Bajaj Finserv Ltd. experienced a significant drop in its share price on Wednesday, declining over 5% despite the company reporting strong financial results for the fourth quarter and the full fiscal year ending March 31, 2025.
The stock traded around Rs 1,959.40, marking a sharp decrease from its previous close of Rs 2,066.90. This decline occurred even as the company announced a substantial increase in its consolidated net profit.
For the quarter ending March 2025, Bajaj Finserv reported a robust 14.1% year-on-year increase in its consolidated net profit, which reached Rs 2,416.6 crore compared to Rs 2,118.5 crore in the same period last year.
The company’s consolidated revenue also saw a healthy rise of 14.2%, climbing to Rs 36,595.4 crore from Rs 32,040.8 crore year-on-year. Furthermore, the company achieved a record quarterly operating profit of Rs 12,727.50 crore.
The positive performance extended throughout the financial year 2024-25. Bajaj Finserv’s consolidated net profit for the full year grew by 9%, rising to Rs 8,872 crore from Rs 8,148 crore in the previous fiscal year (FY24). Consolidated income for FY25 surged impressively to Rs 1,33,822 crore, a significant jump from Rs 1,10,383 crore recorded in FY24.
In addition to the strong earnings report, the Board of Directors recommended a dividend of Rs 1 per equity share, which represents a 100% payout based on the share’s face value.
This dividend payment, totaling Rs 159.67 crore, matches the amount distributed in the previous year and is subject to approval by shareholders at the upcoming Annual General Meeting.
Despite these strong consolidated financial figures and the dividend announcement, the market reaction was negative, with the stock price seeing a decline of 5.21% during the trading day.
While the company demonstrated significant growth in its consolidated operations, investors reacted cautiously, leading to the noticeable drop in share value following the earnings release.