Bajaj Housing Finance – Shares of Bajaj Housing Finance came under pressure on Wednesday, slipping nearly 2% in early trade as investors positioned themselves ahead of the company’s third-quarter results, scheduled for release later in the day. The decline reflects short-term caution in the market rather than a shift in long-term expectations, as most domestic brokerages continue to project a solid performance for the quarter under review.
Market analysts remain largely optimistic about Bajaj Housing Finance’s operational momentum during the December quarter. According to estimates from Kotak Institutional Equities, the lender is likely to report strong year-on-year growth in both net interest income and profit, supported by steady expansion in its loan book. Assets under management are estimated to have grown by about 5.2% sequentially during the quarter, translating into an annual growth rate of roughly 23%.
Kotak’s projections suggest that net interest margins may see a modest contraction of around 8 basis points on a quarter-on-quarter basis, settling near 3.4%. This is attributed to a sharper decline in yields, which is expected to be partially offset by a reduction in borrowing costs. Despite this marginal pressure on margins, net interest income is estimated to rise sharply, reflecting the underlying scale-up of the business.
On the profitability front, Kotak Institutional Equities estimates that net interest income for the quarter could reach approximately ₹989.9 crore, marking a growth of nearly 23% compared with the same period last year. Profit after tax is also projected to post a healthy increase, with year-on-year growth estimated at close to 19%, even as quarter-on-quarter growth is expected to remain modest.
Another brokerage, Motilal Oswal Financial Services, has slightly more optimistic expectations. It pegs net interest income growth at over 24% year-on-year, with quarterly figures potentially crossing the ₹1,000 crore mark. Net profit, according to its estimates, could rise by more than 23% on an annual basis, reflecting improved operating leverage and stable asset quality.
Despite the positive earnings outlook, Bajaj Housing Finance’s stock performance over recent months has remained under strain. The company made a strong debut on the stock exchanges in late 2024, listing at a premium of more than 100% over its initial public offering price. The shares went on to hit a post-listing high of ₹188.5, making it one of the standout listings of that year.
However, the rally proved difficult to sustain. Since peaking, the stock has witnessed a steady correction, weighed down by broader market volatility and sector-specific concerns. Over the past six months, the share price has declined by over 22%, reflecting a sharp reversal from its early highs.
Shorter-term trends also highlight the relative underperformance of the stock compared with the broader market. In the last one month alone, Bajaj Housing Finance shares have fallen close to 10%, almost double the decline recorded by the Sensex during the same period. Over a three-month horizon, the stock has dropped by more than 20%, while the benchmark index has seen only a marginal decline.
Looking at longer time frames, the contrast becomes even more pronounced. On a one-year basis, the stock has delivered negative returns of around 25%, against a positive gain posted by the Sensex. Year-to-date figures also show the company lagging the benchmark, with the stock registering losses while the index remains relatively stable.
Another development that has drawn investor attention is a reduction in promoter shareholding. During the previous quarter, promoters trimmed their stake by about 2%, bringing their total holding down to 86.7% of the company’s equity. While the reasons behind the move have not been detailed, such changes are often closely watched by the market for signals on promoter confidence.
From a balance sheet perspective, Bajaj Housing Finance continues to maintain a strong capital base. As of September 30, 2025, the company reported a net worth of ₹21,170 crore, providing a solid foundation to support future growth and lending activity.
At the time of writing, the stock was trading around ₹87.81, with investors awaiting the official earnings announcement for clearer direction.
