Asset Quality Improvement
Expected: CurrentHIGH confidence
What: NNPA: 11 bps
“Asset quality remained healthy during the quarter with GNPA at 27 bps, NNPA at 11 bps and annualized credit cost of 19 bps.”
Bajaj Housing Finance Ltd: Stock Analysis & Fundamentals
Data from 4w agoBajaj Housing Finance Ltd (Finance - Housing) — fundamental analysis, earnings data, and key metrics. PE: 30.7. ROE: 13.5%. This stock is not currently in the Nifty 500 momentum outperformers list.
Bajaj Housing Finance Ltd Key Facts
What's Happening
🌐FII stake decreased 0.8% this quarter
🏛️DII reducing — stake down 1.3%
Earnings Acceleration Triggers
1. Asset Quality Improvement
CurrentHIGH
2. Value Added Product Mix Shift
12-15 monthsMEDIUM
3. Operating Leverage Inflection
3-4 yearsMEDIUM
Key Risks
1. Tier-1 capital dropped by ~3% QOQ due to RBI consolidation of guidelines requiri
HIGH2. One-time impact of ₹13
LOWSector-Specific Signals
Total AUM₹1,33,000 Cr+23%
Net Interest Margin4.0%0 bps
Gross NPA Ratio0.27%0 bps
Net NPA Ratio0.11%null
Key Numbers
Current Price
₹92
Market Cap
76.5K Cr
Valuation
N/AWhy Are Bajaj Housing Finance Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Value Added Product Mix Shift
Expected: 12-15 monthsMEDIUM confidence
What: Sambhav SBU Yield: 9% to 13%
“Under near prime business we target average ticket size of 40 lakhs to 60 lakhs having yield in corridor of 9% to 11%... For affordable... 11% to 13%”
Operating Leverage Inflection
Expected: 3-4 yearsMEDIUM confidence
What: Opex to NTI: 19%
“The time frame we take a 3 to 4 year for 14% to 15%. Now, this OPEX growth can be a bit higher because as we will continue to invest”
NTI Compression of 8-10 bps vs 15-20 bps guided
HIGH confidence
What: NTI Compression of 8-10 bps vs 15-20 bps guided
“From here looking at full year, I believe 8-10 basis points of compression would still happen on the NTI level for the full year.”
NTI Compression guidance raised
HIGH confidence
What: 15-20 bps → 8-10 bps
“While we had guided for full year 15-20 basis points... I believe 8-10 basis points of compression would still happen on the NTI level”
What Are the Key Risks for Bajaj Housing Finance Ltd?
Earnings deceleration risks from management commentary
Tier-1 capital dropped by ~3% QOQ due to RBI consolidation of guidelines requiri
HIGHTrigger: Removal of an illustration in the consolidated circular led to a conservative interpretation requiring full capital for undisbursed portions.
Management view: The company has provided capital on a conservative basis and is seeking regulatory clarity.
Monitor: regulatory
One-time impact of ₹13
LOWTrigger: Implementation of new Labor Codes required a one-time catch-up provision.
Impact: PAT impact: ₹13.1 Cr
Management view: This is a one-time exceptional item already accounted for in Q3 results.
Monitor: labor
What Is Bajaj Housing Finance Ltd's Management Saying?
Key quotes from recent conference calls
“we have kind of delivered a flat-ish margin, so we are guiding for a 15-20 basis points kind of a decline for the full year perspective. [Previous Margin Compression guidance]”
“we are targeting Rs. 600 crore plus monthly disbursement run rate in next 12 to 15 months through strategic investments being made in this SBU. [Initiative: Sambhav SBU Expansion]”
“Now on a conservative basis then we have provided capital for the entire chunk of undisbursed loans in both home loans as well as the construction finance [Risk (regulatory): HIGH]”
“Exceptional item was of Rs. 13.1 crore due to one-time impact of gratuity provision pursuant to implementation of Labor Codes. [Risk (labor): LOW]”
What Did Bajaj Housing Finance Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹963 Cr
YoY +19%
Why: Growth was driven by higher assignment income and fees and commission income during the quarter.
Revenue growth was supported by a 24% increase in Net Total Income (NTI).
EBITDA
₹817 Cr
YoY +24%
Why: Pre-provision operating profit grew in line with net total income despite a 20% increase in operating expenses.
