Strong Q2 operating numbers and plans to raise ₹17,500 crore through QIP and preferential warrants lift Bajaj Finance shares, while analysts track growth, capital strength and key technical levels

Bajaj Finance shares climbed more than 4 per cent in early trading on Monday after the non-banking financial company (NBFC) reported a strong business update for the second quarter of FY27 and announced plans to raise up to ₹17,500 crore through equity-linked fundraising.

The stock opened 1.5 per cent higher at ₹962.55 on the NSE and subsequently advanced to ₹995.80. The sharp move made Bajaj Finance one of the leading gainers in the Nifty 50 pack during the morning session.

The combination of healthy customer and loan growth, continued expansion in assets under management (AUM) and the proposed capital raise strengthened investor sentiment toward the company.

Customer Franchise Crosses 12.8 Crore

Bajaj Finance's customer franchise stood at 128.85 million as of September 30, 2026, according to the company's exchange filing.

The customer base increased approximately 16 per cent year-on-year and 3.5 per cent sequentially. The growth indicates continued expansion in the NBFC's lending ecosystem despite a challenging environment for financial stocks.

The scale of the customer franchise also gives Bajaj Finance a significant base from which it can cross-sell products and expand relationships across consumer, rural, SME and other lending segments.

New Loans Booked Rise 11%

The company booked 13.45 million new loans during Q2FY27, up 11 per cent from 12.17 million loans in the corresponding quarter of the previous financial year.

Growth in new loan bookings remains an important indicator for Bajaj Finance because it provides an early signal of customer demand and future loan growth.

The increase suggests that demand across the company's lending franchises remained resilient during the quarter, even as broader financial markets experienced volatility.

AUM Growth Beats Expectations

Bajaj Finance's assets under management expanded 26.5 per cent year-on-year to approximately ₹5.85 trillion at the end of September 2026, compared with ₹4.62 trillion a year earlier.

Motilal Oswal Financial Services said the AUM growth was higher than its estimate.

Strong AUM expansion remains one of the biggest positives in the quarterly update, as it indicates that the company's underlying lending franchise continues to expand at a healthy pace.

For investors, the next focus will be whether this rapid growth can be maintained while keeping asset quality, credit costs and profitability under control.

Deposit Book Reaches ₹69,750 Crore

Bajaj Finance's total deposits stood at ₹69,750 crore as of September 30, 2026.

The deposit franchise has become increasingly important for the company as it expands its balance sheet. A stronger deposit base can provide an additional source of funding and help diversify the company's liability profile.

Sustained deposit mobilisation will therefore remain an important metric to watch alongside AUM growth.

₹17,500-Crore Fundraise Plan

The company's board has approved a plan to raise up to ₹17,500 crore through a combination of a qualified institutional placement (QIP) and preferential issue of warrants.

Under the proposed structure, around ₹11,700 crore is expected to be raised through a QIP by issuing equity shares to qualified institutional buyers.

Another ₹5,800 crore will be raised through preferential warrants to Bajaj Finserv, the company's promoter and holding company. The final issue price for the preferential warrants will be determined at a later stage.

The fundraising will strengthen Bajaj Finance's capital base and provide additional resources to support future balance-sheet expansion.

Why the Capital Raise Matters

The proposed fundraising comes at a time when Bajaj Finance is continuing to grow its AUM at a strong pace.

Additional capital can provide greater flexibility to support loan growth, meet regulatory capital requirements and pursue future business opportunities.

For investors, the key question will be how effectively the additional capital is deployed and whether it translates into incremental earnings growth without putting pressure on returns on equity.

The QIP component also has the potential to broaden institutional participation in the stock, while the preferential warrants demonstrate continued promoter participation in the company's growth strategy.

Stock Rebounds After Recent Correction

Despite Monday's sharp recovery, Bajaj Finance shares have faced pressure in recent weeks amid weakness across the broader equity market.

According to technical analysis cited in the report, the stock had corrected nearly 20 per cent from its recent high before finding support around the 61.8 per cent Fibonacci retracement level near ₹936.

The stock's recovery from that level has improved its near-term technical setup, although analysts continue to advise caution until the broader downtrend is decisively broken.

₹936 Support and ₹1,020 Resistance in Focus

Harish Jujarey, AVP and head of technical equity research at Prithvi Finmart, identified ₹936 as an important support level for Bajaj Finance.

On the upside, the stock could face resistance around ₹1,020, which coincides with a downward-sloping trendline.

According to the technical view, the broader trend is likely to remain weak as long as the stock trades below this trendline.

This places the ₹936-₹1,020 zone at the centre of the near-term technical outlook. A sustained move above ₹1,020 could improve the technical structure, while a break below ₹936 could weaken the recovery.

Growth Versus Capital Efficiency

The latest business update presents a positive picture on growth, but investors will need to evaluate the quality and profitability of that growth.

AUM growth of 26.5 per cent is strong, while new loan bookings and customer additions also remain healthy. However, rapid balance-sheet expansion requires adequate capital and funding support.

The proposed ₹17,500-crore fundraise addresses part of that requirement, but the market will closely monitor margins, credit costs, asset quality and return ratios in the coming quarters.

The ability to maintain strong growth while protecting profitability will ultimately determine the sustainability of Bajaj Finance's valuation.

Key Numbers to Watch

The upcoming quarterly results will provide greater clarity on several important metrics:

• AUM growth and product-level performance

• New loan bookings and customer additions

• Deposit growth

• Net interest margin

• Credit costs and asset quality

• Capital adequacy following the proposed fundraise

• Return on equity

• Cost of funds

• Cross-selling and fee income

• Management's guidance for FY27

These indicators will help investors determine whether the strong Q2 business update translates into sustainable earnings growth.

Market Outlook

Bajaj Finance's Q2 business update has provided investors with several positives, particularly strong AUM growth, continued customer additions and higher new loan bookings. The ₹17,500-crore fundraising plan further strengthens the company's ability to support future expansion.

However, the stock's technical picture remains mixed after its recent correction. The ₹936 support level and ₹1,020 resistance zone will be important markers in the near term.

Fundamentally, the bigger question is whether Bajaj Finance can maintain its rapid growth while preserving asset quality, margins and capital efficiency. If the company delivers on these fronts, the latest capital raise could provide a stronger foundation for its next phase of expansion.

For investors, the story is therefore not simply about a 4 per cent one-day rally. The more important test will be whether strong Q2 growth, fresh capital and disciplined execution can turn the recent recovery into a sustainable uptrend.