Bajaj Finserv Maintains Neutral Stance, Target Price Revised to Rs 2000: Motilal Oswal Research
Bajaj Finserv Posts Strong Quarterly Numbers, Beats Estimates
Bajaj Finserv (BJFIN) has reported consolidated revenue of INR385.1 billion, a 6% year-over-year (YoY) increase, and profit after tax (PAT) of INR25.4 billion, a 13% YoY growth, for the fourth quarter (4Q) of fiscal year 2026 (FY26). The company's consolidated revenue for FY26 grew 13% YoY to INR1.5 trillion, while PAT rose 10% YoY to INR98 billion.
In a related development, Bajaj General (BGen) reported flat gross written premium (GWP) of INR43.2 billion, missing estimates by 9%. However, for FY26, BGen's GWP grew 8% YoY to INR233.3 billion. The company's PAT for the year was INR3.7 billion, a 2% YoY increase, which missed estimates by 26%. PAT for FY26 grew 6% YoY to INR19.5 billion.
Outlook and Recommendations
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Motilal Oswal has revised its estimates for Bajaj Finserv. On a consolidated basis, the company has increased its value of new business (VNB) margin estimates by 50 basis points (bps) for FY27 and 100 bps for FY28. Additionally, BJFIN's earnings per share (EPS) estimates have been increased by 1% for FY27 and 5% for FY28. The research firm has reiterated a Neutral recommendation for Bajaj Finserv, with a target price of INR2,000, based on sum of the parts (SoTP) valuation.
Consolidated Financial Performance Comparison
| Quarter | Revenue (INR billion) | PAT (INR billion) | YoY Growth |
|---|---|---|---|
| 4QFY26 | 385.1 | 25.4 | 6% |
| 4QFY25 | 362.5 | 22.5 | |
| FY26 | 1,500 | 98 | 13% |
| FY25 | 1,320 | 89 |
BGen Financial Performance Comparison
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| Year | GWP (INR billion) | PAT (INR billion) | YoY Growth |
|---|---|---|---|
| FY26 | 233.3 | 19.5 | 6% |
| FY25 | 216.3 | 18.9 | |
| FY26 | 43.2 | 3.7 | 8% |
| FY25 | 40.1 | 3.6 |
Investor Takeaway
Reiterate Neutral with a TP of INR2,000 (based on SoTP).
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