Bajaj Housing Finance Limited (BHFL) has reported a strong start to the fiscal year 2026, with a 21% year-on-year increase in profit after tax (PAT) for the first quarter ended June 30, 2025. The company's financial results, released on July 23, 2025, showcase robust growth in key metrics despite a challenging economic environment.

Financial Highlights

• Profit After Tax (PAT): Increased by 21% to ₹583.00 crore in Q1 FY26, up from ₹483.00 crore in Q1 FY25.
• Assets Under Management (AUM): Grew by 24% to ₹1,20,420.00 crore as of June 30, 2025, compared to ₹97,071.00 crore a year ago.
• Net Interest Income: Rose by 33% to ₹887.00 crore from ₹665.00 crore in the corresponding quarter last year.
• Net Total Income: Increased by 25% to ₹1,012.00 crore, up from ₹810.00 crore in Q1 FY25.

Asset Quality and Capital Adequacy

BHFL maintained a strong asset quality profile:

• Gross Non-Performing Assets (GNPA): Stood at 0.30% as of June 30, 2025, compared to 0.28% a year ago.
• Net Non-Performing Assets (NNPA): Increased slightly to 0.13% from 0.11% in the previous year.
• Capital Adequacy Ratio: Remained robust at 26.94%, well above the regulatory requirement of 15%.

Operational Performance

• Operating Expenses to Net Total Income: Marginally increased to 21.2% in Q1 FY26 from 21.0% in Q1 FY25.
• Loan Losses and Provisions: Increased to ₹41.00 crore from ₹10.00 crore in the same quarter last year.

Management Outlook for FY26

The company has provided guidance on key financial indicators for the fiscal year 2026:

The AUM growth projection is slightly moderated from the medium-term guidance of 24-26% due to competitive pricing and increased portfolio attrition. The ROE projection is lower than the medium-term guidance due to the equity overhang from capital raises in FY25.

Strategic Initiatives

BHFL continues to focus on expanding its presence in the housing finance sector:

• Investing in Small Business Unit (SBU) and non-metro markets.
• Maintaining a diversified product portfolio with home loans constituting 55.8% of the AUM.
• Leveraging digital initiatives, with e-agreement penetration at 93% and online customer onboarding at 88% in June 2025.

Market Position

The company maintains its position as one of the largest non-deposit taking Housing Finance Companies in India, offering a full suite of mortgage products. BHFL 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.

Atul Jain, Managing Director of Bajaj Housing Finance Limited, commented on the results, stating, "Our Q1 FY26 performance demonstrates the resilience of our business model and the strength of our diversified portfolio. While we anticipate some moderation in growth due to market dynamics, we remain committed to maintaining a balanced approach to growth and profitability."

As Bajaj Housing Finance navigates through FY26, the company's focus on maintaining asset quality, operational efficiency, and strategic growth initiatives is expected to play a crucial role in achieving its financial targets amidst evolving market conditions.

Bajaj Housing Finance Limited , a prominent player in India's housing finance sector, has reported a robust financial performance for the first quarter of the fiscal year. The company's net profit saw a significant year-over-year increase of 21%, rising from ₹4.83 billion to ₹5.83 billion.

Revenue Growth

The company's revenue also showed strong growth, climbing to ₹26.2 billion in Q1, up from ₹22 billion in the same period last year. This represents a 19% increase in top-line performance, indicating solid business expansion and market demand for the company's financial products.

Key Financial Metrics

Bajaj Housing Finance's financial results reveal several noteworthy aspects of its performance:

Profitability and Efficiency

• Profit Before Tax: Increased by 20% to ₹757 crore, compared to ₹630 crore in the same quarter of the previous fiscal year.
• Return on Assets (ROA): Remained stable at 2.3% (annualized), indicating consistent operational efficiency.
• Return on Equity (ROE): Stood at 11.6% (annualized), reflecting the company's ability to generate returns for shareholders.

Asset Quality and Capital Adequacy

Bajaj Housing Finance maintained a strong asset quality profile, although with slight increases in non-performing assets:

• Gross Non-Performing Assets (GNPA): Marginally increased to 0.30% from 0.28% a year ago.
• Net Non-Performing Assets (NNPA): Slightly up at 0.13%, compared to 0.11% in the previous year.
• Provision Coverage Ratio: Stood at a healthy 56% for stage 3 assets.
• Capital Adequacy Ratio: Improved to 26.94%, well above the regulatory requirement of 15%.
• Annualized Credit Cost: 0.16%

Liquidity and Market Position

The company reported a strong Liquidity Coverage Ratio of 210.57%, significantly higher than the regulatory requirement of 100%. This indicates robust liquidity management and the ability to meet short-term obligations.

Bajaj Housing Finance continues to enjoy the highest credit ratings of AAA/Stable for its long-term debt programme and A1+ for its short-term debt programme from CRISIL and India Ratings, underlining its strong financial position and market credibility.

Portfolio Composition and Operational Reach

The company's diversified portfolio comprises:

• 55.8% home loans
• 20.4% lease rental discounting
• 11.9% loan against property
• 10.5% developer finance

Bajaj Housing Finance operates across 21 states/UTs with 217 branches covering 175 locations, demonstrating a wide operational reach.

Cost Management and Future Outlook

The company's cost of funds reduced by 21 basis points to 7.7% on a sequential basis, indicating improved financial efficiency.

Due to competitive market conditions, management has moderated the FY26 AUM growth guidance to 21-23% from the medium-term target of 24-26%.

The company's board of directors approved these unaudited financial results at a recent meeting. The results demonstrate Bajaj Housing Finance's resilience and growth in a competitive market, positioning it well for continued expansion in the housing finance sector despite some moderation in the real estate market and competitive pricing pressures.