Bajaj Housing Finance Q1 result: PAT rises 21% YoY to ₹583 crore; asset quality deteriorates

Bajaj Housing Finance on Wednesday, July 23, reported a 21% year-on-year (YoY) surge in its profit after tax (PAT) to ₹583.3 crore in the first quarter of FY26. In the corresponding period last year, its profit was at ₹482.61 crore.

The NBFC’s net interest income (NII) stood at ₹887 crore during the quarter under review, jumping 33% YoY from ₹665 crore in the June quarter of FY25. Its net interest margin (NIM) increased to 4% from 3.9% previously.

However, its asset quality declined as its gross non-performing assets (GNPA) increased to 0.30% in Q1FY26, compared to 0.28% in the year-ago period. Its net NPA also expanded marginally to 0.13% from 0.11% in the Q1FY25.

The firm’s assets under management (AUM) surged 24% YoY to ₹1.2 lakh crore in the June quarter of FY26, as against ₹97,071 crore in the same period last year. This growth was driven by moderation in the real estate market, coupled with intense competitive pricing resulting in higher attrition, Bajaj Housing Finance said in a regulatory filing.

Its return on assets (ROA) remained stable YoY at 2.3% during the quarter.

“The company’s digital initiatives continue to deliver a seamless and consistent experience, where e-agreement penetration stood at 93% and online customer onboarding penetration improved to 88% in June 2025,” Bajaj Housing Finance stated.

Bajaj Housing Finance sets medium-term guidance

The NBFC set its expectation for AUM growth between 24% and 26% in the medium term and 21% to 23% in FY26. Its assessment for the fiscal year is moderate due to heightened competitive pricing on the acquisition of new loans, increased portfolio attrition, along with moderation in real estate demand.

The firm expects its GNPA to remain within the 40-60 basis points range in the medium term and 35 to 40 bps for FY26.

Bajaj Housing expects its ROA to remain rangebound in line with the previous two quarters, projecting it to remain between 2% and 2.2% in the medium term and for the financial year.

Shares of the NBFC closed 0.79% higher at ₹122.42 apiece on the National Stock Exchange (NSE) on Wednesday. However, the results were announced after the market closed.