profitfromit1@gmail.com

🏠 Bajaj Housing Finance – Q1 FY26 Result Highlights

Lesson 169/173 | 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.

Previous Lesson Next Lesson

Piyush Patel

Product Designer

4.75

Profile

Class Sessions