Bajaj Housing Finance (BAJAJHFL) Q1 25/26 earnings summary

Executive summary

• AUM grew 24% year-over-year to ₹1,20,420 crore, with PAT up 21% to ₹583 crore and ROA steady at 2.3%.

• Asset quality remained robust: GNPA at 0.30%, NNPA at 0.13%, and annualized credit cost at 0.16%.

• Disbursements grew 22% year-over-year, reaching INR 14,651 crore, with a well-diversified portfolio and dominant home loan share.

• Unaudited financial results for the quarter ended 30 June 2025 were approved, with a limited review report carrying an unmodified opinion from joint statutory auditors.

• Opex to NTI was flat at 21.2% versus 21.0% in Q1 FY25; PBC at 61.71%, above regulatory requirement.

Financial highlights

• Net interest income rose 33% year-over-year to ₹887 crore; net total income up 25% to ₹1,012 crore.

• Operating expenses grew 26% to ₹214 crore; loan losses and provisions rose to ₹41 crore from ₹10 crore in Q1 FY25.

• Net worth at ₹20,508 crore; capital adequacy ratio at 26.94% (Tier-1: 26.43%).

• Liquidity buffer at ₹3,079 crore; LCR at 211% versus 100% regulatory requirement.

• Earnings per share (basic and diluted) for the quarter were ₹0.70, up from ₹0.62 in Q1 FY25.

Outlook and guidance

• FY26 AUM growth expected at 21%-23%, revised down from previous 24%-26% due to competitive pressures and real estate moderation.

• NIM/NTI may moderate by 15-20 bps due to lower investment and assignment income.

• ROA expected in the 2%-2.2% range; ROE to moderate to 11%-12% due to excess capital.

• OpEx to NTI ratio expected to remain flat at 20%-21%.

• GNPA, credit cost, and PCR expected to remain within medium-term guidance.