India’s largest non-bank home loan financier by market value released its Q4 results in the post-market hours of Monday. Revenue from operations meanwhile grew nearly 16% to Rs 2,903 crore in Q4 FY26 from Rs 2,504 crore in Q4 FY25. Net total income increased 20% to Rs 1,141 crore, supported by strong loan growth and stable asset quality.
Net interest income for Q4 FY26 increased 15% to Rs 945 crore from Rs 823 crore a year ago, reflecting continued expansion in the loan book. Profit before tax rose 20% to Rs 866 crore, indicating improving operating leverage despite a rise in provisions.
Bajaj Housing Finance’s assets under management (AUM) grew 23% YoY to Rs 1,40,706 crore as of March 31, 2026, driven by healthy disbursements and demand across housing finance segments. Loan assets also rose 24% YoY to Rs 1,23,745 crore, while quarterly disbursements increased 23% YoY to Rs 17,506 crore.
Bajaj Housing Finance’s strong asset quality
The Bajaj Group company’s asset quality remained strong, with gross non-performing assets (GNPA) at 0.27% and net NPA at 0.11%, broadly stable compared to last year. The provision coverage ratio on stage 3 assets stood at 60%, indicating adequate buffers.
Operational efficiency improved during the quarter, with operating expenses as a percentage of net total income declining to 19.2% from 21.8% in the year-ago period. However, loan losses and provisions more than doubled to Rs 55 crore from Rs 26 crore, reflecting a cautious stance amid a growing loan book.
For the full year FY26, the lender reported profit after tax of Rs 2,560 crore, up 18% from Rs 2,163 crore in FY25. Net interest income rose 25% to Rs 3,752 crore, while net total income increased 23% to Rs 4,391 crore.
Morgan Stanley on Bajaj Housing Finance
Morgan Stanley said Bajaj Housing Finance’s management commentary was positive with a strong growth outlook, aiming to grow at 2x industry speed, ET Now reported. It expects net interest margin (NIM) to be stable in the ongoing Q1 FY27, with an overall mild compression in FY27.
RBI’s repo rate hike could support margins via floating rate book, and no stress is seen across portfolios with improving delinquencies, the international brokerage said, adding that stage 2 provisioning increase was driven by macro prudence.
Morgan Stanley noted that bank-led competition remains elevated in home loans, although asset quality for Bajaj Housing Finance remained stable and credit cost is expected to normalise further.
Motilal Oswal on Bajaj Housing Finance
Motilal Oswal Financial Services held a ‘Neutral’ call for the shares of Bajaj Housing Finance, but raised its target price to Rs 100 apiece. The latest target price implies an upside potential of nearly 10% from the stock’s previous closing price.
The domestic brokerage said that the company’s earnings were more or less in line with estimates, along with robust asset quality. It noted that the firm’s NII missed estimates by 15%, while other income beat expectations by 34%. “Bajaj Housing Finance continues to pursue an aggressive but calibrated growth strategy, with a clear intent to sustain expansion at roughly twice the industry pace. The growth momentum is expected to be increasingly led by non-HL segments, which are scaling faster than traditional home loans due to their higher return profile and greater portfolio flexibility via sell-down opportunities,” it said.
“We continue to believe in management’s ability to drive profitability improvement, supported by a healthy AUM CAGR of 22% over FY26-28E, broadly steady NIMs, and benign credit costs. We expect Bajaj Housing Finance to deliver strong AUM growth, but rising competition from PSU banks and higher BTOUTs may push BHFL to cut its lending rates, which could exert pressure on NTI,” it added.
Bajaj Housing Finance share price
Bajaj Housing Finance shares have gained more than 20% in the past one month, but are down more than 5% in 2026 so far and 27% in one year. The stock had made a bumper market debut in September 2024, listing at a premium of 114% over its IPO price at Rs 150 apiece. The stock has now fallen more than 39% from its listing price to close at Rs 91.07 apiece on NSE on Monday.
However, the stock has recovered over 25% after falling to a fresh 52-week low of Rs 72.65 apiece at the end of March this year, nearing its IPO price. The company currently has a market capitalisation of around Rs 76,000 crore.
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