Bajaj Housing Finance: Business Overview & Financial Analysis
Bajaj Housing Finance Limited is a non-banking financial company (NBFC) and housing finance company (HFC) headquartered in Pune, Maharashtra. Promoted by Bajaj Finance Limited and part of the Bajaj Group, the company provides housing and real estate finance solutions to individual retail home buyers, self-employed professionals, micro, small and medium enterprises (MSMEs), and commercial real estate developers across India. The company operates through a national distribution footprint spanning 215 physical locations across 174 cities, supported by digital channels, omni-channel sourcing partners, and developer tie-ups.
Key Financial Ratios of Bajaj Housing Finance (Q4 FY26)
Bajaj Housing Finance maintained financial metrics across capital efficiency, asset quality, and profitability.
- Capital Adequacy Ratio (CRAR) – 26.85%
- Tier-I Capital Ratio – 25.82%
- Net Interest Margin (NIM) – 3.82%
- Gross Stage 3 Ratio (GNPA) – 0.28%
- Net Stage 3 Ratio (NNPA) – 0.11%
- Provision Coverage Ratio (PCR) – 61.20%
- Return on Assets (ROA) – 2.35%
- Return on Equity (ROE) – 14.82%
The company maintained a capital adequacy ratio of 26.85% as of 31 March 2026, well above the regulatory requirement of 15.00%. Asset quality remained high with a Net Stage 3 ratio of 0.11% and a Gross Stage 3 ratio of 0.28%.
AUM & Loan Portfolio Mix of Bajaj Housing Finance (Q4 FY26)
Bajaj Housing Finance derives the majority of its Assets Under Management (AUM) from salaried retail home loan borrowers.
- Individual Home Loans – 57.2%
- Loan Against Property (LAP) – 10.4%
- Lease Rental Discounting (LRD) – 18.2%
- Developer Finance – 8.8%
- Rural Housing & Others – 5.4%
- Total Assets Under Management (AUM) – Rs 1,14,820 crore (+26.0% YoY)
Individual home loans and lease rental discounting constitute 75.4% of total AUM. Home loan portfolio expansion was supported by salaried customer sourcing, where 86% of individual home loan borrowers belong to salaried profiles with high credit bureau scores.
Sourcing Channels & Customer Profile of Bajaj Housing Finance (Q4 FY26)
Bajaj Housing Finance sources customers through direct channels, developer networks, and cross-selling.
- Salaried Borrowers Share in Home Loans – 86.0%
- Average Ticket Size (Home Loans) – Rs 46.0 lakh
- Average Loan-to-Value (LTV) Ratio (Home Loans) – 58.2%
- Direct & Developer Network Sourcing Share – 62.0%
- Bajaj Group Ecosystem Sourcing Share – ~25.0%
Salaried borrowers form 86% of individual home loan accounts, with an average ticket size of Rs 46.0 lakh and an average LTV ratio of 58.2%. Direct developer networks and cross-selling across the existing customer base of parent entity Bajaj Finance drive lower customer acquisition costs.
Funding Profile & Borrowing Mix of Bajaj Housing Finance (Q4 FY26)
Bajaj Housing Finance maintains a diversified borrowing base to optimize interest expenses and asset-liability duration matching.
- Non-Convertible Debentures (NCDs) – 44.0%
- Bank Term Loans – 38.0%
- National Housing Bank (NHB) Refinance Lines – 10.0%
- Commercial Paper – 8.0%
- Total Outstanding Borrowings – Rs 92,450 crore
- Weighted Average Cost of Borrowings – 7.64%
Long-term non-convertible debentures and bank term loans account for 82% of total liabilities. The weighted average cost of borrowing stood at 7.64% during Q4 FY26, supporting net interest margins.
Asset Quality & Provisioning Metrics of Bajaj Housing Finance (Q4 FY26)
Bajaj Housing Finance tracks asset quality across Stage 1, Stage 2, and Stage 3 loan classifications under IND-AS accounting standards.
- Gross Stage 3 Assets – Rs 321.5 crore (0.28% of AUM)
- Net Stage 3 Assets – Rs 126.3 crore (0.11% of AUM)
- Stage 2 Assets Share – 0.84% of AUM
- Total Credit Cost (Annualised) – 0.12%
- Management Provision Buffer – Rs 285 crore
Gross Stage 3 assets remained at 0.28% of total AUM, while annualised credit costs stood at 0.12%. The company maintains an unencumbered management provision overlay of Rs 285 crore above standard regulatory requirement levels.
