Fri Jul 25 05:10:00 UTC 2025: Here’s a summary of the provided text, followed by a news article rewrite:

**Summary:**

Bajaj Finance shares experienced a significant drop (6%) on Friday, July 25, despite reporting a 22% increase in consolidated net profit for the quarter ending June 30, 2025. While the company saw strong loan growth and increased revenue, concerns have arisen regarding higher credit costs, particularly in the MSME and 2W/3W segments. Several brokerage firms have downgraded or maintained cautious ratings on the stock, citing concerns about MSME loan stress, potential earnings downgrades, and leadership uncertainty. However, some brokerages maintain positive outlooks based on other financial metrics of Bajaj finance and their investments.

**News Article:**

**Bajaj Finance Shares Plunge Despite Profit Surge, Analyst Concerns Mount**

**Mumbai, July 25, 2025** – Shares of Bajaj Finance took a 6% dive today after the non-banking financial giant released its Q1 FY26 earnings report. While the company announced a 22% jump in consolidated net profit to Rs 4,765 crore, surpassing last year’s Rs 3,912 crore, and a 21% increase in revenue to Rs 19,524 crore, investor sentiment was dampened by underlying concerns.

The company reported strong growth in new loans booked (13.49 million), a 23% increase year-over-year. However, rising credit costs in the MSME (Micro, Small, and Medium Enterprises) and two-wheeler/three-wheeler loan segments are raising red flags. The company itself expects growth in these sectors to moderate significantly going forward.

Analyst reactions were mixed. JPMorgan downgraded Bajaj Finance to ‘neutral’, citing potential earnings downgrades due to MSME stress and weakness in 2W/3W loans. Bernstein maintained an ‘underperform’ rating, highlighting elevated credit costs and pressure on loan spreads. UBS also issued a ‘sell’ call, pointing to rising stress in the MSME segment and a lack of near-term leadership certainty. Macquarie joined the bearish sentiment, giving the stock an ‘underperform’ tag.

Conversely, Motilal Oswal maintained a ‘buy’ recommendation based on expansion in agency and digital channels driving overall growth.

The stock closed at Rs 901.8 on the NSE. Investors are advised to consult with certified financial experts before making any investment decisions regarding Bajaj Finance shares. The situation remains fluid as analysts continue to assess the long-term impact of these challenges on the company’s performance.

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