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View Promises →Bajaj Housing Finance Limited — Q4 FY26
Bajaj Housing Finance reported a steady Q4 FY26 with AUM crossing INR 1.4 lakh crore, growing 23% YoY.
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Bajaj Housing Finance reported a steady Q4 FY26 with AUM crossing INR 1.4 lakh crore, growing 23% YoY. PAT grew 14% to INR 669 crore (20% normalized), impacted by a one-time tax benefit in the base. Asset quality remained healthy with GNPA stable at 27 bps and net NPA at 11 bps. Net interest margin compressed 12 bps sequentially to 3.8% due to lower acquisition pricing and portfolio mix shift. Management guided for FY27 ROA towards the upper end of the 2%-2.2% medium-term range, assuming no policy rate change. Key risks include elevated money market rates compressing spreads further and competitive intensity from banks driving higher BT-out rates. The company expects OpEx efficiency and lower credit costs to partially offset margin compression.
बजाज हाउसिंग फाइनेंस ने चौथी तिमाही में अच्छा प्रदर्शन किया। उनके कुल कर्ज (AUM) 1.4 लाख करोड़ रुपये से ज्यादा हो गए, जो पिछले साल से 23% ज्यादा है। मुनाफा (PAT) 14% बढ़कर 669 करोड़ रुपये हुआ, लेकिन पिछले साल एक बार का टैक्स फायदा था, इसलिए असली बढ़त 20% है। कर्ज की गुणवत्ता अच्छी है - फंसे कर्ज (GNPA) 0.27% और शुद्ध फंसे कर्ज 0.11% पर स्थिर है। ब्याज कमाई का अंतर (NIM) थोड़ा घटकर 3.8% हुआ क्योंकि नए कर्ज पर ब्याज दर कम है। कंपनी को उम्मीद है कि अगले साल निवेश पर रिटर्न (ROA) 2% से 2.2% के बीच रहेगा। मुख्य जोखिम हैं - बाजार में ब्याज दरें बढ़ने से मुनाफा कम होना और बैंकों से कड़ी प्रतिस्पर्धा। कंपनी खर्च कम करके और कर्ज वसूली बेहतर करके इसकी भरपाई करेगी।
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Spread compression from elevated money market rates
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AUM
INR 1.4 lakh crore
+23% YoY
AUM crossed INR 1.4 lakh crore, growing 23% year-on-year.
GNPA
27 bps
-2 bps YoY
Gross NPA stable sequentially at 27 bps, improving from 29 bps YoY.
OpEx to NTI
19.2%
-260 bps YoY
Operating expense to net total income improved to 19.2% from 21.8% YoY.
Sambhav monthly disbursement run-rate
INR 400-425 crore
N/A
Sambhav loans achieved average monthly disbursements of INR 400-425 crore in Q4.
What Changed vs Last Quarter
NEW
FY27 ROA towards upper end of 2%-2.2% medium-term range
Management expects ROA to be at the upper end of the medium-term guidance range, assuming no policy rate change, with margin compression offset by OpEx efficiency and lower credit costs.
NEW
Q1 FY27 NIM likely sideways with slight compression
Net interest margin in Q1 FY27 is expected to be broadly stable versus Q4 FY26, with a slight compression possible due to yield pressure.
NEW
Full-year FY27 guidance to be provided with Q1 results
Management will provide a detailed assessment for FY27 along with Q1 FY27 results, given macro uncertainty.
UPDATED
Sambhav monthly disbursements to exceed INR 600 crore in 12 months
The Sambhav business is on track to achieve monthly disbursements of over INR 600 crore within the next 12 months.
DROPPED
NTI compression of 8-10 bps for FY26 vs FY25
Net total income margin expected to compress 8-10 basis points for the full year, revised from earlier 15-20 bps guidance due to higher assignment income in Q3.
DROPPED
Medium-term AUM growth guidance of 24-26% over 3-4 years
Management reiterated medium-term AUM growth of 24-26% over 3-4 years, contingent on industry growth of 12-14% and stabilization of attrition.
DROPPED
Cost of funds expected to decline 20-25 bps in FY27
Management expects cost of funds to reduce by 20-25 bps in FY27 due to repricing of existing borrowings and lower incremental borrowing costs.
NEW RISK
Spread compression from elevated money market rates
If money market rates remain elevated without a policy rate hike, the company's ability to pass on costs is limited, leading to further spread compression.
NEW RISK
Sustained high BT-out rates from competitive bank pricing
BT-out rates remained elevated in Q4 despite expectations of stabilization, driven by aggressive pricing from public and private sector banks.
NEW RISK
Regulatory risk from declining home loan share
The home loan share of total assets has been contracting, though still above the regulatory minimum of 50%. Further decline could attract regulatory scrutiny.
NEW RISK
Macro uncertainty impacting growth and asset quality
Global geopolitical and macro factors could affect policy rates and economic growth, potentially impacting loan growth and credit costs.
RISK GONE
Elevated balance transfer attrition
BT out reached ~20% of portfolio, driven by aggressive rate cuts by PSU banks. Management expects normalization as rate cycle stabilizes, but near-term pressure persists.
RISK GONE
Tier 1 capital decline due to regulatory change
Tier 1 capital dropped sharply due to conservative provisioning for undisbursed tranches of under-construction loans after RBI consolidated guidelines. Clarity awaited.
RISK GONE
Competitive intensity in prime and super-prime segments
Pricing competition from banks remains intense, especially in prime/super-prime, pressuring spreads. Management views this as a permanent feature, not transient.
RISK GONE
Sambhav loan credit risk as portfolio seasons
The affordable/near-prime book is still young (18 months); early indicators are positive, but delinquencies may emerge as the portfolio matures beyond 24 months.
🤫 Topics management stopped discussing
Mentioned in Q2 FY25, Q3 FY25, Q4 FY25
On a steady-state basis (excluding assignment effects), credit cost is expected to be 20-25 bps on assets under management.
Mentioned in Q2 FY26, Q3 FY25, Q3 FY26
Management reiterated medium-term AUM growth of 24-26% over 3-4 years, contingent on industry growth of 12-14% and stabilization of attrition.
Mentioned in Q3 FY26, Q4 FY25
Management expects cost of funds to reduce by 20-25 bps in FY27 due to repricing of existing borrowings and lower incremental borrowing costs.
Mentioned in Q2 FY25, Q2 FY26
PSU banks are aggressively pricing home loans, leading to elevated attrition (21-22%) and yield compression. Management acknowledged this as a cyclical feature but expects it to persist.
Mentioned in Q2 FY25, Q2 FY26
Management expects to reach a gearing ratio of approximately 7.5x within two to two and a half years, driven by growth and capital management.
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Guidance and risk preview
Management expects ROA to be at the upper end of the medium-term guidance range, assuming no policy rate change, with margin compression offset by...
If money market rates remain elevated without a policy rate hike, the company's ability to pass on costs is limited, leading to further spread comp...
View Risks →