Bajaj Housing Finance Limited (BHFL) has reported a strong financial performance for the first quarter of fiscal year 2026, with a 21% year-on-year increase in profit after tax. The company has also announced the full utilization of its Initial Public Offer (IPO) proceeds, demonstrating efficient capital deployment.

Financial Highlights

For Q1 FY26, BHFL posted a profit after tax of ₹583.00 crore, up from ₹483.00 crore in the same quarter last year. The company's assets under management (AUM) grew by 24% to reach ₹1,20,420.00 crore, compared to ₹97,071.00 crore in Q1 FY25.

Key financial metrics for the quarter include:

• Net interest income: ₹887.00 crore (33% YoY growth)
• Net total income: ₹1,012.00 crore (25% YoY growth)
• Profit before tax: ₹757.00 crore (20% YoY growth)

The company maintained a healthy asset quality with gross non-performing assets (GNPA) at 0.30% and net non-performing assets (NNPA) at 0.13% as of June 30, 2025.

IPO Proceeds Utilization

BHFL successfully completed the utilization of its IPO net proceeds, totaling ₹3,560.00 crore. The funds were deployed as follows:

• ₹3,499.55 crore for augmenting the capital base to meet future business requirements towards onward lending
• ₹60.45 crore for share issue expenses

The company completed the utilization ahead of the March 31, 2025 timeline mentioned in the offer document, with actual completion by December 31, 2024. No deviations from the original plan were reported.

Business Performance

BHFL's loan portfolio showed strong growth across various segments:

• Home Loans: 21% growth
• Loan Against Property: 30% growth
• Lease Rental Discounting: 29% growth
• Developer Finance: 32% growth

The company's AUM mix as of Q1 FY26 stands at:

Management Commentary

Atul Jain, Managing Director of Bajaj Housing Finance Limited, stated, "We have delivered a balanced quarter with 24% AUM growth, driven by our diversified product portfolio. Our focus on maintaining asset quality while expanding our business has resulted in a healthy financial performance."

Capital Adequacy and Credit Rating

As of June 30, 2025, BHFL's capital adequacy ratio stood at 26.94%, well above the regulatory requirement of 15%. The company continues to enjoy the highest credit rating of AAA/Stable for its long-term debt programme and A1+ for its short-term debt programme from CRISIL and India Ratings.

Conclusion

Bajaj Housing Finance Limited's Q1 FY26 results reflect its strong position in the housing finance sector, with robust growth in AUM and profitability. The full utilization of IPO proceeds ahead of schedule demonstrates the company's commitment to efficient capital management and its readiness to capitalize on future growth opportunities in the housing finance market.

Bajaj Housing Finance Limited (BHFL) has reported robust financial results for the first quarter of fiscal year 2026, while also announcing the complete utilization of its Initial Public Offering (IPO) proceeds.

Q1 FY26 Financial Highlights

BHFL's Assets Under Management (AUM) grew by 24% year-over-year to ₹120420.00 crore as of June 30, 2025, up from ₹97071.00 crore in the same period last year. The company's loan assets increased by 24% to ₹105954.00 crore.

Net interest income saw a significant rise of 33% to ₹887.00 crore in Q1 FY26, compared to ₹665.00 crore in Q1 FY25. Net total income grew by 25% to ₹1012.00 crore.

Profit after tax (PAT) increased by 21% to ₹583.00 crore, up from ₹483.00 crore in the corresponding quarter of the previous year. The company maintained a healthy Return on Assets (ROA) of 2.3% (annualized).

Asset Quality and Capital Adequacy

BHFL's asset quality remained strong, with Gross Non-Performing Assets (GNPA) at 0.30% and Net Non-Performing Assets (NNPA) at 0.13% as of June 30, 2025. The provisioning coverage ratio on stage 3 assets stood at 56%.

The company's capital position remained robust, with a capital adequacy ratio of 26.94% as of June 30, 2025, well above the regulatory requirement of 15%.

IPO Proceeds Fully Utilized

In a significant development, BHFL announced the full utilization of its IPO proceeds. The company had raised ₹3560.00 crore through a fresh issue in its IPO conducted in September 2024. According to the monitoring agency report by CARE Ratings Limited for the quarter ended June 30, 2025, 100% of the net proceeds have been deployed in line with the stated objectives.

The utilization breakdown is as follows:

Notably, BHFL completed the utilization ahead of the March 31, 2025 timeline mentioned in the offer document, with actual completion by December 31, 2024. No deviations from the original plan were reported.

Management Commentary

Atul Jain, Managing Director of Bajaj Housing Finance Limited, commented on the results, stating, "Our Q1 FY26 performance demonstrates the resilience and strength of our business model. The 24% growth in AUM and 21% increase in PAT reflect our ability to capitalize on market opportunities while maintaining robust asset quality."

He added, "The full utilization of our IPO proceeds ahead of schedule underscores our commitment to efficient capital deployment and positions us well for future growth in the housing finance sector."

Outlook

With a strong capital base, healthy asset quality, and a diversified product portfolio, Bajaj Housing Finance appears well-positioned to capitalize on the growing demand in India's housing finance market. The company's focus on digital initiatives and expansion into new markets is expected to drive further growth in the coming quarters.

As BHFL continues to navigate the competitive landscape, investors and stakeholders will be watching closely to see how the company leverages its strengthened financial position to capture market share and deliver sustainable returns.