Bajaj Housing Finance on Wednesday, July 23, reported that its profit after tax (PAT) grew 21% y-o-y to ₹583.3 crore in Q1 FY26. Its profit stood at ₹482.61 crore in the same period last year.
The NBFC’s net interest income (NII) stood at ₹887 crore during the quarter under review, up 33% to 4% from ₹665 crore in the June quarter of FY25. Its net interest margin (NIM) expanded to 4% from 3.9% earlier.
However, its asset quality deteriorated as its gross non-performing assets (GNPA) rose to 0.30% in Q1 FY26 from 0.28% in the same period a year ago. Its net NPA also rose marginally to 0.13% from 0.11% in Q1 FY25.
The company’s assets under management (AUM) grew 24% year-on-year to ₹1.2 lakh crore in the June quarter of FY26 from ₹97,071 crore in the same period last year. This growth was driven by increased attrition due to softness in the real estate market and intense competitive pricing, Bajaj Housing Finance said in a regulatory filing.
Its return on assets (ROA) remained stable at 2.3% year-on-year during the quarter.
Bajaj Housing Finance said, “The company’s digital initiatives will continue to provide a seamless and consistent experience, with e-agreement penetration increasing to 93% and online customer onboarding penetration increasing to 88% by June 2025.”
Bajaj Housing Finance sets medium-term guidance
The NBFC forecasts AUM growth to be between 24% to 26% over the medium term and 21% to 23% in FY26. Its forecast for FY26 is moderate due to increasingly competitive pricing on acquisition of new loans, increasing portfolio deterioration and low real estate demand.
The company expects its GNPA to remain in the range of 40-60 basis points over the medium term and 35 to 40 basis points for FY26.
Bajaj Housing expects its RoA to remain in a narrow range, in line with the last two quarters, and forecasts it to remain in the range of 2% to 2.2% for the medium term and fiscal year.
Shares of the NBFC closed 0.79% higher at ₹122.42 per share on the National Stock Exchange (NSE) on Wednesday. However, the results were announced after market close.