Target: ₹1,300CMP: ₹1,141.70Bajaj Finance’s Q1-FY27 PAT grew 28 per cent y-o-y to about ₹6,080 crore (in line). NII grew 23 per cent y-o-y to ₹12,570 crore (in line). Non-interest income stood at ₹2,650 crore (up 11 per cent y-o-y). Opex grew about 23 per cent y-o-y to ₹5,010 crore (in line). Pre-provision operating profit (PPoP) stood at ₹10,140 crore (in line), up 19 per cent y-o-y.Bajaj Finance reported an all-round strong quarter, with healthy performance across growth, asset quality, credit costs and margins. Borrowings costs remained stable despite a volatile macroeconomic environment.t At the same time, new growth engines, including digital platforms, rapid gold loan expansion and new business launches, provide incremental optionality. Bajaj Finance has also outlined a comprehensive roadmap to strengthen its competitive positioning through customer-centric growth, AI-led execution, portfolio diversification and disciplined risk management.Bajaj Finance trades at 3.9x FY28E P/BV and about 20x P/E. We model a PAT CAGR of around 30 per cent over FY26-FY28E and RoA/RoE of 4.2/21 per cent in FY28E. We believe the company is entering a phase of sustainable earnings compounding, driven by broad-based growth, resilient profitability and improving asset quality. We upgrade our rating on Bajaj Finance to Buy with a TP of ₹1,300 (premised on 4.8x FY28E BVPS).Published on July 31, 2026