Bajaj Housing Finance
Bajaj Housing Finance
Financial ServicesKey Fundamentals
MidcapHousing FinanceFinancial ServicesTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
1- Company has delivered good profit growth of 41.5% CAGR over last 5 years
Weaknesses
5- Stock is trading at 3.11 times its book value
- Though the company is reporting repeated profits, it is not paying out dividend
- Company has low interest coverage ratio.
- Company has a low return on equity of 13.3% over last 3 years.
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 2d agoBajaj Housing Finance Ltd has a market cap of ₹69,592 Cr and trades at a P/E of 26.1x and P/B of 3.12x. The company has delivered strong compounded profit growth of 41% CAGR over 5 years and 25% sales CAGR over 3 years, but carries a 3-year average ROE of only 13% and has seen its stock decline 25% over the past year.
- Strong 5-year compounded profit CAGR of 41%, indicating rapid earnings expansion from a growing housing finance book
- Robust 5-year compounded sales CAGR of 29%, reflecting sustained loan book growth well above the industry average
- 3-year compounded profit growth of 27% demonstrates that earnings momentum has continued in recent years, not just a base effect
- TTM revenue growth of 16% shows the company continues to grow topline even on a larger base
- TTM profit growth of 19% outpaces revenue growth of 16%, suggesting operating leverage and improving margins
- P/E of 26.1x is moderate for a high-growth housing finance company, potentially reasonable if profit growth sustains above 20%
- Backed by the Bajaj Group parentage, which provides strong brand trust, access to capital markets, and operational credibility in lending
- Stock has declined 25% over the past 1 year, signaling significant market skepticism about valuations or growth sustainability
- P/B ratio of 3.12x is elevated for a housing finance company delivering only 13% ROE — a P/B above 3x typically demands ROE closer to 18-20%
- 3-year average ROE of just 13% and last year ROE of 12% indicate subpar capital efficiency for the premium valuation it commands
- Zero dividend yield despite repeated profitability suggests the company is not returning capital to shareholders
- Low interest coverage ratio flagged in known concerns raises questions about the company's ability to comfortably service its debt obligations
- Potential capitalisation of interest costs, if true, would mean reported profits are overstated and actual operating performance is weaker than it appears
- Sales growth has decelerated from 29% (5-year CAGR) to 25% (3-year CAGR) to 16% (TTM), indicating a clear slowdown trajectory
- Debt-to-equity ratio is unavailable in reported data, limiting visibility into the true leverage position of the balance sheet
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 2h ago- Spread compression pressures margins Aug 20
Spreads have declined 23 bps since Sep 2025, with management guiding for a further 20-25 bps YoY decline in FY27. Jefferies expects NIMs to moderate by 30 bps in FY27 as rate cuts force repricing of the existing book.
- Premium valuation limits upside Aug 20
Jefferies initiated with a Hold rating and ₹92 target, implying just 8% upside. Stock trades at 2.6x Mar-27e book and 24x Mar-27e EPS, a premium to most HFC peers with limited room for re-rating.
- Rising non-prime loan mix Aug 20
Bajaj Housing plans to increase non-prime loans to 20% of the home loan book from 12%, targeting the emerging and affordable segment via its Sambhav unit. This could elevate credit risk over time.
- Strong Q1 FY27 earnings growth Aug 20
Net profit rose 22.6% YoY to ₹715 crore in Q1 FY27, total income grew 17% to ₹3,063 crore, and disbursements climbed 30% YoY with AUM up 24%.
- FY26 AUM hits ₹1.4 lakh crore Aug 18
Bajaj Housing reported 23% AUM growth to ₹1.4 lakh crore in FY26, net profit rose 18% YoY to ₹2,560 crore, and GNPA improved to just 27 bps.
- Best-in-class asset quality Aug 20
Gross Stage 3 at 0.29% and Stage 2 at 0.32% as of Jun 2026, among the lowest across HFC peers. Home loans and LRD reported zero gross bad loans; credit costs expected at ~13 bps over FY27-29.
