Bajaj Housing Finance (BAJAJHFL) Q3 24/25 earnings summary

Executive summary

• Assets under management grew 26% year-over-year to INR 108,314 crore as of 31 December 2024, with PBT and PAT up 25% year-over-year to INR 713 crore and INR 548 crore, respectively; asset quality remained robust with GNPA at 0.29% and NNPA at 0.13%.

• Operating efficiencies improved, with OPEX to NIM/NTI at 19.8% versus 23.2% in Q3 FY24.

• Disbursement growth was 17% year-over-year, and a new SBU for near-prime and affordable customers has started gaining traction.

• Capital adequacy ratio remained strong at 27.86% as of 31 December 2024, following recent capital raises.

Financial highlights

• Net interest income and net total income grew 25% year-over-year, with NII at ₹806 crore and net total income at ₹933 crore in Q3 FY25.

• Gross spread held steady at 1.9%-2.1%; NIM at 4% in Q3 FY25, slightly down from 4.1% year-over-year.

• Credit cost (net of overlay release) was 0.15%-0.20%, in line with the previous year.

• ROA stable at 2.4%; ROE at 11.5%, reflecting the full impact of the capital raise.

• Net worth as of 31 December 2024 stood at ₹19,336 crore.

Outlook and guidance

• Medium-term guidance: 24%-26% AUM growth, opex to net total income at 14%-15%, GNPA at 40-60 bps, credit cost at 20-25 bps, provisioning coverage at 40%-50%, ROA of 2%-2.2%, leverage at 7-8x, and ROE of 13%-15%.

• Guidance factors in expected repo rate cuts, competitive intensity, and anticipated NIM compression.