Bajaj Finance Shares Plunge 7% Amid Revised Growth Forecast

November 11, 2025 By usmanthotti business 2 min read

Bajaj Finance Shares Plunge 7% Amid Revised Growth Forecast

On November 11, 2025, Bajaj Finance shares experienced a significant decline of 7%, trading at ₹1,011.6 per share by 9:33 AM IST. This downturn followed the company’s announcement of a reduced growth forecast for the fiscal year 2026, which has raised concerns among investors and analysts.

Revised Growth Outlook

Bajaj Finance has adjusted its asset under management (AUM) growth projection for FY26 to 22-23%, down from the earlier estimate of 23-24%. This marks a further reduction from the initial 24-25% forecast at the beginning of the fiscal year. The revision is attributed to intensified competition in the mortgage sector, which constitutes 32% of the company’s total AUM, and a strategic decision to mitigate risks in the micro, small, and medium enterprises (MSME) segment, accounting for 12% of AUM.

Analyst Downgrades

In response to the revised guidance, several brokerage firms have downgraded Bajaj Finance’s stock. Emkay Global has shifted its rating from ‘Add’ to ‘Reduce’ and lowered the target price to ₹1,000 from ₹1,075 per share. The firm expressed concerns that the gradual moderation in growth and heightened competition could pressure yields and narrow the company’s valuation premium compared to its peers.

Similarly, JM Financial Institutional Securities downgraded the stock to ‘Add’ from ‘Buy’ but raised the target price to ₹1,140 from ₹1,060 per share. The brokerage adjusted its earnings per share (EPS) estimates downward by 3% for FY26 and 2% for FY27, reflecting the management’s revised guidance.

Market Impact

The announcement had a broader impact on the Indian stock market. Both the Nifty 50 and BSE Sensex indices fell by 0.31% each, with the financial sector being the primary drag. Bajaj Finance’s significant decline contributed notably to this downturn, overshadowing positive sentiments from potential U.S.-India trade agreements and the reopening of the U.S. government.

Investors are now closely monitoring Bajaj Finance’s strategic adjustments and market conditions to assess the company’s ability to navigate the competitive landscape and achieve its revised growth targets.