Bajaj Finance and Bajaj Housing Finance shares surge up to 7% on GST reform hopes and credit rating upgrade

Bajaj Finance and Bajaj Housing Finance shares surged up to 7% on hopes of GST reform and India's first sovereign credit rating upgrade in nearly two decades. Analysts expect the reforms to cut monthly instalment costs and expand lending volumes in key financing segments. The credit rating upgrade is expected to ease offshore borrowing costs for Indian financial firms.

July 02, 2025

Bajaj Finance and Bajaj Housing Finance shares surged up to 7% today, buoyed by hopes of GST reform and India's first sovereign credit rating upgrade in nearly two decades. The upgrade, from BBB-/Positive/A-3 to BBB/Stable/A-2 by S&P Global Ratings, is expected to ease offshore borrowing costs for Indian financial firms [2].

Analysts anticipate that the GST reforms could reduce monthly installment costs and expand lending volumes in key financing segments. The upgrade comes on the heels of an upward revision in India's sovereign credit rating from BBB- to BBB by S&P Global Ratings [2].

For Bajaj Housing Finance, the financial results for Q1FY26 showed a robust performance with assets under management growing by 24% to Rs 1,20,420 crore, net interest income increasing by 33% to Rs 887 crore, and net total income rising by 25% to Rs 1,012 crore. The company also reported a 20% increase in profit before tax to Rs 757 crore and a 21% increase in profit after tax to Rs 583 crore [1].

Bajaj Finance, which received the credit rating upgrade, saw its shares also gain traction. The upgrade is expected to have a positive impact on the company's financial health by lowering borrowing costs and enhancing its credit profile.

The market reaction underscores investor confidence in the potential benefits of these reforms and upgrades. Analysts are closely watching the developments to gauge their long-term impact on the financial sector.

References:
[1] https://www.icicidirect.com/research/equity/rapid-results/bajaj-housing-finance-ltd
[2] https://www.business-standard.com/markets/capital-market-news/bajaj-finance-receives-upgrade-in-issuer-credit-ratings-125081600185_1.html