Bajaj Housing’s Double-Edged Quarter: Stellar Profits Meet Margin Jitters

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Bajaj Housing Finance Ltd. recorded another exceptional quarter, solidifying its position as a high-achieving NBFC with impeccable growth momentum and robust asset quality for Q4 FY25.

Highlights:

Profit Soars: Net profit has grown 54% year on year to ₹587 crore compared to ₹381 crore in the previous year due to strong disbursements in loans and increase in net interest income. At the end of the year, profit after tax increased 25% to ₹2,770 crore.
Revenue & NII Growth: Revenue increased 26% YoY to ₹2,508 crore, while net interest income (NII) rose 24–31% to ₹823–958 crore, indicating healthy lending activity and stable margins.
AUM Expansion: Assets Under Management (AUM) expanded 26% YoY, crossing ₹1.14 lakh crore, with home loans constituting 56% of the portfolio. Disbursements during the quarter amounted to ₹14,254 crore, a rise of 25%.
Asset Quality Remains Robust: Gross NPA was a low 0.29% and net NPA at 0.11%, only slightly higher than last year, reflecting prudent risk management in the face of accelerated growth. Loan losses and provisions reduced to ₹30 crore in Q4.
Operational Efficiency: Operating expenses to net total income reduced to 21.7% from 27% a year ago, favoring profitability.
Capital & Market Response: Capital adequacy is strong at 28.24%, significantly higher than regulatory requirements. Shares increased by up to 4% after results, reflecting market confidence.

Bajaj Housing Finance's steady growth and stable asset quality reflect its sound fundamentals, although analysts point out increasing competition may squeeze future margins.

Sources: Groww, Economic Times, Business Today, Moneycontrol, CNBC-TV18, INDmoney