Bajaj Finserv Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Bajaj Finserv Ltd. (NSE:BAJAJFINSV) shareholders are probably feeling a little disappointed, since its shares fell 4.3% to ₹1,958 in the week after its latest full-year results. It looks like the results were a bit of a negative overall. While revenues of ₹1.3t were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 8.2% to hit ₹55.00 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Our free stock report includes 2 warning signs investors should be aware of before investing in Bajaj Finserv. Read for free now.

Taking into account the latest results, the most recent consensus for Bajaj Finserv from eight analysts is for revenues of ₹1.42t in 2026. If met, it would imply a meaningful 8.1% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 23% to ₹68.19. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹1.55t and earnings per share (EPS) of ₹73.23 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

View our latest analysis for Bajaj Finserv

Despite the cuts to forecast earnings, there was no real change to the ₹2,029 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Bajaj Finserv at ₹2,350 per share, while the most bearish prices it at ₹1,340. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Bajaj Finserv's revenue growth is expected to slow, with the forecast 8.1% annualised growth rate until the end of 2026 being well below the historical 20% p.a. growth over the last five years. Compare this to the 177 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 9.2% per year. So it's pretty clear that, while Bajaj Finserv's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Bajaj Finserv going out to 2028, and you can see them free on our platform here..

You still need to take note of risks, for example - Bajaj Finserv has 2 warning signs we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.