Bajaj Finserv shares rise over 2% after Q1 earnings. Here’s why Motilal Oswal upgrades to Buy, raises target price

The shares of Bajaj Finserv gained 2.5% to Rs 2,078 on the BSE on Monday as brokerages upgraded their rating and raised target prices for the stock after the company reported a 12% YoY rise in net profit to Rs 3,123 crore for the April-June quarter of the ongoing financial year 2027.

Bajaj Finserv’s revenue from operations rose 19% YoY to Rs 42,037 crore, while interest income increased over 18% YoY to Rs 22,362 crore. The company said that Bajaj Finance‘s total customer franchise increased by 51 lakh and the number of new loans booked rose by 161 lakh in the first quarter of FY27.

In the insurance business, Bajaj General saw an 11% growth in gross written premium to Rs 5,789 crore. Bajaj Life, meanwhile, recorded a sharp growth of 87% in the value of new business, in line with its strategy of sustainable and profitable growth, despite the impact of non-availability of GST credit in the current quarter, Bajaj Finserv said.

Among its emerging businesses, Bajaj Asset Management, which was formerly known as Bajaj Finserv Asset Management, saw its assets under management (AUM) at Rs 31,444 crore as of June 30, 2026.

Also read | Bajaj Finserv Q1 Results: Net profit rises 12% YoY to Rs 3,132 crore

Motilal Oswal on Bajaj Finserv share price

Motilal Oswal upgraded its rating on the shares of Bajaj Finserv to ‘Buy’ and raised its target price to Rs 2,490 apiece, implying around 23% upside potential from the stock’s previous closing price of Rs 2,029 apiece on NSE.

The domestic brokerage said that the company delivered a strong performance across its subsidiaries. It added that Bajaj Finserv is operating in a phase where growth is increasingly broad-based, with Bajaj Finance providing earnings stability, insurance businesses transitioning into margin-led, value-accretive growth, and new digital platforms moving closer to scale and breakeven.

“Supported by improving trends across its established lending and insurance subsidiaries, along with rising profitability in new businesses, we believe Bajaj Finserv is well placed to capitalise on the financial ecosystem opportunity,” it further said, while increasing its earnings estimates for the company.

Bajaj Finserv share price

Bajaj Finserv shares rallied more than 6% on Friday after the Q1 earnings. The stock has gained over 7% in a month but has fallen marginally in 2026 so far. It has risen around 6% in a year.

In the longer term, Bajaj Finserv shares have jumped 36% in three years and more than 42% in five years. The company has a market capitalisation of more than Rs 3.25 lakh crore.

Also read | Bajaj Finserv Q1 net up on NBFC strength

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