Bajaj Housing Finance Shares in Focus Amid Release of Q1FY26 Business Update

On July 4, 2025, Bajaj Housing Finance shares rose ~2%, reaching a day high of 124.00 at 10:15 AM, after opening at 122.35 on BSE. The gain in Bajaj Housing Finance shares follows the release of Q1FY26 business update. Bajaj Housing Finance Ltd (BHFL) has reported robust growth in its key lending metrics for the first quarter of FY26, according to provisional figures filed with stock exchanges on Wednesday.

Disbursements and AUM Saw Double-Digit Growth

BHFL's gross loan disbursements for Q1FY26 surged by 22% year-on-year, reaching ₹14,640 crore. This marks a substantial rise from ₹12,004 crore recorded during the same quarter of the previous fiscal year (Q1FY25), reflecting strong demand in the housing finance segment.

The company's Assets Under Management (AUM) rose sharply to approximately ₹1.20 lakh crore as of 30 June 2025, showcasing a 24% YoY growth from ₹97,071 crore a year ago. On a quarter-over-quarter basis, the AUM increased by nearly ₹5,716 crore, underlining continued portfolio expansion.

Loan Book Strengthens Further

BHFL's loan assets (asset receivables) climbed to ₹1.06 lakh crore, up from ₹85,283 crore in Q1FY25. This 24% YoY rise underscores the company’s strong momentum in home loan disbursement and growing borrower base. BHFL clarified that the disclosed numbers are provisional and subject to review during the company’s statutory audit process.

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Bajaj Housing Finance Q4 FY25 Earnings Highlights

Bajaj Housing Finance Ltd (BHFL) delivered a solid performance across key financial and operational metrics in Q4 FY25, driven by consistent growth, stable asset quality, and improving efficiency.

Assets Under Management (AUM) rose by 26% year-on-year during the quarter, highlighting sustained business momentum. Net profit (PAT) saw a significant 54% increase, contributing to a steady Return on Assets (ROA) of 2.4% (annualised).

BHFL maintained healthy asset quality, with Gross Non-Performing Assets (GNPA) at 0.29%, unchanged from the previous quarter. Net NPA (NNPA) stood at a low 0.11%, reflecting prudent credit underwriting and portfolio management.

The company continued to improve its cost structure, with Operating Expenses to Net Total Income (Opex/NTI) ratio declining to 21.7% in Q4 FY25, from 27.1% in Q4 FY24. This marks a significant gain in operational efficiency over the year. The Provisioning Coverage Buffer (PBC) remained strong at 63.28%, well above the regulatory requirement of 60.00%, reinforcing the company’s sound risk management framework.

As of 31 March 2025, BHFL held a liquidity buffer of ₹2,394 crore. Its Liquidity Coverage Ratio (LCR) stood at a healthy 191%, nearly double the regulatory requirement of 100%. The Cost of Funds remained in line with Q3 FY25 and is projected to decline in the coming quarters, offering further headroom for margin improvement.

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