Bajaj Finance 'bear' highlights the key risks to its bearish stance after Q4 update

Shares of Bajaj Finance Ltd. traded mixed after the NBFC reported its Q4 business update over the weekend, with growth largely in-line with expectations but some pressure on deposits.

Assets under management (AUM) crossed the ₹5 lakh crore milestone during the quarter. As of March 31, 2026, AUM stood at ₹5.10 lakh crore, up 22% YoY from ₹4.17 lakh crore.

For FY26, AUM growth came in at 22%, broadly in-line with management guidance.

However, the deposit book remained weak. Deposits stood at ₹68,550 crore at the end of Q4 FY26, down 4% YoY and 3.5% sequentially.

ALSO READ | Senco Gold surges 12% after strong Q4 update, FY27 outlook

On the operational front, new loans booked grew 20.5% YoY to 12.89 million in Q4 FY26 from 10.70 million a year ago. The customer franchise expanded to 119.33 million, adding 3.93 million customers sequentially.

Brokerage firm Macquarie has maintained an 'Underperform' rating on the stock with a price target of ₹860.

The brokerage said that, excluding the Covid-affected FY21, FY26 marks the slowest growth rate for Bajaj Finance in 15 years.

Macquarie added that as the company scales up, sustaining both growth and return on assets above 4.0% could become increasingly challenging. It also said that deposit growth has been moderating, with deposits declining from a peak of 20-22% to around 16% of total borrowings.

Key risks, according to the brokerage, include stronger-than-expected loan growth as well as further upside to margins and return ratios.