Bajaj Housing Finance Q3 FY26 Results: PAT Surges 21% to ₹665 Crore with Robust NII Growth of 19%
Bajaj Housing Finance reported strong Q3 FY26 results, with profit after tax surging 21% year-over-year to ₹665 crore and net interest income rising 19%. This performance reflects robust loan growth and controlled costs amid a competitive housing finance market.
Key Financial Highlights
- Profit After Tax (PAT) Growth: PAT reached ₹664.89 crore for the quarter ended December 31, 2025 (Q3 FY26), marking a 21% year-over-year increase from ₹548 crore in Q3 FY25, primarily fueled by higher core earnings from expanded loan assets and improved net interest margins.
- Net Interest Income (NII) Expansion: NII climbed to ₹963 crore, up 19% from ₹806 crore a year earlier, reflecting robust asset under management (AUM) growth and stable yield spreads despite competitive funding costs.
- Net Total Income Surge: Net total income jumped 24% YoY to ₹1,153 crore, driven by a combination of higher interest income and fee-based revenues from increased disbursements and customer onboarding.
- Profit Before Tax (PBT) Increase: PBT grew 21.25% to ₹864.54 crore, supported by strong top-line growth and controlled provisioning expenses relative to the loan book size.
- Revenue from Operations Rise: Revenue from operations increased 16.16% YoY to ₹2,697.30 crore, encompassing interest income on housing loans and ancillary products like loans against property.
- Efficiency Ratio Improvement: The operating expenses to net total income ratio improved to 19% from 19.8% in Q3 FY25, indicating enhanced operational efficiency through digital processes and scale benefits.
- Loan Losses and Provisions: Loan losses and provisions rose to ₹56 crore from ₹35 crore YoY, attributable to portfolio expansion, though partially mitigated by a ₹10 crore release of management overlay provisions.
- Contextual Impact on Margins: These metrics highlight Bajaj Housing Finance’s ability to grow profitability faster than revenue, with NII and PAT outpacing AUM growth amid low asset quality stress (GNPA at 0.27%).
Assets Under Management
AUM expanded 23% YoY to ₹1,33,412 crore as of December 31, 2025, from ₹1,08,314 crore. Quarterly AUM growth stood at ₹6,652 crore. Loan assets reached approximately ₹1,17,290 crore, up from ₹95,570 crore a year earlier.
Gross disbursements surged 31.5% to ₹16,535 crore from ₹12,571 crore, highlighting strong origination momentum. This growth underscores the company's expanding presence in home loans and related products.
Balance Sheet Strength
The company maintained a solid capital adequacy ratio of 23.15%, including Tier-II capital. Gross NPA stood at 0.27% and net NPA at 0.11% as of December 31, 2025, improved from 0.29% and 0.13% a year ago. Provisioning coverage ratio on stage-3 assets was 59%.
An exceptional item of ₹13.14 crore impacted expenses due to higher gratuity liability from New Labour Codes changes in November 2025. Credit ratings remained top-tier: AAA/Stable for long-term debt and A1+ for short-term from CRISIL and India Ratings.
Nine-Month Performance
For the nine months ended December 31, 2025, PAT rose to ₹1,891.15 crore from ₹1,576.22 crore. Total income reached ₹8,256.49 crore. This sustained growth builds on prior quarters, with Q3 FY25 PAT at ₹548 crore and earlier momentum.
Growth Drivers
Strong disbursement growth fueled AUM expansion, supported by demand in affordable housing segments. Net interest margin stability contributed to NII gains, despite rising interest expenses. Cost efficiency improvements helped profitability outpace revenue growth.
The Bajaj Group's backing and digital capabilities likely aided customer acquisition and low NPAs. Market share gains in a recovering real estate sector post-regulatory easing also played a role.
Industry Context
India's housing finance sector saw robust demand in FY26, driven by urbanization and government schemes like PMAY. Peers reported similar AUM growth around 20-25%, but Bajaj Housing Finance's asset quality edged ahead with sub-0.3% GNPA. Regulatory focus on HFCs emphasized capital buffers, where the company excels at 23% CAR.
Competition from banks intensified, yet NBFC-HFCs like Bajaj maintained niches in semi-urban lending. Economic recovery in 2025, with stable interest rates, supported loan originations.
Future Outlook
Sustained AUM growth above 20% appears feasible with ongoing disbursements. Management likely eyes NIM stability and digital scaling for FY26. Potential IPO listing post-demerger from Bajaj Finance could enhance visibility.
Challenges include interest rate volatility and competition, but low NPAs and high CAR position it well. Analysts may view the 21% PAT growth as a positive signal for valuations.
| Metric | Q3 FY26 | Q3 FY25 | YoY Growth |
| PAT (₹ crore) | 665 | 548 | 21% |
| NII (₹ crore) | 963 | 806 | 19% |
| AUM (₹ crore) | 1,33,412 | 1,08,314 | 23% |
| Gross Disbursements (₹ crore) | 16,535 | 12,571 | 31.5% |
| GNPA (%) | 0.27 | 0.29 | Improved |
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