 to Rs 18,457 crore in Q4FY25.
The company’s net profit increased by 6 percent on a quarter-on-quarter basis, from Rs. 4,308 crore in Q3FY25 to Rs. 4,546 crore in Q4FY25. Further, net profit magnified significantly
by 18 percent year on year from Rs 3,825 crore in Q4FY24 to Rs 4,546 crore in Q4FY25. The company posted a strong FY24- 25 performance, with revenue surging 27 percent from Rs 54,972 crore to Rs 69,684 crore. Net profit jumped 16 percent, from Rs 14,451 crore to Rs 16,779 crore, reflecting robust growth and improved profitability over the previous financial year.
Moreover, the Board of Directors has declared a Special Interim Dividend of Rs 12 per equity share (600 percent of the Rs 2 face value) for the financial year ended 31 March 2025, rewarding shareholders with a significant distribution.
Also read: Infra stock in focus after securing orders worth ₹11 Cr for electrical and upgradation work
Market Outlook
Management expects 25 percent consolidated balance sheet growth and 22–23 percent profit growth in the next fiscal year. While remaining cautious due to macroeconomic headwinds, they aim to leverage strong capital and customer base, prioritizing margin maintenance and risk discipline without compromising profitability amidst potential credit cost pressures.
Management Comment
Bajaj Finance expects strong FY26 performance, targeting 14–16 million new customers and 24–25 percent AUM growth. NIM is expected to remain stable, with improved Opex and fee income. Profitability, ROA (4.4–4.6 percent), ROE (19–20 percent), and AI adoption across functions will drive future efficiency and growth.
Geographic presence
As of 31 March 2025, Bajaj Finance’s geographic presence reached 4,263 locations, including 1,582 urban and 2,681 rural lending points. The company added only 4 new locations in Q4 FY25, indicating a slowdown after rapid expansion in prior quarters and years.
Company Profile
Bajaj Finance Ltd. is engaged in lending and accepting deposits. It has a diversified lending portfolio across retail, small and medium-sized enterprises (SMEs), and commercial customers with a presence in both urban and rural India.
Written by Abhishek Singh
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