Bajaj Housing Finance , a leading player in India's housing finance sector, has reported impressive financial results for the first half of fiscal year 2026 (H1 FY26), demonstrating strong growth across key metrics.

Financial Highlights

The company has achieved its highest-ever half-yearly profit after tax (PAT) of ₹1,226 crore in H1 FY26, marking a significant 19% increase from ₹1,028 crore in H1 FY25. This growth is underpinned by robust performance in various financial indicators:

Operational Excellence

Bajaj Housing Finance has maintained a strong focus on operational efficiency and asset quality:

• Operating expenses to net total income improved to 20.3% from 20.7% year-on-year.
• The company maintains healthy asset quality with a Gross NPA of 0.26% and Net NPA of 0.12%.
• Its operations span 176 locations through 220 branches across 21 states and union territories.

Strategic Initiatives

The company's 'Sambhav Home Loans' business, launched for the near prime and affordable housing segment, is performing well. It currently operates across 67 urban locations and 72 tier IV/rural locations, showcasing the company's commitment to expanding its market reach.

Revised Guidance for FY26

Based on current market conditions, Bajaj Housing Finance has updated its guidance for FY26:

• AUM growth: 21-23%
• Return on Assets (ROA): 2.0-2.2%
• Return on Equity (ROE): 11-12%

Digital Transformation

The company continues to enhance customer experience through digital initiatives:

• E-agreement adoption has reached nearly 94%
• Online customer onboarding journey has achieved around 93% as of September 2025

Management Commentary

Sanjiv Bajaj, Chairman of Bajaj Housing Finance, stated in the company's half-yearly report, "Your Company has crossed Assets under Management (AUM) of ₹ 1,26,000 crore and recorded highest ever half yearly profit after tax during H1 FY26. [...] Your Company continues to build a sustainable and scalable mortgage business anchored on five strategic differentiators: a robust and scalable balance sheet; with a low-risk operating business model; delivering reasonable return to its stakeholders; through a full mortgage product suite; and backed by diversified borrowing mix."

The strong performance of Bajaj Housing Finance in H1 FY26 reflects the company's resilience and strategic focus in a competitive market. With its continued emphasis on digital transformation, expanding product offerings, and maintaining asset quality, the company appears well-positioned to capitalize on the growth opportunities in India's housing finance sector.

Bajaj Housing Finance , a prominent player in India's housing finance sector, has revised its growth projections and unveiled a set of ambitious medium-term financial targets during a recent conference call, signaling its strategic vision for the coming years.

Revised Growth Guidance

Bajaj Housing Finance has adjusted its Assets Under Management (AUM) growth guidance for FY26. The company now projects a growth rate of 21-23%, down from the previously announced 24-26%. This represents a reduction of approximately 3 percentage points from earlier expectations, indicating a more conservative outlook.

Key Financial Targets

The company has outlined several key objectives:

Focus on Asset Quality and Operational Efficiency

Bajaj Housing Finance's GNPA target of 40-60 basis points reflects the company's commitment to maintaining a high-quality loan book. This focus on asset quality is further underscored by the projected credit costs of 20-25 basis points, indicating the company's confidence in its risk assessment and management capabilities.

The company aims to improve its operational efficiency, targeting an operating expenses to net income ratio of 14-15% over the next 3-4 years. This goal suggests a strategic focus on cost management and productivity enhancement.

Capital Structure and Growth Plans

Bajaj Housing Finance has set a target gearing ratio of 7-7.5 times, to be achieved within 2-2.5 years. This target indicates the company's plans for balanced growth, leveraging debt while maintaining a robust capital structure.

Impact on Return on Equity

The company acknowledged that its capital raising plans for FY25 have contributed to a reduced return on equity. This suggests that Bajaj Housing Finance is prioritizing long-term growth and stability over short-term profitability metrics.

Regulatory Compliance and Transparency

As per the LODR (Listing Obligations and Disclosure Requirements) data, Bajaj Housing Finance continues to maintain transparency in its financial reporting. The company has informed the stock exchanges about the conference call and has made the presentation and audio recording available on its website, adhering to regulatory requirements.

Conclusion

Bajaj Housing Finance's revised growth guidance and medium-term targets reflect a strategic balance between growth, asset quality, and operational efficiency. The downward adjustment in AUM growth expectations suggests a more cautious approach in light of current market conditions. The company's continued focus on maintaining low NPAs and credit costs, while improving operational efficiency, indicates a prudent approach to expansion in the competitive housing finance sector. As Bajaj Housing Finance works towards these targets, investors and market observers will likely keep a close eye on its progress and the evolving dynamics of the Indian housing finance market.