- Peer-leading AUM growth outlook Aug 20
Jefferies forecasts 23% AUM CAGR over FY26-29 to ~₹2.6 lakh crore, with 20% EPS CAGR and net profit rising from ₹2,570 crore in FY26 to ₹4,430 crore by FY29.
- Improving operating leverage Aug 20
Opex-to-AUM has declined from ~1% in FY22 to ~0.8% in FY26, with Jefferies expecting it to fall further to 0.64% by FY28, cushioning earnings against margin pressure.
- ₹2,736 crore NCD fundraise Sep 8
Bajaj Housing raised ₹1,985.65 crore on Sep 8 and ₹750 crore on Aug 20 via secured NCDs at 7.79% coupon, maturing Aug 2031. Routine liability-side activity to fund loan book growth.
- Analyst and investor meetings Aug 19
The company scheduled meetings with analysts and investors on Aug 20, 24, and 26, including the Bajaj Finserv Leadership Day 2026 in Pune. No new financial disclosures were made.
TL;DR: Bajaj Housing Finance is delivering strong growth with 23% AUM expansion, 22.6% profit growth in Q1 FY27, and pristine asset quality at 0.29% GNPA. The key risk is margin compression as rate cuts and competition squeeze spreads, while rich valuations at 2.6x book cap near-term upside per Jefferies. Operating leverage and low credit costs partially offset the NIM headwind, and the trend remains positive on growth metrics even as profitability per unit of AUM may moderate through FY27.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 1,763 | 1,911 | 1,946 | 1,996 | 2,209 | 2,410 | 2,449 | 2,504 | 2,616 | 2,755 | 2,884 | 2,903 | 3,063 |
| Expenses | 165 | 176 | 164 | 219 | 170 | 179 | 210 | 222 | 244 | 253 | 261 | 262 | 233 |
| Financing Profit | 536 | 585 | 582 | 498 | 640 | 718 | 723 | 731 | 765 | 844 | 890 | 878 | 942 |
| Fin. Margin % | 30% | 31% | 30% | 25% | 29% | 30% | 30% | 29% | 29% | 31% | 31% | 30% | 31% |
| Other Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3 | 0 | -13 | 0 | 0 |
| Interest | 1,062 | 1,151 | 1,200 | 1,279 | 1,399 | 1,514 | 1,516 | 1,551 | 1,606 | 1,658 | 1,734 | 1,762 | 1,888 |
| Depreciation | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 11 | 11 | 12 | 12 | 13 | 13 |
| PBT | 526 | 575 | 572 | 488 | 630 | 708 | 713 | 720 | 757 | 833 | 865 | 866 | 929 |
| Tax % | 12% | 22% | 24% | 22% | 23% | 23% | 23% | 18% | 23% | 23% | 23% | 23% | 23% |
| Net Profit | 462 | 451 | 437 | 381 | 483 | 546 | 548 | 587 | 583 | 643 | 665 | 669 | 715 |
| EPS in Rs | 0.69 | 0.67 | 0.65 | 0.57 | 0.62 | 0.66 | 0.66 | 0.7 | 0.7 | 0.77 | 0.8 | 0.8 | 0.86 |
| Gross NPA % | 0.23% | 0.24% | 0.25% | 0.27% | 0.28% | 0.29% | 0.29% | 0.29% | 0.3% | 0.26% | 0.27% | 0.27% | 0.29% |
| Net NPA % | 0.08% | 0.09% | 0.1% | 0.1% | 0.11% | 0.12% | 0.13% | 0.11% | 0.13% | 0.12% | 0.11% | 0.11% | 0.12% |
Profit & Loss
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|
| Revenue | 265 | 3,155 | 3,767 | 5,665 | 7,617 | 9,554 | 11,150 | 11,604 |
| Expenses | 44 | 552 | 624 | 718 | 721 | 759 | 1,007 | 1,009 |
| Financing Profit | 59 | 635 | 986 | 1,733 | 2,201 | 2,814 | 3,381 | 3,554 |
