Bajaj Housing Finance (BAJAJHFL) investor relations material

Executive summary

• Achieved highest-ever quarterly AUM growth of 24% YoY to ₹1,49,624 crore and disbursement growth of 33% YoY, with PAT up 23% YoY to ₹715 crore and stable annualized ROA at 2.3%.

• Operating efficiency improved, with opex to net total income at 19.6% versus 21.2% YoY; asset quality remained resilient with GNPA at 0.29% and NNPA at 0.12%.

• Portfolio well-diversified: home loans comprise 54.1% of AUM, with strong growth in lease rental discounting (41% YoY) and developer finance (19% YoY).

• Maintains highest credit ratings for both long-term and short-term debt, and continued digital and AI initiatives to enhance efficiency and customer experience.

Financial highlights

• Disbursement grew 33% YoY to ₹19,509 crore; AUM up 24% YoY to ₹1,49,624 crore.

• Net total income rose 16% YoY to ₹1,175 crore; net interest income up 9% YoY to ₹968 crore.

• Profit before tax up 23% YoY to ₹929 crore; PAT increased 23% YoY to ₹715 crore.

• Portfolio yield at 8.9%, cost of funds at 7.2%, and gross spread stable at 1.7%.

• Operating expenses to net total income improved to 19.6% from 21.2% YoY.

Outlook and guidance

• NIM expected to moderate by 20-25 bps in FY 2027 due to yield compression; AUM growth guidance at 21-23%.

• Operating efficiency projected at 19%-20%; ROA guidance at 2.1%-2.3%, ROE at 12.5%-13%.

• Asset quality expected to remain healthy with GNPA at 30-35 bps and credit cost at 10-15 bps.

• Leverage likely to end FY 2027 at 6.1x.