Bajaj Housing Finance reported a 14% year-on-year increase in net profit, reaching Rs 669 crore for the March quarter. The company’s operating profit also rose by 20%, to Rs 866 crore. BHFL indicated that it had a strong quarter, with growth across Assets Under Management (AUM), asset quality, and operational efficiency.
AUM grew by 23% to Rs 1,40,706 crore. Net interest income (NII) increased by 15%, rising to Rs 945 crore from Rs 823 crore in the previous fiscal year. However, the net interest margin decreased by 12 basis points sequentially due to a moderation in NII, falling to 3.8%. This decline was attributed to a 15-bps pass-through in December 2025 and a 25-bps increase in repo rates.
The company experienced AUM growth across key products: home loan AUM increased by 18%, lease rental discounting rose by 44%, loan against property grew by 24%, and developer finance was up by 13% year-on-year. AUM growth for the quarter was Rs 7,294 crore, compared to Rs 6,370 crore in Q4 FY25 and Rs 6,664 crore in Q3 FY26.
Contribution of home loans
Home loans constituted 54.1% of the portfolio, amounting to Rs 76,055 crore. Lease rental discounting share was 22.4% (Rs 31,531 crore), developer finance accounted for 11.5% (Rs 16,626 crore), and loans against property made up 10.8% (Rs 15,191 crore). Disbursements grew by 23% year-on-year, to Rs 17,506 crore in Q4 FY26. On a sequential basis, disbursements increased by 6%.
BHFL’s Sambhav Housing loan, targeted at near-prime and affordable segments, is expanding and is on track to reach a monthly disbursement run rate of Rs 600 crore within the next 12 months. Currently, the monthly disbursement run rate is between Rs 410 and Rs 425 crore. The Sambhav portfolio has grown to Rs 9,000 crore, up from Rs 5,000 crore last year, with an average ticket size ranging from Rs 40-60 lakh in the near-prime segment and Rs 15-35 lakh in the affordable segment. The coverage of these loans extends across 73 urban locations and 72 tier-4 and rural areas.
Net total income (NTI) rose by 20% to Rs 1,141 crore. The ratio of operating expenses to net total income for the quarter was 19.2%, down from 21.8% in Q4 FY25. Operating expenses as a percentage of NTI improved by 120 basis points over the year, from 20.9% in FY25 to 19.7% in FY26.
During this quarter, the gross spread reduced by 10 basis points. It was driven by a 14-basis-point decrease in portfolio yield caused by lower acquisition pricing and the attrition of a higher rate book. It was partially offset by a 4-basis-point reduction in the cost of funds.
The 4% drop in the cost of funds was attributed to rate transmission on existing borrowings, although this was somewhat counterbalanced by the effects of incremental money market borrowings at a higher rate, the company said. The liquidity buffer stood at Rs 2,662 crore as of 31 March 2026, with a liquidity coverage ratio (LCR) of 146% for the quarter.
Loan losses and provisions for FY26 were Rs 55 crore, up from Rs 26 crore in Q4 FY25. BHFL maintained stable asset quality during the quarter, with gross non-performing assets (GNPA) at 27 basis points and net non-performing assets (NNPA) at 11 basis points. As of 31 March 2026, gross NPA and net NPA stood at 0.27% and 0.11%, respectively, compared to 0.29% and 0.11% as of 31 March 2025.
The annualised credit cost was 19 basis points. The annualised return on assets (ROA) was 2.3%, and the return on equity (ROE) was 12.1% in FY26.