Bajaj Housing Finance Reports 18% PAT Growth in Q2 FY26, AUM Expands 24%

Bajaj Housing Finance Limited (BHFL) has reported a robust financial performance for the second quarter of fiscal year 2026, with significant growth in key metrics despite a challenging market environment.

Strong Asset Growth and Profitability

BHFL's Assets Under Management (AUM) grew by 24% year-over-year to ₹1,26,749.00 crore as of September 30, 2025, up from ₹1,02,569.00 crore in the corresponding quarter of the previous year. This growth was accompanied by a 26% increase in loan assets, which reached ₹1,13,059.00 crore.

The company's profitability showed resilience, with Profit After Tax (PAT) rising 18% to ₹643.00 crore in Q2 FY26, compared to ₹546.00 crore in Q2 FY25. Profit Before Tax (PBT) also saw an 18% increase, reaching ₹833.00 crore.

Revenue and Income Growth

Net interest income surged by 34% to ₹956.00 crore, while net total income grew by 22% to ₹1,097.00 crore. This growth was supported by a 17% increase in interest income, which stood at ₹2,614.00 crore for the quarter.

Operational Efficiency and Asset Quality

BHFL demonstrated improved operational efficiency, with the Operating Expenses to Net Total Income ratio decreasing to 19.6% in Q2 FY26 from 20.5% in the same quarter last year. This improvement reflects the company's focus on cost management and digital initiatives.

The company maintained strong asset quality, with Gross Non-Performing Assets (GNPA) at 0.26% and Net Non-Performing Assets (NNPA) at 0.12% as of September 30, 2025. The provision coverage ratio on stage 3 assets stood at a healthy 55.64%.

Capital Adequacy and Liquidity

BHFL's capital position remained robust, with a Capital Adequacy Ratio of 26.12% as of September 30, 2025, well above the regulatory requirement of 15%. The company's strong capital base provides a solid foundation for future growth.

Business Segment Performance

The company's portfolio remained well-diversified:

Segment	AUM (₹ crore)	YoY Growth
Home Loans	69,845.00	19%
Loan Against Property	12,985.00	29%
Lease Rental Discounting	27,290.00	35%
Developer Finance	14,928.00	25%

Home loans continued to be the largest segment, constituting 55.1% of the total AUM.

Management Commentary

Atul Jain, Managing Director of Bajaj Housing Finance Limited, stated, "Our Q2 FY26 results demonstrate the resilience of our business model and our ability to grow sustainably in a competitive market. We have maintained our focus on asset quality while expanding our reach and improving operational efficiencies."

Outlook

While BHFL has shown strong growth, the company has moderated its AUM growth guidance for FY26 to 21-23%, down from the medium-term target of 24-26%. This adjustment reflects the current market dynamics, including heightened competitive intensity in the prime home loans segment and potential moderation in real estate demand.

The company continues to focus on expanding its branch network and increasing its retail book share, aiming to have 250 branches by FY27 and grow its retail book share to above 55%.

With its strong financial performance, robust asset quality, and strategic growth initiatives, Bajaj Housing Finance Limited appears well-positioned to navigate the evolving market landscape and capitalize on opportunities in the housing finance sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.18%	-0.57%	-1.37%	-8.19%	-20.80%	-33.59%

Bajaj Housing Finance Limited (BHFL) has reported a robust performance for the second quarter of fiscal year 2026, with significant growth in key financial metrics.

Financial Highlights

Profit After Tax (PAT): BHFL's profit after tax increased by 18% year-over-year to ₹643.00 crore in Q2 FY26, up from ₹546.00 crore in Q2 FY25.
Net Interest Income (NII): The company saw a substantial 34% growth in NII, reaching ₹956.00 crore compared to ₹713.00 crore in the same quarter last year.
Assets Under Management (AUM): AUM grew by 24% to ₹1,26,749.00 crore as of September 30, 2025, from ₹1,02,569.00 crore a year ago.
Loan Assets: The company's loan assets expanded by 26% to ₹1,13,059.00 crore, up from ₹89,878.00 crore in the previous year.

Key Performance Indicators

Metric	Q2 FY26	Q2 FY25	YoY Growth
Net Total Income	₹1,097.00 crore	₹897.00 crore	22%
Profit Before Tax	₹833.00 crore	₹708.00 crore	18%
Profit After Tax	₹643.00 crore	₹546.00 crore	18%

Asset Quality and Capital Adequacy

BHFL maintained a strong asset quality with Gross NPA and Net NPA ratios at 0.26% and 0.12% respectively as of September 30, 2025. The provisioning coverage ratio on stage 3 assets stood at approximately 56%.

The company's capital position remained robust, with a capital adequacy ratio (including Tier-II capital) of 26.12% as of September 30, 2025, well above the regulatory requirement.

Operational Efficiency

The company improved its operational efficiency, with the Operating Expenses to Net Total Income ratio decreasing to 19.6% in Q2 FY26 from 20.5% in Q2 FY25.

Credit Ratings

Bajaj Housing Finance continues to enjoy the highest credit ratings, with AAA/Stable for its long-term debt programme and A1+ for its short-term debt programme from CRISIL and India Ratings.

Management Commentary

Atul Jain, Managing Director of Bajaj Housing Finance Limited, stated, "Our strong performance in Q2 FY26 reflects the resilience of our business model and the growing demand in the housing finance sector. The significant growth in our loan assets and profitability underscores our commitment to delivering value to our stakeholders while maintaining robust asset quality."

The company's board of directors approved these unaudited financial results at a meeting held on November 6, 2025. As Bajaj Housing Finance continues to expand its loan portfolio and maintain strong financial metrics, it remains well-positioned in the competitive housing finance market.