Bajaj Housing Finance Reports Strong Q1 FY26 Performance, Fully Utilizes IPO Proceeds
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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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.
Historical Stock Returns for Bajaj Housing Finance
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-2.21% | -4.00% | -3.87% | +10.67% | -29.08% | -29.08% |