Bajaj Finance shares were climbing on Monday after the non-banking financial company announced its Q2 results.

What Happened: Bajaj Finance saw its net profit increase 12.64% year on year to ₹3,999.73 crore. The NBFC's net interest income jumped 23% to ₹8,838 crore compared to ₹7,196 crore in the previous year.

The loan losses and provisions reached ₹1,909 crore compared to ₹1,077 crore in the previous year. Gross non-performing assets (NPA) jumped to 1.06% from 0.91% in the previous year. Net NPA reached 0.46% from 0.31% in the previous year. 

The company's assets under management grew 29% to ₹373,924 crore in the September quarter. 

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Brokerage Views: Jefferies maintained "buy" call while cutting target price to ₹8,400. The research firm said the Q2 earnings were in line and earning growth is expected to improve from FY26. While credit costs have stayed high, the management sees it falling in FY26, the research firm said. 

The company’s asset quality quality remained healthy with stable net interest margin (NIM), the brokerage added. Jefferies said the stock's valuations are reasonable at 3.8 times FY26 price to book and 20 times price to earnings. 

JPMorgan also maintained an "overweight" call and slashed the target price to ₹7,300. According to the brokerage firm, the Q2 credit overshot which put a strain on asset quality. The NBFC's loan growth is still robust at 29% growth and new business contribution at 2%-3%, the research firm noted.

The margin should stabilise as funding costs peak out, the brokerage said, adding that loan mix would remain adverse. 

Price Action: Shares of Bajaj Finance gained 4.94% to ₹7,008 on Wednesday morning. 

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