Bajaj Finance, one of India’s leading non-banking financial companies (NBFCs), has announced its Q4 results for FY 2025, and the numbers are impressive. Along with strong profit growth, the company has revealed major shareholder-friendly initiatives, including a stock split, a 4:1 bonus issue, and a substantial dividend payout of Rs. 56 per share. These moves are designed to increase liquidity, make the stock more affordable, and reward long-term investors. In this article, we break down the company’s latest earnings, stock performance, and the impact of these corporate actions. Whether you’re a current shareholder or someone eyeing this stock, understanding these updates can help you make informed decisions. Let’s take a closer look at Bajaj Finance’s performance, how the stock has moved, and what it means for retail investors and market watchers alike.
Bajaj Finance Q4 Results and Announcements
In the fourth quarter of FY2025, Bajaj Finance reported a robust performance with a 19% year-on-year increase in net profit, reaching Rs. 4,546 crore. The company's Board approved significant shareholder rewards, including a 1:2 stock split, a 4:1 bonus issue, and a total dividend of Rs. 56 per share—comprising a final dividend of Rs. 44 and a special dividend of Rs. 12. These measures aim to enhance liquidity and make the stock more accessible to a broader investor base. The record date for these corporate actions is set for May 9, 2025, with the special dividend expected to be credited around May 26, 2025.
Key Highlights of Bajaj Finance Q4 Results for FY 2025
Bajaj Finance's Q4 FY2025 results showcased strong financial metrics. The net profit surged by 19% year-on-year to Rs. 4,546 crore, driven by a significant increase in net interest income and a healthy expansion of the loan book. The company added 4.7 million new customers during the quarter, reflecting its growing market presence. Operational efficiency improved, with the operating expense ratio declining to 33.1% of net total income. These results underscore Bajaj Finance's robust business model and its ability to deliver consistent growth.
Stock Split, Bonus Issue, and Dividend Announcements Details
Bajaj Finance announced a 1:2 stock split, reducing the face value of each share from Rs. 2 to Rs. 1, effectively doubling the number of shares held by investors. Additionally, a 4:1 bonus issue was declared, granting four bonus shares for every one share held. The company also declared a final dividend of Rs. 44 per share and a special dividend of Rs. 12 per share, totaling Rs. 56 per share for FY2025. These corporate actions are designed to reward shareholders and improve stock liquidity.
Bajaj Finance Stock Price Performance
Bajaj Finance's stock has demonstrated strong performance in 2025. As of May 2, 2025, the share price stood at Rs. 8,862.50, reflecting investor confidence in the company's growth trajectory. The stock's resilience is attributed to consistent financial performance, strategic initiatives, and shareholder-friendly policies. The recent announcements of stock split, bonus issue, and dividends have further bolstered investor sentiment, contributing to the stock's upward momentum.
Year-to-Date (YTD) Performance and Growth
Year-to-date, Bajaj Finance's stock has delivered impressive returns. Data from ACE Equity indicates a 29% YTD return as of April 8, 2025, positioning the company as a top performer in the finance and banking sector. This growth is fueled by robust financial results, strategic expansions, and effective risk management practices. The company's proactive approach to rewarding shareholders through dividends and stock adjustments has also played a significant role in enhancing investor value.
One-Year and Five-Year Returns of Bajaj Finance Stock
Over the past year, Bajaj Finance's stock has appreciated by approximately 30%, reflecting strong investor confidence and consistent financial performance. Looking at a longer horizon, the stock has delivered a remarkable 308% return over five years, showcasing its robust growth trajectory and effective business strategies. These returns underscore the company's ability to generate substantial shareholder value over both short and long-term periods.
Impact of Bajaj Finance’s Stock Split and Bonus Announcement
The stock split and bonus issue announced by Bajaj Finance are strategic moves aimed at enhancing stock liquidity and making shares more affordable for retail investors. By increasing the number of shares in circulation, these actions can lead to improved trading volumes and broader investor participation. Such measures often result in positive market sentiment, potentially driving the stock price upward due to increased demand. These initiatives reflect the company's commitment to shareholder value and market inclusivity.
How the Stock Split Affects Shareholders
The 1:2 stock split means that each existing share with a face value of Rs. 2 will be split into two shares with a face value of Rs. 1 each. For shareholders, this results in doubling the number of shares held, while the total investment value remains unchanged. This move enhances share affordability, making it more accessible to a wider range of investors, and can lead to increased trading activity and liquidity in the stock.
What the Bonus Share Issue Means for Investors
The 4:1 bonus issue implies that shareholders will receive four additional shares for every one share held. This increases the total number of shares owned without any additional investment. While the share price may adjust post-bonus to reflect the increased share count, the overall value of the investment remains the same. Bonus issues are often perceived positively, as they signal the company's strong financial health and commitment to rewarding shareholders.
Conclusion
Bajaj Finance's Q4 FY2025 results highlight its robust financial performance and strategic initiatives aimed at enhancing shareholder value. The company's announcements of a stock split, bonus issue, and substantial dividends demonstrate its commitment to rewarding investors and improving stock accessibility. With strong year-to-date and long-term stock performance, Bajaj Finance continues to solidify its position as a leading player in the financial sector. Investors can look forward to sustained growth and value creation in the coming years.
