Bajaj Housing Finance Reports Strong Q1 FY26 Performance, Fully Utilizes IPO Proceeds

2 min read     Updated on 24 Jul 2025, 03:31 PM
scanxBy ScanX News Team
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Overview

Bajaj Housing Finance Limited (BHFL) reported robust Q1 FY26 results with 24% AUM growth to ₹120420.00 crore, 33% increase in net interest income to ₹887.00 crore, and 21% rise in PAT to ₹583.00 crore. Asset quality remained strong with GNPA at 0.30% and capital adequacy ratio at 26.94%. The company announced full utilization of its ₹3560.00 crore IPO proceeds, completed ahead of schedule by December 31, 2024.

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*this image is generated using AI for illustrative purposes only.

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:

Purpose Amount (₹ crore)
Augmenting capital base to meet future business requirements towards onward lending 3499.55
Share issue expenses 60.45

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.

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Bajaj Housing Finance Reports 21% Profit Growth in Q1 FY26, Projects 21-23% AUM Growth for FY26

2 min read     Updated on 23 Jul 2025, 06:10 PM
scanxBy ScanX News Team
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Overview

Bajaj Housing Finance Limited (BHFL) reported a 21% year-on-year increase in profit after tax (PAT) to ₹583.00 crore for Q1 FY26. Assets Under Management (AUM) grew by 24% to ₹1,20,420.00 crore. Net Interest Income rose by 33% to ₹887.00 crore. The company maintained strong asset quality with Gross NPA at 0.30% and Net NPA at 0.13%. Capital Adequacy Ratio remained robust at 26.94%. BHFL provided FY26 guidance, projecting 21-23% AUM growth and 11-12% Return on Equity. The company continues to focus on expanding its presence in the housing finance sector through strategic initiatives and digital transformation.

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*this image is generated using AI for illustrative purposes only.

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:

Indicator Projection
AUM Growth 21-23%
Gross NPA 35-40 basis points
Return on Assets (ROA) 2.0-2.2%
Return on Equity (ROE) 11-12%

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.

Historical Stock Returns for Bajaj Housing Finance

1 Day5 Days1 Month6 Months1 Year5 Years
-2.21%-4.00%-3.87%+10.67%-29.08%-29.08%
Bajaj Housing Finance
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