Bajaj Housing Finance Q1FY26 Net Profit Rises 21% YoY to ₹583 Cr; AUM Surges 24%

Pune, July 23, 2025: Bajaj Housing Finance Limited (BSE: 544252, NSE: BAJAJHFL) has reported a robust financial performance for the quarter ended 30 June 2025 (Q1FY26). The company’s standalone net profit increased by 21% year-on-year (YoY) to ₹583.30 crore, up from ₹482.61 crore in Q1FY25. This growth was largely attributed to a healthy expansion in the loan book and a significant rise in net interest income.

Following the announcement, the shares of Bajaj Finance closed 1.65% or ₹15.75 higher at ₹968.30. The shares made an intraday high of ₹970.95 and a low of ₹953.65.

Key Financial Highlights

 For Q1FY26, Bajaj Housing Finance saw its Interest Income rise to ₹2,492.59 crore, a 21% increase YoY and 5% quarter-on-quarter (QoQ). Total Income reached ₹2,618.45 crore, up 19% YoY and 4% QoQ. However, Loan Losses & Provisions saw a substantial increase of 310% YoY and 39% QoQ, reaching ₹41.09 crore. Despite this, Profit Before Tax grew by 20% YoY and 5% QoQ to ₹756.94 crore. Profit After Tax (PAT) for the quarter was ₹583.30 crore, representing a 21% YoY growth, though a marginal 0.6% decline QoQ. The Earnings Per Share (EPS) remained stable at ₹0.70 compared to the previous quarter.

Note: Figures are standalone. EPS is not annualised for interim periods. NII and NTI are disclosed in the press release.

Business Metrics & Asset Quality

• Assets Under Management (AUM) rose 24% YoY to ₹1,20,420 crore as of June 30, 2025.
• Loan Assets grew to ₹1,05,954 crore, compared to ₹85,283 crore a year earlier.
• Gross NPA stood at 0.30%, up slightly from 0.28% YoY.
• Net NPA was at 0.13%, compared to 0.11% YoY.
• Provision Coverage Ratio (PCR) on Stage 3 assets was 56%.
• Capital Adequacy Ratio stood strong at 26.94% vs the regulatory requirement of 15%.

Segment-Wise Income Breakdown: Q1FY26 (₹ in crore)

The Total Operating Revenue for Q1FY26 was ₹2,615.71 crore, primarily driven by Interest Income of ₹2,492.59 crore. Other significant contributions included Fees and Commission Income at ₹58.68 crore, Net Gain on Fair Value Change at ₹38.01 crore, Income on Derecognised Loans at ₹11.13 crore, and Sale of Services at ₹6.45 crore. Other Operating Income added ₹8.85 crore. When combined with Other Income of ₹2.74 crore, the Total Income amounted to ₹2,618.45 crore.

Regulatory Disclosures

The statutory auditors, Singhi & Co. and Mukund M. Chitale & Co., provided a limited review report with an unmodified opinion. Bajaj Housing Finance also confirmed no deviation in the utilisation of proceeds from its ₹3,560 crore IPO, which was completed in September 2024. The funds from the IPO were fully deployed for lending and capital expenditure as intended. Furthermore, the security cover for Non-Convertible Debentures (NCDs) remains compliant with SEBI regulations, maintaining a 1.002x security ratio as of 30 June 2025.

Management Commentary

“At Bajaj Housing Finance, our continued focus on prudent underwriting, operational efficiency, and customer-centric lending has translated into sustained growth momentum. Our AUM growth of 24% and 33% increase in NII reflect the strong demand for housing finance in both salaried and self-employed segments,” said Atul Jain, Managing Director, Bajaj Housing Finance Ltd.

Insights For Investors

Bajaj Housing Finance’s Q1FY26 performance demonstrates strong financial health, driven by a 24% YoY growth in AUM and a 21% rise in net profit. Despite a sharp 310% jump in provisions, asset quality remains solid with a low Gross NPA of 0.30% and Net NPA of 0.13%. The company’s healthy Capital Adequacy Ratio of 26.94% and rising interest income signal continued lending momentum. Investors may find confidence in the company’s stable margins, prudent risk management, and its efficient deployment of IPO proceeds, indicating long-term growth potential in the housing finance sector.

Strategic Outlook

With increasing urbanisation, improved affordability in housing, and sustained momentum in the residential real estate sector, Bajaj Housing Finance aims to deepen its market penetration, particularly in Tier 2 and Tier 3 cities. The company’s liquidity coverage ratio stands at 210.57%, which is well above the regulatory minimum, indicating a robust state of liquidity preparedness.

Bajaj Housing Finance Limited, a subsidiary of Bajaj Finserv, is a deposit-taking Housing Finance Company (HFC) registered with the NHB and listed on BSE and NSE. It offers mortgage-backed loans to salaried and self-employed individuals, corporates, and developers across India.

REF:https://nsearchives.nseindia.com/corporate/BHFL_23072025153733_Outcome.pdf

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