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🏠 Bajaj Housing Finance – Q1 FY26 Result Highlights

Lesson 169/323 | Study Time: 10 Min

Course: Quarterly Result Updates & Analysis

🏠 Bajaj Housing Finance – Q1 FY26 Result Highlights

📅 Quarter Ended: 30 June 2025

🔍 1. Key Insights & Management Commentary

✅ 24% YoY AUM Growth to ₹1.2 Lakh Cr despite intense competition and a moderating real estate environment.
✅ PAT grew 21% YoY to ₹583 Cr.
✅ Asset quality remained pristine – GNPA: 0.30%, NNPA: 0.13%.
✅ Cost of Funds fell to 7.7%, improving interest margins.
✅ ROA steady at 2.3%, while ROE moderated to 11.6% due to capital raise in FY25.
✅ E-agreement penetration reached 93%, digital onboarding 88% – highlighting strong tech adoption.

📊 2. Financial Performance Snapshot

Particulars	Q1 FY26	Q4 FY25	Q1 FY25	YoY Growth
🔼 Revenue (Total Income)	₹2,618 Cr	₹2,508 Cr	₹2,209 Cr	18.5%
💰 Net Profit	₹583 Cr	₹587 Cr	₹483 Cr	20.7%
💸 Net Interest Income (NII)	₹887 Cr	₹772 Cr	₹665 Cr	33.4%
📈 Net Total Income (NTI)	₹1,012 Cr	₹995 Cr	₹810 Cr	25.0%
💼 Operating Expenses	₹214 Cr	₹208 Cr	₹170 Cr	25.9%
📊 Pre-Provision Op. Profit (PPoP)	₹798 Cr	₹787 Cr	₹640 Cr	24.7%

💹 3. Profitability & Key Ratios

Metric	Q1 FY26	Q4 FY25	Q1 FY25
🔄 ROA (%)	2.3	2.4	2.3
🔄 ROE (%)	11.6	12.1	14.3
📉 GNPA (%)	0.30	0.29	0.28
📉 NNPA (%)	0.13	0.11	0.11
⚠️ Credit Cost (%)	0.16	0.12	0.05
📈 EPS (₹)	0.70	0.70	0.62
💡 Opex to NTI (%)	21.2	21.7	21.0

🏗️ 4. Industry KPIs (Housing Finance Sector)

Disbursement Growth: 22% YoY to ₹14,651 Cr
AUM Composition:

Home Loans: 55.8%
Loan Against Property: 20.4%
Developer Finance: 11.9%
Lease Rental Discounting: 10.5%

Borrowing Mix: 53% Money Market, 37% Banks, 10% NHB
Liquidity Coverage Ratio (LCR): 211% vs required 100%
CRAR: 26.94% (Regulatory Min: 15%)

🔮 5. FY26 Outlook (Based on Current Run-Rate & Guidance)

Parameter	FY25 (Actual)	FY26E (Estimate)
Revenue Growth	26%	~22-24% 🟢
Profit Growth	26%	~20-22% 🟢
Profit Margin	22.7%	Maintain ~22-23%
AUM Growth	26%	24–26% (Guided)
ROA / ROE	2.3% / 13.4%	2.2% / 13–14%

📆 6. Near-Term & Long-Term View

Near-Term (Q2–Q3 FY26):

Competitive intensity to remain high; margins may remain flat.
Credit cost expected to stay below 20 bps due to low GNPA.

Long-Term (FY27–FY30):

Digital initiatives to enhance scale and reduce opex.
Market share gains expected in affordable housing and LRD segment.
Strong parentage from Bajaj Finserv ensures funding access and governance.

✅ 7. Investment Takeaway for Long-Term Investors

Positives:
✔️ Strong asset quality and underwriting
✔️ Robust digital footprint and scalable systems
✔️ High growth in AUM with profitability intact
✔️ Part of trusted Bajaj ecosystem

Risks:
⚠️ Margin pressure from competition
⚠️ Real estate demand moderation
⚠️ Rising bond yields may impact cost of funds

📌 Investment View: Cautiously Optimistic for long-term. Monitor growth momentum and credit cost in next 2–3 quarters.

📜 8. Disclosure

This analysis is provided solely for informational purposes and does not constitute investment advice. Investors should perform their own due diligence before making investment decisions.

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Piyush Patel

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