PPOP growth remained resilient at 24% YOY.
PAT
₹665 Cr
YoY +21%QoQ +3.4%
Why: Profitability was supported by AUM growth and improved operating efficiency, partially offset by higher attrition and a one-time gratuity provision.
PAT growth of 21% was achieved despite a ₹13.1 crore exceptional item for labor code implementation.
Other Highlights
• AUM reached ₹1.33 lakh crore, growing 23% YOY.
• Disbursements grew 32% YOY to ₹16,545 crore.
• Opex to NTI improved to 19% from 19.8% in the previous year.
What Sector Metrics Matter for Bajaj Housing Finance Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Total AUM
₹1,33,000 Cr
YoY +23%QoQ +5.3%
Why: Continued momentum in disbursements partially offset by higher attrition.
Net Interest Margin
4.0%
YoY 0 bpsQoQ 0 bps
Why: NIM held steady at 4% on both sequential and YOY basis.
Gross NPA Ratio
0.27%
YoY 0 bpsQoQ +1 bps
Why: Marginal increase from 26 bps in Q2 to 27 bps in Q3.
Net NPA Ratio
0.11%
YoY nullQoQ -1 bps
Why: Improvement from 12 bps in the previous quarter.
Cost of Funds
7.3%
YoY -60 bpsQoQ -5 bps
Why: Benefit from policy rate transmission on existing borrowings and lower rates on incremental borrowings.
Tier-1 Capital Ratio
20.15%
YoY nullQoQ -300 bps
Why: Regulatory change requiring capital for undisbursed loan tranches.
Capital Adequacy Ratio
23.15%
YoY nullQoQ null
Why: Maintained comfortable levels despite regulatory headwinds.
Annualized Attrition Rate
20%
YoY nullQoQ null
Why: Elevated due to rate cut pressure from public sector banks and aggressive balance transfers.
What Is Bajaj Housing Finance Ltd's Management Guidance?
Forward-looking targets from management for FY26
OPM Guidance
4%
Margin Outlook
REAFFIRMED
Volume
REAFFIRMED
Management Tone: BULLISH
Guidance Changes
RAISED
NTI Compression: 15-20 bps → 8-10 bps
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
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Frequently Asked Questions: Bajaj Housing Finance Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Bajaj Housing Finance Ltd's latest quarterly results?
Bajaj Housing Finance Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +21.4%
- Revenue Growth YoY: +17.8%
- Net Interest Margin: 31.00%
- Gross NPA: 0.27%
What is Bajaj Housing Finance Ltd's current PE ratio?
Bajaj Housing Finance Ltd's current PE ratio is 30.7x.
- Current PE: 30.7x
- Market Cap: 76.5K Cr
What is Bajaj Housing Finance Ltd's price-to-book ratio?
Bajaj Housing Finance Ltd's price-to-book ratio is 3.6x.
- Price-to-Book (P/B): 3.6x
- Book Value per Share: ₹25
- Current Price: ₹92
Is Bajaj Housing Finance Ltd a fundamentally strong company?
Bajaj Housing Finance Ltd's fundamental strength based on key financial ratios
- Return on Equity (ROE): 13.0%
Is Bajaj Housing Finance Ltd debt free?
Bajaj Housing Finance Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹94,000 Cr
What is Bajaj Housing Finance Ltd's return on equity (ROE) and ROCE?
Bajaj Housing Finance Ltd's return ratios over recent years
- FY2023: ROE 15.0%
- FY2024: ROE 15.0%
- FY2025: ROE 13.0%
Is Bajaj Housing Finance Ltd's cash flow positive?
Bajaj Housing Finance Ltd's operating cash flow is negative (FY2025).
- Cash from Operations (CFO): ₹-17,000 Cr
- Free Cash Flow (FCF): ₹-18,000 Cr
- CFO/PAT Ratio: -789% (weak cash conversion)
What is Bajaj Housing Finance Ltd's dividend yield?
Bajaj Housing Finance Ltd currently does not pay a significant dividend (yield 0.00%).
- Dividend Yield: 0.00%
- Current Price: ₹92
Who holds Bajaj Housing Finance Ltd shares — promoters, FII, DII?
Bajaj Housing Finance Ltd's shareholding pattern (Dec 2025)
- Promoters: 86.7%
- FII (Foreign): 0.9%
- DII (Domestic): 1.4%
- Public: 10.9%
Is promoter holding increasing or decreasing in Bajaj Housing Finance Ltd?
