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.
neutral
medium
Financial stats pending filing verification
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
88%Questions answered0Evaded / deflected12Questions audited
Answered
High priority
Home loan percentage and prepayment levels, BT-out details.
Asked by Shubhranshu Mishra, Philip Capital
Management provided specific numbers and explained the regulatory definition.
Read the exchange
Question
So quickly, what is the home loans are the percentage of Indian only 54% . That's because I think last quarter we were at around 50.7%. The second is, we've been growing the non-home loan part a little faster. My sense is that we still have a BT-out pressure on our book. So how do we look at the prepayments? What are the levels of prepayments? And how, of that prepayments, what would be part payments, foreclosures, and what is the actual BT out from the customers?
Atul Jain, Managing Director
So the question, first question is on the HL. I think HL we engineered, 50.45%. 50.45% because, that's not home loan. There is a HL definition, which is a regulatory definition, where we are required to be 50% of the total assets, which includes the investments and the cash buffer what we hold. So that number is 50.45% , which is a regulatory number, which is different from the home loan composition of the balance sheet.
Answered
Medium priority
Who are the competitors getting BT-out?
Asked by Shubhranshu Mishra, Philip Capital
Management named the competitors clearly.
Read the exchange
Question
Who are these competitors who are getting BT out?
Atul Jain, Managing Director
This is largely the banks. Public sector banks are the largest company, followed by HDFC or ICICI. Largest is public sector.
Answered
High priority
Regulatory observation on HL contraction and portfolio buyouts.
Asked by Shubhranshu Mishra, Philip Capital
Management confirmed compliance and addressed portfolio buyouts.
Read the exchange
Question
It has been contracting despite doing the assignment on the non-HL. One, are we likely to get some kind of a regulatory observation because it's been contracting? That's just a speculatory question I'm asking. Second is that, are we, can we also do portfolio buyouts of individual home loans which props up this number as a percentage of our year?
Atul Jain, Managing Director
The question is, Shubhranshu, because see, regulation says 50 and 60. As long as you are above 50 and 60, there is no ticker from a regulator which can be there on the number what should be there. Because that's a regulation. We remain. There has not been any single month because this regulatory report has to be submitted every month, not at a quarter or a year. We have been submitting this report every month end. There is no single month till now in our history where we have not maintained the regulatory requirement.
Partial answer
High priority
Reason for margin decline and lowest sourcing rate in home loans.
Asked by Gaurav Khandelwal, JPMorgan
Management explained margin decline but did not give the lowest sourcing rate.
lowest sourcing rate not provided
Read the exchange
Question
First, on the margin decline by 12 basis points, a lot of this came from asset yield decline. Can we know which product segment drove this? Was it largely home loan, or are we also seeing some sort of decline in the corporate on the non-home corporate side? What was the lowest sourcing rate and home loans in the quarter?
Atul Jain, Managing Director
Margin decline of 12 bps is largely led by lower acquisition price and also 15 bps of a pass-through what we have done in our PLR in December. The full impact of that 15 bps of a pass-through what happened on in terms of in December came in the current.
Answered
High priority
Will yields remain stable in Q1?
Asked by Gaurav Khandelwal, JPMorgan
Management gave a clear directional answer with specific basis points.
Read the exchange
Question
Given what we know right now, Gaurav, is it fair to assume that at least for first quarter the yields should broadly remain stable, if not fall down?
Atul Jain, Managing Director
So yields in quarter one. There would be slight compression we'll see there also, while cost of fund side also we'll see some marginal benefit of 3 to 5 basis points. On the yield side, we may see a slightly higher impact.
Answered
High priority
Will FY27 ROA be above medium-term guidance?
Asked by Gaurav Khandelwal, JPMorgan
Management gave a clear answer on ROA trajectory.
Read the exchange
Question
In that case, FY 2027 could be another year when you are above the medium-term ROA guidance. Is that a fair conclusion?
