Bajaj Housing Finance Limited delivered a robust performance in Q4 FY26, with assets under management (AUM) growing 23% to cross ₹140,000 crores during the quarter. The company reported strong growth across key metrics, including AUM addition of ₹7,294 crores compared to ₹6,370 crores in Q4 FY25, reflecting healthy business momentum despite competitive intensity in the housing finance sector.

Financial Performance

Profit before tax grew 20% while profit after tax increased 14% to ₹669 crores from ₹587 crores in the previous year. Excluding a one-time tax benefit of approximately ₹34 crores in Q4 FY25, normalized PAT growth would have been 20% for Q4 FY26. Operating efficiency improved significantly, with operating expenses to net total income ratio declining to 19.2% in Q4 FY26 from 21.8% in the last quarter of FY25. Annualized return on assets stood at 2.3% compared to 2.4% in Q4 FY25, while return on equity remained stable at 12.2% against 12.1% in the prior year.

Asset Quality and Margins

Asset quality remained healthy with gross non-performing assets stable at 27 basis points sequentially, showing improvement from 29 bps year-on-year. Net NPA remained at 11 bps, and annualized credit cost for the quarter was 19 bps. The net interest margin moderated to 3.8% in Q4 FY26 from 4% in Q3 FY26, a decline of 12 basis points, primarily due to portfolio yield reduction of 14 bps from lower acquisition pricing and portfolio attrition of higher rate book, partially offset by a 4 bps benefit in cost of funds.

Portfolio Composition and Funding

Portfolio composition remained well-diversified with home loans dominating at 54.1%, followed by lease rental discounting at 22.4%, loan against property at 10.8%, and developer finance at 11.5%. Disbursements grew 23% year-on-year to ₹17,506 crores from ₹14,250 crores. The cost of funds moderated by 60 bps year-on-year to 7.3% against 7.9% in Q4 FY25, with borrowing mix well-diversified across money market (49%), bank borrowings (41%), and NHB refinance (10%). The company maintained comfortable capital adequacy with capital adequacy ratio at 22.46% and priority sector business compliance at 60.88%, both above regulatory thresholds.

Bajaj Housing Finance has announced strong financial results for Q4, showcasing robust growth in profitability and revenue generation while maintaining stable asset quality metrics. The housing finance company demonstrated solid operational performance during the quarter, reflecting its strong market position in the sector.

Financial Performance Overview

The company's Q4 financial metrics show consistent growth across key parameters:

Asset Quality Metrics

Bajaj Housing Finance maintained stable asset quality during Q4, with key non-performing asset ratios remaining unchanged on a quarter-on-quarter basis:

Profitability Analysis

Bajaj Housing Finance recorded a net profit of 6.7 billion rupees in Q4, marking an improvement from the 5.87 billion rupees achieved in the corresponding quarter of the previous year. This year-on-year growth in net profit demonstrates the company's ability to maintain strong profitability while expanding its operations in the competitive housing finance market.

Revenue Growth and Credit Quality

The company's revenue performance was equally strong, with Q4 revenue reaching 29 billion rupees compared to 25.1 billion rupees in the same quarter last year. This revenue growth, combined with stable asset quality metrics, indicates robust business activity and disciplined lending practices. The unchanged GNPA and NNPA ratios at 0.27% and 0.11% respectively demonstrate effective risk management and portfolio quality maintenance during the quarter.