Bajaj Finance Share Price: A Strong Surge Post-Q3 Earnings

In early trade on Thursday, Bajaj Finance's share price rose sharply by over 4% following the company's strong Q3 FY25 earnings report. The stock climbed as much as 4.52% to reach ₹8,108.90 on the BSE, marking a significant boost for investors.

At 9:20 AM, Bajaj Finance shares were trading at ₹8,030.45 per share on BSE, a 3.51% higher, showing positive investor sentiment.

With a 17% increase in consolidated net profit, the non-banking financial company (NBFC) showcased a robust economic performance, drawing positive sentiment from the market. Let's dive into the key factors driving this surge.

Market Performance: Bajaj Finance's Stock Trend

Bajaj Finance has displayed a strong upward trajectory in the stock market:

• 1-month gain: 17%
• 6-month gain: 18%
• 2-year gain: 35%

Q3 FY25 Financial Performance: Key Highlights

Revenue and Profit Growth

• Net Profit: ₹4,247 crore, up 17% YoY (₹3,639 crore in Q3 FY24)
• Net Interest Income (NII): ₹9,382 crore, up 23% YoY (₹7,655 crore in Q3 FY24)
• Assets Under Management (AUM): ₹398,043 crores, a 28% YoY increase

Loan Disbursements and Asset Quality

• New loans booked: 1.206 crores, up 22% YoY (98.66 lakh in Q3 FY24)
• Gross Non-Performing Assets (GNPA): 1.12% (vs. 0.95% in Q3 FY24)
• Net NPA: 0.48% (vs. 0.37% a year ago)
• Loan loss provisions: ₹2,043 crore, up 64% YoY (₹1,248 crore in Q3 FY24)

What's Driving Bajaj Finance's Growth?

1. Strong Loan Growth

Bajaj Finance reported its highest-ever loan disbursement, crossing 1.2 crore new loans in a quarter. 

2. Expansion in Assets Under Management (AUM)

AUM rose 28% year over year to ₹3,98,043 crore, reflecting increasing credit demand 

3. Increasing Net Interest Income (NII)

With a 23% YoY growth in NII, the company continues to maintain strong margins, benefiting from higher loan volumes and improved interest spreads.

4. Higher Provisions and NPAs

While the company reported increases in GNPA (1.12%) and NNPA (0.48%), it also increased provisions for bad loans,

Bajaj Finance Q3 Results: A Closer Look at Financial Stability

Summary: Bajaj Finance's Q3 Performance at a Glance

Bajaj Finance's Q3 FY25 results highlight its resilient growth trajectory, with strong net profit and revenue growth despite increasing NPAs. 

Key takeaways include:

• Strong Loan Disbursement: 1.206 crore new loans issued, highest-ever
• Higher AUM: Reaching ₹3,98,043 crore, a 28% increase
• Profit Growth: ₹4,247 crore net profit, 17% YoY rise
• Increased Loan Loss Provisions: Reflecting a conservative risk strategy

The company continues to maintain strong margins, a growing customer base, and a solid financial position. While NPAs have risen slightly, higher provisions indicate proactive risk management.