Atul Jain, Managing Director
We should be towards the upper end of the medium-term guidance, may not beat that. Leverage doesn't have an impact on the ROA. In fact, it compresses ROA.
Answered
High priority
Segment-wise on-book yields for FY26.
Asked by Raghav Garg, Ambit Capital
Management provided specific yield ranges for each segment.
Read the exchange
Question
Can you give me the segment-wise, on-book yields for the full year FY 2026? If you can divide this, you know, between home loans, LAP, developer finance and LRD, that will be very helpful.
Atul Jain, Managing Director
Broadly at a portfolio level, Raghav, home loans will around 8.50%-8.60% corridor. LAP would be around 150 basis points above that. LRD around 7.98% corridor. Developer finance would be 11.5%-11.75% corridor.
Answered
High priority
Incremental yield on home loan book.
Asked by Raghav Garg, Ambit Capital
Management gave specific incremental yield numbers.
Read the exchange
Question
Just last question, the incremental yield on the home loan book is how much for you right now? On book I think is 8.5%, 8.6%. Incrementally how much?
Atul Jain, Managing Director
Incremental average would be +8%. 8.10%, 8.15%. Because we are seeing average, because this is inclusive of near-prime, affordable prime, everything put together. Incremental will be 8.05%, 8.10%.
Answered
Medium priority
Need for further PLR reduction and share of floating rate borrowings.
Asked by Viral Shah, IIFL Capital Services
Management clearly stated no further PLR cut is expected.
Read the exchange
Question
One is, first of all, if we assume, let's say there is no repo rate hike, do you first of all see any need and requirement for, say, reducing the PLR rates further given what is currently there in the market competition, diluted G-Sec yields, et cetera?
Atul Jain, Managing Director
Viral, if there is no repo rate hike, I don't think the, I think the scenario of a cut off prio- rate is over. Because if we are looking at to cost of funds to marginally inch up, the marginal cost of fund is already up in quarter four, and it is given the after loss, it's looking up.
Answered
High priority
Reason for stage two PCR increase and early delinquency trends.
Asked by Viral Shah, IIFL Capital Services
Management explained it was a prudential measure, not due to stress.
Read the exchange
Question
Was that purely just a strengthening measure, or are you seeing any trends in terms of, say, early delinquencies, et cetera? Because the some bureau data analysis was showing early bounce rates.
Atul Jain, Managing Director
No. So, Viral, in our portfolio in all the metrics, whether it's a first bounce or first 12-month bounce, early bounce, whether it is prime, non-prime, affordable, LRD, in any case we don't have lab. All the bounce metrics also are showing a downward trend.
Partial answer
High priority
Why ROA decline of 10 bps despite offsetting factors?
Asked by Abhijit Tibrewal, Motilal Oswal Financial Services
Management explained competitive dynamics but did not reconcile the 10 bps decline.
did not directly explain the 10 bps decline
Read the exchange
Question
What I'm trying to understand is why you mentioned that you guided for a 10 basis points decline in ROA, where the margin or margin decline could be offset by OpEx efficiencies credit costs.
Atul Jain, Managing Director
Abhijit, we in the prime market, the market which we operate, it is the banks which set the rate. It is SBI and HDFC who are the rate setters. We are not the rate setters.
Partial answer
Medium priority
Trends in fee and assignment income relative to loan growth.
Asked by Nischint Chawathe, Kotak Securities
Management discussed loan growth but did not explain fee income acceleration.
did not directly address fee income growth vs loan growth
Read the exchange
Question
Just looking at the trends in fee and assignment income, I mean, both the line items. For last two years, we have been sort of consistently ahead of the overall loan growth. How should one think about it?
Atul Jain, Managing Director
Loan growth, Nischint, we would want to be significantly ahead, the way we always want to grow 2x of industry. That is what we always stated, and we want to grow, and we want to continue. There is no change in the growth chance of the company.