Bajaj Housing Finance shares underperform Sensex YTD, down 40% from all-time high

At 11:14 AM, shares of Bajaj Housing Finance limited were trading 3.07% higher at ₹116.18 apiece on the National Stock Exchange (NSE).

The company had entered the capital market in September 2024 with its initial public offering (IPO), pricing shares at ₹70. On debut, Bajaj Housing Finance delivered a strong listing on Dalal Street at ₹150, offering investors gains of more than 100%.

The initial public offering (IPO) of Bajaj Housing Finance, which was launched in September, was a blockbuster hit as the issue received a bumper demand from investors.

The ₹6,560 crore initial public offer received 63.60 times subscription, thanks to overwhelming participation from institutional buyers.

The initial share sale got bids for 46,27,48,43,832 shares against 72,75,75,756 shares on offer, according to NSE data.

The qualified institutional buyers (QIBs) part subscribed a staggering 209.36 times, while the non-institutional investors quota received 41.50 times subscription. The category for Retail Individual Investors (RIIs) obtained a 7.02 times subscription.

The price band for the offer was ₹66-₹70 per share.

It must be noted that the public issue of Bajaj Housing Finance was fully subscribed within hours of opening for bidding.

Bajaj Housing Finance had collected ₹1,758 crore from anchor investors.

The IPO had a fresh issue of equity shares of up to ₹3,560 crore and an offer-for-sale (OFS) of equity shares to the tune of ₹3,000 crore by parent Bajaj Finance.

The share sale was conducted to comply with the Reserve Bank of India's (RBI) regulations, which require upper-layer non-banking finance companies to be listed on stock exchanges by September 2025.

Bajaj Housing Finance 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.