Bajaj Finance shares jump 5% after Q2 business update. Why Jefferies sees 35% upside in its top pick?

Bajaj Finance's shares surged approximately 5% following the release of its provisional Q2 FY27 business update, which revealed a 26.5% year-on-year increase in assets under management (AUM) to nearly Rs 5.85 lakh crore. The company's AUM rose to Rs 993 per share, marking an end to a four-session losing streak. Bajaj Finance reported an AUM increase of Rs 37,800 crore in Q2 FY27, compared to Rs 4.6 lakh crore in the same quarter of the previous year.

As of September 30, 2026, the company's customer franchise consisted of 12.89 crore customers, up from 11.1 crore during the same period last year. Bajaj Finance added more than 44 lakh new customers during Q2 FY27. The company's new loans booked rose by 11% year-on-year to 1.345 crore in Q2 FY27, while deposits stood at Rs 69,750 crore at the end of Q2 FY27.

Bajaj Finance plans to raise Rs 17,500 crore through a Qualified Institutional Placement (QIP) and the issue of warrants to promoters. This marks the first equity capital raise by the company since November 2023. Jefferies reaffirmed its top picks status for Bajaj Finance, maintaining a 'Buy' recommendation and a target price of Rs 1,280, suggesting a 35% upside potential.