Bajaj Housing Finance Ltd (BSE: 544252; BAJAJHFL) reported a 21% rise in third-quarter profit on Monday, driven by double-digit growth in its assets under management and strong disbursement momentum despite a competitive lending environment.
The company, a subsidiary of Bajaj Finance, posted a net profit of INR665 crore ($80.2 million) for the quarter ended Dec. 31, 2025, up from INR548 crore a year earlier. Assets under management (AUM) grew 23% to INR1,33,412 crore, supported by a diversified portfolio where home loans account for 54.5% of total assets.
Key Context
Indian mortgage lenders have benefited from sustained demand in the premium and mid-segment housing markets, even as higher borrowing costs prompted some moderation in the broader real estate sector. Bajaj Housing Finance noted that while real estate demand has shown some signs of cooling, its focus on salaried prime customers and commercial lease rental discounting has helped maintain scale.
Financial Highlights
• Net Interest Income (NII) rose 19% to INR963 crore.
• Net Total Income (NTI) increased 24% to INR1,153 crore.
• Disbursements surged 32% year-on-year to 16,545 crore rupees, reflecting continued momentum in loan originations.
• The company’s Net Interest Margin (NIM) remained stable at 4.0%.
• Operating efficiency improved, with the Opex-to-Net Total Income ratio dropping to 19.0% from 19.8% in the same period last year.
Asset Quality and Capital
The lender maintained healthy asset quality, reporting a Gross Non-Performing Assets (GNPA) ratio of 0.27%, down from 0.29% a year ago. The Net NPA ratio stood at 0.11%.
Capital adequacy remained strong at 23.15%, well above the regulatory requirement of 15%. The company’s liquidity buffer was reported at 2,730 crore rupees as of Dec. 31.
Exceptional Item and Board Changes
The quarterly results included a one-time exceptional charge of INR13.14 crore related to an increase in gratuity liability following changes to India’s New Labour Codes.
Separately, the company announced the appointment of Shri Ajay Kumar Choudhary, a former Executive Director of the Reserve Bank of India, as an Independent Director for a five-year term starting March 1, 2026.
Management Outlook
For the full fiscal year 2026, management expects AUM growth to remain in the 21–23% range. While competitive pricing and portfolio attrition are expected to impact margins slightly, the company intends to continue its geographical expansion into deeper markets and tier-4 locations.