Shares of Bajaj Finance Ltd. tumbled nearly 7% to Rs.997 on Tuesday, November 11, 2025, after the company’s Q2FY26 results, which showed robust earnings but a downward revision in growth outlook, dampened investor sentiment. The stock, which hit an intraday low of Rs.997 and a VWAP of Rs.1,012.57, was the top loser on the BSE, while Bajaj Finserv also declined over 6.5% to Rs.1,981, emerging as the second-biggest laggard in an otherwise steady market.

Bajaj Finance reported a 21.9% year-on-year rise in consolidated net profit to Rs.4,875 crore, supported by a 22% increase in net interest income (NII) to Rs.10,785 crore and a stable net interest margin (NIM) of 9.55%. The company’s assets under management (AUM) expanded 24% YoY to Rs.4.62 lakh crore, with sequential growth of Rs.21,000 crore, while new loans booked rose 26% YoY to 12.17 million. The deposit book increased to Rs.69,750 crore, reflecting strong customer confidence in its liability franchise.

Despite the healthy performance, the market reacted sharply to the management’s decision to trim its FY26 credit growth guidance to 22–23% from 24–25% earlier in the year. The move reflects rising competition in the mortgage business (32% of AUM) and risk containment in MSME loans (12% of AUM), both of which have moderated disbursement momentum. The company also guided that credit costs will remain near the upper end of its 1.85–1.95% range, signalling continued caution in unsecured lending.

Management noted that other verticals such as consumer B2C, gold loans, and mortgages are performing well and expected to drive incremental growth in the second half of FY26. Bajaj Finance also expects its cost of funds to moderate to 7.55–7.6%, aided by a calibrated shift toward NCDs, ECBs, and bank borrowings, as it optimises its liability mix.

Analysts said the stock’s steep fall was largely a reflection of tempered growth expectations and valuation concerns, as the market had priced in aggressive expansion. While operational metrics remain resilient, near-term sentiment is likely to hinge on management commentary around loan growth revival and the broader funding cost trajectory through H2FY26.