| Fin. Margin % | 22% | 20% | 26% | 31% | 29% | 29% | 30% | 31% |
| Other Income | 0 | 0 | 0 | 0 | 0 | -2 | -14 | -13 |
| Interest | 162 | 1,968 | 2,157 | 3,213 | 4,695 | 5,981 | 6,761 | 7,042 |
| Depreciation | 2 | 22 | 26 | 33 | 40 | 41 | 47 | 49 |
| PBT | 57 | 613 | 960 | 1,700 | 2,161 | 2,770 | 3,320 | 3,492 |
| Tax % | 26% | 26% | 26% | 26% | 20% | 22% | 23% | — |
| Net Profit | 42 | 453 | 710 | 1,258 | 1,731 | 2,163 | 2,560 | 2,692 |
| EPS in Rs | 0.09 | 0.93 | 1.45 | 1.87 | 2.58 | 2.6 | 3.07 | 3.23 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | — |
Balance Sheet
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|
| Equity Capital | 488 | 4,883 | 4,883 | 6,712 | 6,712 | 8,328 | 8,329 |
| Reserves | 70 | 1,149 | 1,858 | 3,791 | 5,521 | 11,619 | 14,194 |
| Borrowing | 2,560 | 31,601 | 41,492 | 53,745 | 69,129 | 82,072 | 1,03,704 |
| Other Liabilities | 19 | 226 | 293 | 406 | 464 | 790 | 920 |
| Total Liabilities | 3,137 | 37,858 | 48,527 | 64,654 | 81,827 | 1,02,809 | 1,27,147 |
| Fixed Assets | 9 | 79 | 97 | 113 | 123 | 141 | 154 |
| CWIP | 0 | 0 | 1 | 0 | 1 | 1 | 0 |
| Investments | 251 | 3,266 | 1,248 | 2,001 | 1,939 | 2,533 | 2,502 |
| Other Assets | 2,878 | 34,513 | 47,180 | 62,540 | 79,765 | 1,00,134 | 1,24,491 |
| Total Assets | 3,137 | 37,858 | 48,527 | 64,654 | 81,827 | 1,02,809 | 1,27,147 |
Cash Flow
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|
| Operating | -1,024 | -5,076 | -12,481 | -14,332 | -14,600 | -17,075 | -19,895 |
| Investing | -69 | -797 | 2,197 | -611 | -555 | -798 | -1,202 |
| Financing | 1,149 | 5,676 | 10,228 | 14,630 | 15,125 | 17,870 | 21,197 |
| Net Cash Flow | 55 | -197 | -55 | -313 | -30 | -2 | 100 |
| Free Cash Flow | -1,027 | -5,089 | -12,508 | -14,362 | -14,640 | -17,111 | -19,938 |
| CFO/OP | -458 | -188 | -389 | -282 | -204 | -187 | -189 |
Ratios
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|
| ROE % | 8% | 14% | 11% | 15% | 15% | 13% | 12% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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46 extracted metrics + investor summaries across FY18–FY27.
Documents
Frequently Asked Questions about Bajaj Housing Finance
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Company Information
Founded in 2008, Bajaj Housing Finance is a non-deposit-taking Housing Finance Company (HFC) registered with the National Housing Bank (NHB) since 2015 and has been offering mortgage loans.[1]It is a 100% subsidiary of Bajaj Finance Limited — one of the most diversified NBFCs in the Indian market. BHFL offers finance to individuals as well as corporate entities for the purchase and renovation of homes, or commercial spaces. It also provides loans against property for business or personal needs as well as working capital for business expansion purposes. BHFL also offers finance to developers engaged in the construction of residential and commercial properties as well as lease rental discounting to developers and HNIs.[2]
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