Bajaj Housing Finance has successfully raised ₹509 crore through non-convertible debentures (NCDs) at an attractive 7.10% coupon rate, demonstrating strong investor confidence in the mortgage lender's growth prospects. The fundraising exercise was completed through private placement with institutional investors.

Bond Structure and Terms

The NCD issue carries specific terms that reflect the company's strong credit profile and market positioning:

Strong Operational Performance

The successful fundraising comes against the backdrop of robust business growth during the third quarter. The mortgage lender has demonstrated consistent expansion across key operational metrics, reflecting its strong market position and effective business strategy.

The company's assets under management reached ₹1.33 lakh crore as of December 31, 2025, representing a healthy 23% year-on-year growth. This expansion reflects the company's ability to attract customers and grow its loan portfolio in a competitive housing finance market.

Disbursement Growth Momentum

The third quarter witnessed particularly strong disbursement performance, with the company processing ₹16,500 crore in loans compared to ₹12,600 crore in the corresponding quarter of the previous year. This represents a substantial 31% increase, indicating robust demand for housing finance products and the company's enhanced market reach.

The timing of this NCD issuance aligns well with the company's growth trajectory, providing additional capital to support its expanding operations and meet the increasing demand for housing finance solutions. The competitive coupon rate of 7.10% reflects favorable market conditions and investor appetite for quality housing finance paper.

Bajaj Finance faces a cautious outlook from global brokerage firm Bernstein, which has turned negative on the non-banking financial company's prospects. The research house has expressed concerns about the company's ability to maintain its historically strong earnings momentum in the coming years.

Earnings Growth Projections

Bernstein's analysis indicates significant deceleration in the company's earnings trajectory. The brokerage firm projects that EPS growth will slow considerably from current levels.

Medium-Term Outlook Concerns

The brokerage house anticipates that Bajaj Finance will face pressure on its earnings growth guidance over the medium term. Bernstein expects the company's management to steadily lower down their earnings growth projections as market conditions and business dynamics evolve.

This negative stance from Bernstein represents a shift in sentiment toward one of India's prominent non-banking financial companies, which has historically delivered robust growth rates. The research house's expectations of sub-20% EPS growth mark a notable departure from the company's previous high-growth trajectory.

Analyst Perspective

Bernstein's revised outlook reflects broader concerns about the sustainability of aggressive growth rates in the financial services sector. The brokerage's expectation of gradually lowered earnings guidance suggests potential headwinds that could impact the company's performance metrics over the coming years.