Bajaj Housing Finance Ltd's promoter holding has decreased recently.
- Current Promoter Holding: 86.7% (Dec 2025)
- Previous Quarter: 88.7% (Sep 2025)
- Change: -2.00% (decreasing — worth monitoring)
Is Bajaj Housing Finance Ltd a new momentum entry or an established outperformer?
Bajaj Housing Finance Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Bajaj Housing Finance Ltd?
Bajaj Housing Finance Ltd has 5 key growth catalysts identified from recent earnings analysis
- Asset Quality Improvement — Asset quality remains healthy with stable stage 2 assets and low net NPAs.
- Value Added Product Mix Shift — Expansion into near-prime and affordable segments provides higher yields compared to the prime home loan book.
- Operating Leverage Inflection — Management targets a long-term opex to NTI ratio of 14-15% as the business scales.
- NTI Compression of 8-10 bps vs 15-20 bps guided — Relatively higher assignment income in Q3 helped offset margin pressures.
What are the key risks in Bajaj Housing Finance Ltd?
Bajaj Housing Finance Ltd has 2 key risks worth monitoring
- [HIGH] Tier-1 capital dropped by ~3% QOQ due to RBI consolidation of guidelines requiri — Removal of an illustration in the consolidated circular led to a conservative interpretation requiring full capital for undisbursed portions.
- [LOW] One-time impact of ₹13 — Implementation of new Labor Codes required a one-time catch-up provision.
What did Bajaj Housing Finance Ltd's management say in the latest earnings call?
In Q3 FY26, Bajaj Housing Finance Ltd's management highlighted
- "we have kind of delivered a flat-ish margin, so we are guiding for a 15-20 basis points kind of a decline for the full year perspective. [Previous Ma..."
- "we are targeting Rs. 600 crore plus monthly disbursement run rate in next 12 to 15 months through strategic investments being made in this SBU. [Init..."
- "Now on a conservative basis then we have provided capital for the entire chunk of undisbursed loans in both home loans as well as the construction fin..."
What is Bajaj Housing Finance Ltd's management guidance for growth?
Bajaj Housing Finance Ltd's management has provided the following forward guidance for FY26
- Revenue outlook: Not Given
- OPM guidance: 4%
- Capex plan: Not Given for Not Given
- Management tone: bullish
- Milestone: [RAISED] NTI Compression: 15-20 bps → 8-10 bps
What sector-specific metrics matter most for Bajaj Housing Finance Ltd?
Bajaj Housing Finance Ltd's most important sub-sector-specific KPIs from the latest concall
- Total AUM: ₹1,33,000 Cr (YoY +23%) (QoQ +5.3%) — Continued momentum in disbursements partially offset by higher attrition.
- Net Interest Margin: 4.0% (YoY 0 bps) (QoQ 0 bps) — NIM held steady at 4% on both sequential and YOY basis.
- Gross NPA Ratio: 0.27% (YoY 0 bps) (QoQ +1 bps) — Marginal increase from 26 bps in Q2 to 27 bps in Q3.
- Net NPA Ratio: 0.11% (YoY null) (QoQ -1 bps) — Improvement from 12 bps in the previous quarter.
- Cost of Funds: 7.3% (YoY -60 bps) (QoQ -5 bps) — Benefit from policy rate transmission on existing borrowings and lower rates on incremental borrowings.
- Tier-1 Capital Ratio: 20.15% (YoY null) (QoQ -300 bps) — Regulatory change requiring capital for undisbursed loan tranches.
Is Bajaj Housing Finance Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Bajaj Housing Finance Ltd may be worth studying
- Currently showing mixed signals — monitor for clearer trend confirmation
What is the investment thesis for Bajaj Housing Finance Ltd?
Bajaj Housing Finance Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Asset Quality Improvement
Risk Factors (Bear Case)
- Key risk: Tier-1 capital dropped by ~3% QOQ due to RBI consolidation of guidelines requiri
What is the future outlook for Bajaj Housing Finance Ltd?
Bajaj Housing Finance Ltd's forward outlook based on current data signals
- Key Catalyst: Asset Quality Improvement
- Key Risk: Tier-1 capital dropped by ~3% QOQ due to RBI consolidation of guidelines requiri
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.