Bajaj Housing Finance Q1 profit rises 23% to ₹715 crore on healthy loan growth
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Bajaj Housing Finance reported a 22.6% year-on-year increase in its net profit for the first quarter of FY27, driven by steady loan growth and healthy asset quality, even as net interest income (NII) growth remained in single digits.
The housing finance company posted a net profit of ₹715.3 crore for the quarter ended June 30, compared with ₹583.3 crore in the corresponding period last year. Revenue from operations rose 17.2% to ₹3,063 crore, while NII increased 9.1% to ₹968 crore. Profit before tax climbed 22.7% to ₹928.7 crore from ₹756.9 crore a year ago.
Loan book expands 24%
Assets under management (AUM) grew 24% year-on-year to ₹1.50 lakh crore as of June 30, 2026, while loan assets increased 24% to ₹1.31 lakh crore. During the quarter, the company disbursed loans worth ₹19,509 crore, up 33% from the year-ago period.
Among key business segments, lease rental discounting recorded the fastest growth, with AUM rising 41% year-on-year to ₹34,604 crore. Home loans, the company's largest portfolio, grew 20% to ₹80,865 crore, while loan against property and developer finance portfolios expanded 22% and 19%, respectively.
Asset quality remains robust
Bajaj Housing Finance continued to maintain healthy asset quality during the quarter. Gross non-performing assets (GNPA) improved to 0.29% from 0.30% a year ago, while net NPA stood at 0.12%, compared with 0.13% in the corresponding quarter last year.
Loan losses and provisions declined sharply to ₹16 crore from ₹38 crore a year earlier, while the provision coverage ratio on stage 3 assets stood at nearly 59%. The company's capital adequacy ratio remained strong at 21.59%, comfortably above the regulatory requirement.
"The company delivered healthy growth in the first quarter with assets under management increasing 24% year-on-year to ₹1,49,624 crore. Profit after tax rose 23% to ₹715 crore, supported by strong business momentum and continued asset quality," the company said in its earnings release.
Shares of Bajaj Housing Finance ended 2.60% higher at ₹87.89 apiece on the NSE on Wednesday. The stock has declined more than 24% over the past year, underperforming the Nifty 500 index, which has gained nearly 1.5% during the same period.