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View Claim Ledger →Bajaj Housing Finance Ltd — Q4 FY26
Bajaj Housing Finance reported a steady Q4 FY26 with AUM crossing ₹1,40,000 crore (up 23% YoY) and PAT of ₹669 crore (+14% YoY; +20% excluding one-time tax benefit).
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Bajaj Housing Finance reported a steady Q4 FY26 with AUM crossing ₹1,40,000 crore (up 23% YoY) and PAT of ₹669 crore (+14% YoY; +20% excluding one-time tax benefit). Asset quality remained healthy with GNPA at 27 bps (stable sequentially) and NNPA at 11 bps. Net interest margin compressed 12 bps sequentially to 3.88% due to lower acquisition pricing and portfolio mix shift, partially offset by a 4 bps decline in cost of funds. Opex-to-NTI improved to 19.2% from 21.8% a year ago. Management guided for FY27 ROA towards the upper end of the 2.0-2.2% medium-term range, expecting further margin compression of ~10 bps offset by opex efficiencies and lower credit costs. Key risk: elevated money market rates and competitive intensity could pressure spreads more than anticipated if policy rates remain unchanged.
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Elevated money market rates without policy rate hike
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AUM
₹1,40,000+ crore
+23% YoY
AUM crossed ₹1.4 lakh crore, driven by 23% YoY growth across segments.
GNPA
27 bps
-2 bps YoY
Gross NPA improved from 29 bps in Q4 FY25, stable sequentially.
Opex-to-NTI
19.2%
-260 bps YoY
Operating efficiency improved significantly from 21.8% in Q4 FY25.
Sambhav monthly disbursements
₹400-425 crore
N/A
Sambhav housing loans averaging ₹400-425 crore monthly disbursements, on track for ₹600 crore+ in 12 months.
What Changed vs Last Quarter
NEW
FY27 ROA towards upper end of 2.0-2.2% medium-term range
Management expects ROA to be at the upper end of the medium-term guidance, with margin compression offset by opex efficiencies and lower credit costs.
NEW
Sambhav monthly disbursements to reach ₹600 crore+ in 12 months
Sambhav housing loans are on track to achieve monthly disbursements of ₹600 crore or more over the next 12 months.
NEW
Q1 FY27 NIM likely sideways with slight compression for full year
Net interest margin in Q1 FY27 is expected to be broadly stable vs Q4 FY26, but full-year compression of ~10 bps is anticipated due to portfolio repricing.
DROPPED
NIM compression of 8-10 bps for FY26 vs FY25
Net interest margin expected to compress by 8-10 basis points for the full year FY26 compared to FY25, driven by assignment mix and attrition.
DROPPED
Medium-term cost-to-income ratio target of 14-15% in 3-4 years
Management targets reducing cost-to-income ratio to 14-15% over the next 3-4 years, driven by operating leverage and efficiency improvements.
DROPPED
SBU monthly disbursement run rate of ₹600+ crore in 12-15 months
The near-prime and affordable housing SBU aims to double its monthly disbursement run rate from ₹325-350 crore to over ₹600 crore within 12-15 months.
DROPPED
Medium-term AUM growth guidance of 24-26%
Management reiterated medium-term (3-4 year) AUM growth guidance of 24-26%, contingent on stabilization of attrition and industry growth of 12-14%.
NEW RISK
Elevated money market rates without policy rate hike
If money market rates remain high and the RBI does not hike policy rates, the company's ability to pass on higher funding costs to customers will be limited, compressing spreads.
NEW RISK
Sustained competitive intensity in home loans
Aggressive pricing by banks, especially PSU banks, kept BT-out rates elevated in Q4 FY26, and if this persists, home loan growth and margins could be pressured.
NEW RISK
IHL regulatory compliance risk
The IHL ratio (regulatory definition of home loans as % of total assets) has been contracting and stood at 50.45%, close to the 50% minimum, requiring careful management to avoid regulatory breach.
RISK GONE
Elevated balance transfer attrition
BT out on home loan portfolio is ~20%, with 60-70% of prepayments attributed to balance transfers. This pressure is expected to persist until interest rates stabilize.
RISK GONE
Regulatory capital charge on undisbursed loans
RBI's consolidated circular removed an illustration allowing capital relief on undisbursed tranches of under-construction home loans and construction finance, leading to a sharper Tier 1 decline. Clarity is awaited.
RISK GONE
Intense competition from banks in prime segment
Competitive intensity from PSU banks on pricing remains high in prime and super-prime segments, pressuring spreads and acquisition costs.
RISK GONE
Potential margin compression from lower assignment income
If home loan growth remains subdued relative to non-HL growth, higher assignment may be needed to manage PBC, which could compress NIMs further.
🤫 Topics management stopped discussing
Mentioned in Q2 FY26, Q3 FY26
Management targets reducing cost-to-income ratio to 14-15% over the next 3-4 years, driven by operating leverage and efficiency improvements.
Fast read
Guidance and risk preview
Management expects ROA to be at the upper end of the medium-term guidance, with margin compression offset by opex efficiencies and lower credit costs.
If money market rates remain high and the RBI does not hike policy rates, the company's ability to pass on higher funding costs to customers will b...
View Risks →