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Bajaj Housing Finance recorded a 21% year-on-year increase in net profit, reaching INR 583 crore during the first quarter of FY26, supported by healthy loan demand and strong operational performance. Its total income rose 18% to INR 2,618 crore, and the loan book expanded nearly 24% to INR 1.20 lakh crore. Despite solid fundamentals, the company marginally revised its full-year loan book growth estimate downward, citing intensified competition and softer demand in the property market. Asset quality and liquidity buffers remained stable, and capital adequacy continued to stay well above regulatory norms.
Bajaj Housing Finance began the financial year on a firm note, reporting a 21% year-on-year increase in net profit to INR 583 crore for the April-June quarter. The company's revenue from operations also went up by 18% to INR 2,618 crore, reflecting consistent momentum in its lending business. Advertisement
The total assets under management (AUM) stood at INR 1.20 lakh crore, showing a 24% rise compared to the same period last year. This growth was largely backed by a 33% increase in net interest income (NII), which came in at INR 887 crore. Fee income also contributed to the topline performance. Pre-provision operating profit rose by 25%, indicating continued operating efficiency.
Despite the growth, the company has slightly lowered its AUM growth guidance for FY26 to 21-23%, compared to the ~26% growth achieved in the previous year. The management cited increased market competition and a relatively slower real estate market as key reasons for the revised projection.
Net interest margins (NIMs) are expected to decline marginally due to reduced income from treasury investments and fewer loan portfolio assignments. The impact of these factors is expected to reflect in the coming quarters, even though margins in the first quarter remained stable.
On the asset quality front, Bajaj Housing Finance maintained strong metrics. Gross non-performing assets (NPA) remained low at 0.30%, while net NPA was at 0.13%. The provision coverage ratio stood at 56%, reflecting a cautious and well-capitalised risk approach. The company's capital adequacy ratio remained healthy at 26.96%, far above the regulatory requirement.
The company also retained a strong liquidity position, with liquidity coverage ratio at over 200% and a debt-to-equity ratio of approximately 4.3. These levels provide a comfortable cushion for future funding requirements and potential market fluctuations.
The company's shares declined by around 1% after the results were announced, trading in the INR 121-122 range. The dip was largely attributed to the cautious growth outlook and expectations of softer margins, even as the financial performance remained solid. The stock has gained nearly 11% over the past six months but still trades below its 52-week high.
In the same quarter last year, the company had reported a net profit of INR 481 crore and a loan book of INR 97,365 crore, reflecting how far it has progressed operationally in just a year. Bajaj Housing Finance has consistently reported strong financials, with a disciplined focus on asset quality and operational efficiency, which has helped build investor confidence over time.
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