BajajHousingFinance – Bajaj Housing Finance reported a strong performance for the third quarter, posting double-digit growth across key financial metrics as loan demand remained firm and asset quality stayed stable. The company’s latest earnings, announced after market hours on Monday, highlighted continued momentum in its housing finance business despite broader market volatility.
The lender recorded a notable increase in profitability during the quarter ended December 2025, supported by higher interest income and expanding assets under management.
Net profit for the third quarter rose 21 percent year-on-year to Rs 664 crore, compared with Rs 548.02 crore in the same period last year. The improvement in earnings reflected a consistent rise in interest income and disciplined cost management.
Profit before tax also increased at a similar pace, reaching Rs 865 crore in Q3, up from Rs 713 crore a year earlier. Profit after tax stood at Rs 665 crore, marking another year-on-year growth of 21 percent and underlining the company’s stable earnings trajectory.
Revenue for the quarter came in at Rs 2,886 crore, registering an 18 percent rise from Rs 2,449 crore reported in the corresponding quarter of the previous financial year. The growth was driven by higher disbursements and an expanding loan book.
Total income rose even faster, climbing 24 percent to Rs 1,153 crore from Rs 933 crore in the year-ago period. Net interest income increased by 19 percent to Rs 963 crore in Q3 FY26, compared with Rs 806 crore in Q3 FY25, reflecting healthy spreads and sustained demand for housing loans.
Bajaj Housing Finance continued to scale its balance sheet during the quarter. Assets under management stood at Rs 1,33,412 crore as of December 2025, representing a 23 percent increase from Rs 1,08,314 crore recorded a year earlier.
The expansion in AUM indicates steady traction in the housing finance segment, supported by both retail and developer-focused lending. Management has consistently highlighted housing credit as a key long-term growth driver for the company.
The company maintained a strong asset quality profile during the quarter. Gross non-performing assets stood at 0.27 percent as of December 31, 2025, marginally lower than 0.29 percent reported a year earlier. Net NPAs also improved to 0.11 percent from 0.13 percent over the same period.
Provisioning coverage on stage 3 assets remained comfortable at around 59 percent, reflecting a prudent approach toward risk management and balance sheet protection.
Bajaj Housing Finance continues to enjoy the highest credit ratings for its debt programmes. Its long-term debt carries a AAA stable rating from CRISIL and India Ratings, while short-term borrowings are rated A1+ by both agencies. These ratings underscore the company’s strong balance sheet, robust liquidity position, and conservative risk framework.
Shares of Bajaj Housing Finance ended marginally lower at Rs 89.68, down 0.06 percent, on the day the earnings were announced. The stock has seen notable volatility over recent months despite the company’s solid operational performance.
After listing in late 2024 at a premium of more than 100 percent over its initial public offering price, the stock went on to hit a post-listing high of Rs 188.5. Since then, it has corrected sharply, declining 22.2 percent over the past six months. In the last one month alone, the stock fell 9.63 percent, nearly double the decline seen in the benchmark Sensex during the same period.
Market participants remain constructive on the company’s long-term prospects. According to Deven Choksey, Managing Director at DRChoksey FinServ Pvt. Ltd., Bajaj Housing Finance is well positioned to benefit from sustained growth in housing credit demand.
He noted that the company’s increasing use of technology and artificial intelligence to onboard customers could further strengthen its business model. With housing finance expected to see significant expansion over the coming years, Bajaj Housing Finance is viewed as being well placed to capitalize on this structural growth trend.