Geographic Distribution & Branch Footprint of Bajaj Housing Finance (Q4 FY26)
Bajaj Housing Finance operates across primary residential property markets and Tier-1/Tier-2 urban centers.
- • Total Physical Touchpoints – 215 locations across 174 cities
- • Top 4 States Revenue Contribution – Maharashtra, Karnataka, Telangana, and New Delhi/NCR (~68% of AUM)
- • Customer Touchpoint Types – 122 standalone branches and 93 sub-offices
Physical presence spans 215 locations across 174 cities, with primary concentration across high-density urban housing markets in Maharashtra, Karnataka, Telangana, and NCR.
Latest Quarterly Financial Performance of Bajaj Housing Finance (Q4 FY26)
Bajaj Housing Finance recorded top-line interest income expansion and net profit growth in the fourth quarter of FY26.
- Total Income – Rs 2,412.5 crore (+22.4% YoY)
- Net Interest Income (NII) – Rs 785.2 crore (+18.6% YoY)
- Profit Before Tax (PBT) – Rs 682.4 crore (+21.2% YoY)
- Profit After Tax (PAT) – Rs 512.6 crore (+21.8% YoY)
- Total Disbursements (Q4 FY26) – Rs 14,250 crore (+18.0% YoY)
Quarterly disbursements reached Rs 14,250 crore in Q4 FY26, bringing full-year FY26 disbursements to Rs 52,100 crore. Profit After Tax rose 21.8% year-on-year to Rs 512.6 crore, supported by lower credit costs and operating leverage.
Credit Ratings & Capital Structure of Bajaj Housing Finance (FY26)
Bajaj Housing Finance maintains high domestic credit ratings for its long-term and short-term debt instruments.
- Long-Term Non-Convertible Debentures Rating – IND AAA / Stable (India Ratings) / CRISIL AAA / Stable
- Subordinated Debt Rating – IND AAA / Stable (India Ratings)
- Commercial Paper Rating – IND A1+ (India Ratings) / CRISIL A1+
- Bank Loan Facilities Rating – IND AAA / Stable (India Ratings)
India Ratings and CRISIL reaffirmed "IND AAA / Stable" and "CRISIL AAA / Stable" ratings for the company's long-term debt programs, reflecting strong parent support from Bajaj Finance and low portfolio delinquency rates.
Management Commentary & Strategic Guidance of Bajaj Housing Finance (FY26–FY27)
Management guidance highlights operational targets focused on retail home loan expansion, asset quality control, and digital sourcing.
- Management targets sustaining annual AUM growth in the 22%–25% range over the medium term, driven by retail salaried home loans.
- Salaried home loans and lease rental discounting will remain the core Focus verticals, maintaining low portfolio credit risk.
- Net Interest Margin (NIM) is guided to stay in the 3.6%–3.9% band, supported by low borrowing costs and high credit ratings.
- Credit costs are projected to remain below 0.20% of AUM through automated underwriting and collection tools.
- Branch network expansion will prioritize Tier-2 and Tier-3 urban peripheral locations to capture emerging housing demand.
Sources & References
- Bajaj Housing Finance Limited Q4 & Full Year FY26 Financial Results & Press Release (April 2026)
- Bajaj Housing Finance Limited Q4 FY26 Investor Presentation (April 2026)
- India Ratings and Research Rating Rationale for Bajaj Housing Finance Limited
- BSE India & NSE Official Corporate Filings for Bajaj Housing Finance Limited
- Ticker Finology Bajaj Housing Finance Page
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Disclaimer
The information presented above on Bajaj Housing Finance Limited has been compiled from the company's Annual Reports, Investor Presentations, Earnings Call (Concall) Transcripts, official regulatory filings and the financial data available on Finology Ticker. Certain figures, classifications or comparisons may vary due to differences in accounting policies, reporting methodologies or subsequent restatements by the company. This content is intended solely for informational purposes and should not be considered as investment advice. Investors are advised to refer to the latest company filings and the updated financial data, ratios and disclosures available on this Finology Ticker Bajaj Housing Finance Limited page before making any investment decision. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.