Bajaj Housing Finance (BAJAJHFL) Q2 25/26 earnings summary

Executive summary

• Assets under management (AUM) grew 24% year-over-year to ₹1,26,749 crore as of September 30, 2025, with profit after tax up 18% to ₹643 crore and annualized ROA at 2.3%.

• Disbursements increased 32% year-over-year to ₹15,914 crore, with home loans comprising 55% of the portfolio and strong growth in LAP, LRD, and developer finance segments.

• Asset quality improved, with GNPA at 0.26%, NNPA at 0.12%, and annualized credit cost at 0.18%.

• Operating efficiency improved, with OPEX to NTI ratio at 19.6% (down from 20.5% YoY).

• Unaudited financial results for the quarter and half year ended 30 September 2025 were approved, with a limited review report issued with an unmodified opinion by joint statutory auditors.

Financial highlights

• Net interest income for Q2 FY26 rose 34% year-over-year to ₹956 crore; net total income increased 22% to ₹1,097 crore.

• Profit before tax for Q2 FY26 was ₹833 crore, up 18% year-over-year; PAT up 18% to ₹643 crore.

• Operating expenses to net total income ratio improved to 19.6% from 20.5% YoY.

• Loan losses and provisions for Q2 FY26 were ₹50 crore, up from ₹5 crore in Q2 FY25.

• Net worth at ₹21,170 crore; capital adequacy ratio at 26.12% (regulatory minimum 15%).

Outlook and guidance

• Margin guidance remains unchanged, with expectations of 15–20 basis points compression for the full year due to attrition and anticipated rate cuts.

• FY26 AUM growth expected at 21–23%, moderated due to competitive pricing and real estate demand moderation.

• OPEX to NTI is targeted to reach 14–16% over the next three to four years.

• ROA expected to remain rangebound at 2.0–2.2%; ROE to moderate to 11–12% due to recent capital raises.

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