Synopsis:
Bajaj Housing Finance reported strong year-on-year growth in Q1 FY26, with revenue up 18.4 percent and net profit rising 20.7 percent. However, sequential results remained muted as net profit dipped 0.7 percent sequentially. AUM grew 24 percent to Rs. 1.2 lakh crore, while net interest income surged 33 percent.
A leading mortgage lender remained steady in trade after reporting its Q1 FY26 results, with investors reacting cautiously to stable profitability and a strong uptick in key lending metrics. Despite a marginal dip in net profit on a sequential basis, the company reported strong year-on-year growth and robust operational performance.
The company in focus is Bajaj Housing Finance Ltd, a wholly owned subsidiary of Bajaj Finance Limited. It currently has a market capitalization of Rs. 1,00,779.59 crore. The stock opened at Rs. 122.05 and slipped to a low of Rs. 120.80 compared to its previous close of Rs. 122.25, marking a mild decline of 1.2 percent intraday.
What’s the News?
Quarter-on-Quarter Performance, for the quarter ended June 2025, Bajaj Housing Finance reported a 4.3 percent increase in Revenue from Operations from Rs. 2,508 crore to Rs. 2,616 crore.
Financing profit rose 4.6 percent to Rs. 765 crore from Rs. 731 crore. Profit before tax increased 5.1 percent from Rs. 720 crore to Rs. 757 crore. However, net profit slipped slightly by 0.7 percent from Rs. 587 crore to Rs. 583 crore. The company’s financing margin for the quarter stood at a healthy 29 percent, while the debt-to-equity ratio was 4.31.
Year-on-Year Performance, Compared to the same quarter last year, Bajaj Housing Finance posted strong growth across key financial metrics. Revenue grew 18.4 percent from Rs. 2,209 crore to Rs. 2,616 crore.
Financing profit rose 19.5 percent from Rs. 640 crore to Rs. 765 crore. Profit before tax increased 20.1 percent from Rs. 630 crore to Rs. 757 crore, and net profit rose 20.7 percent from Rs. 483 crore to Rs. 583 crore, showcasing a consistent improvement in bottom-line performance.
Operational Highlights
Assets under management (AUM) rose 24 percent year-on-year to Rs. 1,20,420 crore as of June 30, 2025, compared to Rs. 97,071 crore a year ago. Net interest income for the quarter stood at Rs. 887 crore, up 33 percent from Rs. 665 crore in Q1 FY25.
Loan losses and provisions rose to Rs. 41 crore in Q1 FY26, compared to Rs. 10 crore in the same period last year. The company maintained a capital adequacy ratio of 26.94 percent. Bajaj Housing Finance continues to enjoy the highest long-term credit rating of AAA/Stable from both CRISIL and India Ratings.
The AUM mix as of June 2025 comprised 55.8 percent home loans, 20.4 percent lease rental discounting (LRD), 11.9 percent developer finance (DF), 10.5 percent loans against property (LAP), and 1.4 percent others, indicating a well-diversified loan book.
About the Company
Bajaj Housing Finance Limited, founded in 2008, is a non-deposit-taking housing finance company registered with the National Housing Bank since 2015. The company provides home loans, loans against property, developer finance, and lease rental discounting to individuals, corporates, and HNIs.
Its offerings are tailored for residential and commercial property purchases, renovations, and business expansion, making it a key player in the Indian mortgage lending space.
Written By Manan Gangwar
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