Bajaj Housing Finance Limited reported a 23% year-on-year increase in profit after tax to ₹715.28 crore for the quarter ended June 30, 2026, driven by record quarterly disbursements of ₹19,509 crore. The lender’s assets under management (AUM) grew by 24% to ₹1,49,624 crore, while return on average equity (ROE) improved to 12.5% from 11.6% in the prior year period. Despite strong top-line growth, management cautioned that net interest margin (NIM) is expected to moderate by 20–25 basis points in FY27 due to portfolio yield compression from book attrition.

The Board of Directors approved the unaudited financial results on July 29, 2026, in compliance with Regulation 30 and Regulation 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Joint statutory auditors Singhi & Co. and Mukund M. Chitale & Co. issued an unmodified limited review report on the financial statements prepared under Ind AS.

Financial Performance Highlights

Net interest income rose by 9% to ₹968 crore, while total income increased by 16% to ₹1,175 crore. Operating expenses as a percentage of net total income improved to 19.6% from 21.2% in the previous year, reflecting better cost efficiency. Loan losses and provisions dropped significantly by 58% to ₹16 crore. The cost of funds moderated by 7 basis points sequentially to 7.2%, while the NIM stood at 3.7%, down 14 bps from 3.8% in Q4 FY26.

Asset Quality and Capital Adequacy

The company maintained strong capital adequacy with a capital-to-risk-weighted assets ratio of 21.59%, well above the regulatory requirement of 15%. Provision coverage for stage-3 assets stood at 58.53%. Disbursements surged by 33% to ₹19,509 crore, led by growth in home loans, lease rental discounting (LRD), and developer finance segments. Stage-2 assets stood at ₹416 crore (0.32%), indicating controlled migration risks.

What the Numbers Show

The divergence between revenue growth and expense control highlights operational leverage. While interest expenses rose by 18%, operating expenses grew only marginally at 7%, allowing pre-provisioning operating profit to expand by 19%. The significant drop in loan provisions, coupled with stable GNPA levels, suggests that earlier provisioning buffers are now supporting earnings without compromising asset quality metrics. ROE improvement to 12.5% despite stable ROA at 2.3% indicates efficient equity utilization.

Portfolio Growth Drivers

Home loans constituted the largest share of AUM at ₹80,865 crore, growing by 20% year-on-year. Lease rental discounting emerged as a key growth engine, expanding by 41% to ₹34,604 crore. Developer finance also saw healthy growth of 19%, reaching ₹17,002 crore. Loans against property (LAP) grew by 22%. These segmental gains contributed to the overall 24% expansion in loan assets to ₹1,31,162 crore.

Management Guidance and Outlook

Managing Director Atul Jain and CFO Gaurav Kalani provided detailed guidance for FY27 during the earnings call. They projected NIM compression of 20–25 bps compared to FY26 levels, primarily driven by the attrition of higher-yielding older books being replaced by lower-yield new acquisitions in a stable interest rate regime. Operating efficiency is expected to remain between 19% and 20%. Asset quality is projected to remain healthy with GNPA in the range of 30–35 bps and credit costs between 10–15 bps. ROA is assessed to be in the range of 2.1% to 2.3%, with ROE expected between 12.5% and 13% for FY27.

Bajaj Housing Finance 's Debenture Allotment Committee, at its meeting held on 4 August 2026, allotted 1,88,500 Secured Redeemable Non-Convertible Debentures (NCDs) at a face value of ₹1,00,000 each, aggregating ₹1,885.0945 crore (including premium) on a private placement basis. The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The committee meeting commenced at 11.50 a.m. and concluded at 12.10 p.m.

Key Details of the NCD Allotment

The following table summarises the key terms and parameters of the allotted NCDs:

Security and Charge

The repayment of the debentures, interest thereon, Trustees' remuneration, and all other monies relating thereto will be secured by a first pari-passu charge on book debts/loan receivables. The security cover shall be equivalent to 1.00 time the aggregate outstanding value of debentures to be issued under the General Information Document dated 30 June 2026.

Coupon Payment Schedule

Interest on the NCDs will be paid annually, with the principal repaid at maturity. The scheduled payment dates are as follows:

No special rights, interests, or privileges are attached to the instrument, and there are no reported delays or defaults in payment of interest or principal. Details of any letters or comments regarding payment or non-payment are also not applicable at this stage.