Bajaj Housing Finance Limited reported strong financial performance for FY26, driven by robust asset growth and improving operational efficiency. The housing finance company filed its investor presentation updated till June 2026 with the stock exchanges on August 18, 2026, disclosing key financial indicators that surpassed its initial assessment.

Assets under management (AUM) grew 23% year-on-year to ₹1,40,706 crore, exceeding the upper end of the management’s initial guidance range of 21-23%. Loan assets expanded by 24% to ₹1,23,745 crore. This growth trajectory positions the company as the second-largest housing finance company (HFC) in India, with a five-year CAGR of 29% since FY21, significantly outpacing peer HFCs which recorded CAGRs between 4% and 14%.

Financial Performance

The company’s profitability metrics showed consistent improvement across all key parameters. Net interest income (NII) rose 25% year-on-year to ₹3,752 crore, outpacing the 17% growth in interest income to ₹10,512 crore. This divergence indicates an expansion in net interest margins or favorable cost-of-funds dynamics. Pre-provisioning operating profit (PPOP) increased 25% to ₹3,524 crore, while operating expenses grew at a slower pace of 16% to ₹867 crore.

Net profit after tax stood at ₹2,560 crore, marking an 18% increase from ₹2,163 crore in the previous fiscal. Return on assets (ROA) improved to 2.3% from 2.4%, while return on equity (ROE) was recorded at 12.1%, slightly below the prior year’s 13.4% but within the guided range of 11-12%.

Asset Quality and Efficiency

Asset quality remained pristine, with gross non-performing assets (GNPA) declining to 27 bps from 29 bps in FY25, beating the guided range of 35-40 bps. Credit cost also remained low at 17 bps, well within the 15-20 bps guidance. The provision coverage ratio stood at healthy levels, reflecting the company’s conservative risk orientation.

Operational efficiency improved significantly, with the opex-to-net total income (NTI) ratio falling to 19.7% from 20.9% in FY25. This improvement was driven by digital initiatives and process optimization, aligning with the company’s strategic goal to reduce this ratio further to 14-15% over the medium term.

What the Numbers Show

A notable divergence exists between the growth rates of interest income and net interest income. While interest income grew 17%, NII expanded by 25%. This suggests that the company successfully managed its cost of funds, which grew only 13% to ₹6,760 crore. The ability to grow NII faster than top-line interest income indicates effective asset-liability management and pricing power in the current rate environment.

Additionally, the loan loss provision increased sharply by 229% to ₹191 crore from ₹58 crore in FY25. However, given the decline in GNPA and stable credit cost at 17 bps, this higher provisioning appears to be a prudent measure to maintain high coverage ratios rather than a response to deteriorating asset quality.

Strategic Outlook

Management has outlined a strategic construct focused on scale, low risk, and reasonable returns. The company aims to increase its market share in incremental home loan originations to 5% from the current 2.5-27%. Growth will be driven by expanding across all product segments—home loans, lease rental discounting (LRD), developer financing (DF), and loans against property (LAP)—while maintaining a balanced portfolio mix.

For FY27, management expects AUM growth of 21-23%, with NIM moderation of 20-25 bps. The opex-to-NTI ratio is targeted at 19-20%, and GNPA is expected to remain in the 30-35 bps range. The company plans to leverage digital capabilities and AI initiatives to enhance customer experience and operational controllership, supporting its ambition to become a large mortgage player in India.

Bajaj Housing Finance Limited has scheduled group meetings with institutional investors, funds, and analysts for August 20, 2026. The sessions will take place during the Bajaj Finserv Leadership Day 2026 in Pune, Maharashtra.

The company disclosed the schedule pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifically under Para A (15)(a) of Part A of Schedule III of the regulations.

Meeting details

The engagement with investors and analysts will be held in person. Management indicated that discussions will pertain strictly to publicly available information. The company noted that the schedule may change due to exigencies on the part of investors or the company.

Atul Patni, Company Secretary, signed the disclosure filed with both BSE Limited and the National Stock Exchange of India Limited on August 17, 2026.