Bajaj Finserv Shares Rebound Following Q2 Profit Rise, Though Analysts Adjust Targets Over Insurance Concerns

Bajaj Finserv shares saw an uptick following the release of its Q2FY27 financial results, which showed a 25 percent increase in consolidated profit after tax. However, multiple brokerages trimmed their price targets, citing regulatory overhangs, rising claims in the general insurance segment, and cautions from management regarding future margin expansions.

Shares of Bajaj Finserv saw a recovery on Wednesday following the release of the company’s second-quarter results. The stock rose 1.85 per cent to ₹1,749.80 on the NSE by mid-morning, touching a session high of ₹1,793.60. Over 11.49 lakh shares changed hands, with the traded value crossing ₹202 crore by late morning. Despite the intraday rebound, the stock remains well below its 52-week high of ₹2,126.80 recorded in November 2025.

The market reaction follows the announcement of Bajaj Finserv’s Q2FY27 results. The company reported a 25 per cent year-on-year rise in consolidated profit after tax (PAT) to ₹5,952 crore, while consolidated total income climbed 17 per cent to ₹43,416 crore. These headline figures were largely anchored by subsidiary Bajaj Finance, where consolidated PAT grew 29 per cent year-on-year to ₹6,367 crore. Analysts noted that Bajaj Finance continues to account for roughly 78 per cent of the sum-of-the-parts valuation for the group.

In contrast, the insurance segment presented a mixed financial picture. Bajaj Life Insurance reported a strong quarter, with the net value of new business rising 40 per cent to ₹512 crore and the VNB margin expanding by 460 basis points to 21.7 per cent. However, company management cautioned that this pace of expansion is unlikely to be repeated in subsequent quarters.

Meanwhile, Bajaj General Insurance posted a 19 per cent year-on-year decline in PAT to ₹420 crore. The drop was driven by an increase in the claims ratio, which rose to 83.7 per cent from 75.8 per cent in the corresponding quarter of the previous year, impacted by catastrophe-related motor claims and a heavy tender business mix.

Following these mixed insurance results and financial disclosures, major brokerages retained their buy ratings on the stock but trimmed their price targets. Motilal Oswal maintained its target at ₹2,370, pointing to strong execution at Bajaj Finance and improving life insurance margins. JM Financial lowered its target from ₹2,670 to ₹2,343, highlighting an IRDAI consultation paper on distribution economics as a near-term overhang for the insurance subsidiaries. Similarly, Jefferies reduced its target from ₹2,550 to ₹2,300, citing regulatory uncertainty regarding commissions alongside weaker capital gains resulting from soft equity markets.

"The financial performance of diversified conglomerates like Bajaj Finserv highlights the importance of having a strong core earnings anchor, in this case, Bajaj Finance. While strong subsidiary performance can drive headline growth and initial market rebounds, investors and analysts closely monitor auxiliary sectors like insurance for regulatory changes and operational risks. Regulatory shifts and rising claims ratios can quickly temper market enthusiasm, demonstrating why brokerages often recalibrate targets despite positive overall profit figures." — Dr. Shishir Gupta, Founder & CEO, StartupLanes