Bajaj Housing Finance (BAJAJHFL) Investor presentation summary

Industry landscape

• Home loans industry grew at 12.9% CAGR from FY20 to FY26 and is projected to grow at 14-16% CAGR till FY28, reaching a portfolio size of ₹60-63 lakh crore.

• Market share remains dominated by banks (~78%), with HFCs' share moderating from 21.3% in FY20 to 18.3% in FY25.

• BHFL expanded its market share from 1.0% in FY20 to 1.6% in FY25, with a 22.8% CAGR during FY23-25, outpacing peers.

Company overview and business model

• Achieved consistent AUM growth, reaching ₹1,40,706 crore in FY26, with a 29% CAGR over the last five years.

• Operates a scalable, low-risk business model with a full suite of mortgage products, including home loans, LAP, LRD, and developer financing.

• Maintains a diversified borrowing mix and focuses on long-term liabilities to match asset tenors.

• Organization structured into three business verticals: Retail (Prime), Retail (Near Prime & Affordable), and Commercial.

Strategic priorities and growth drivers

• Aims to increase market share in incremental home loan originations to 5% from ~2.5-2.7%, leveraging Sambhav home loans for broader customer segmentation.

• Focuses on balanced product mix, optimizing treasury, and digitalization for process efficiency.

• Growth strategy includes expanding all product lines, deepening distribution, and enhancing digital capabilities.