Bajaj Housing Finance Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Bajaj Housing Finance Ltd filed with BSE on 04 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Bajaj Housing Finance reported AUM growth of 23% year-on-year, crossing Rs 140,000 crores, with PBT up 20% and PAT up 14%, or 20% excluding a one-time tax benefit in the base quarter. Asset quality remained stable with GNPA at 27 bps and NNPA at 11 bps, while net interest margin declined 12 bps sequentially to 3.8% on lower acquisition yields and a PLR pass-through. Management said it increased Stage 2 provisioning coverage as a prudence measure and discussed expectations for margin and cost of funds trends into FY27.
Numbers mentioned
AUM growth: 23% (FY26)
p. 3
“Overall, a good quarter across AUM, asset quality and operating efficiency, where AUM grew 23% crossing INR140,000 crores of AUM during the quarter.”
Atul Jain, page 3 of the filed PDF · View the filing
PBT growth: 20% (Q4 FY26)
p. 3
“PBT grew 20% while PAT was up by 14% due to one-time tax benefit of ~INR34 crores in Q4 FY25, excluding which normalized PAT growth also would have been 20% for Q4 FY26.”
Atul Jain, page 3 of the filed PDF · View the filing
Opex to NTI: 19.2% (Q4 FY26)
p. 3
“Opex to NTI has improved to 19.2% in the last quarter compared to 21.8% in last quarter of FY25”
Atul Jain, page 3 of the filed PDF · View the filing
GNPA: 27 bps (Q4 FY26)
p. 3
“asset quality has remained stable with GNPA at 27 bps, which is stable sequentially while year-on-year there was an improvement from 29 bps to 27 bps”
Atul Jain, page 3 of the filed PDF · View the filing
Net NPA: 11 bps (Q4 FY26)
p. 4
“Net NPA remains at 11 bps and annualized credit cost at 19 bps for the quarter.”
Atul Jain, page 4 of the filed PDF · View the filing
Capital Adequacy Ratio: 22.46% (Q4 FY26)
p. 4
“The company maintains comfortable capital adequacy position with CAR at 22.46% and PBC at 60.88%, both above regulatory thresholds.”
Atul Jain, page 4 of the filed PDF · View the filing
Net worth: INR22,527 crores (March 2026)
p. 5
“As of March '26, net worth of the company stood at INR22,527 crores.”
Atul Jain, page 5 of the filed PDF · View the filing
Net interest margin: 3.8% (Q4 FY26)
p. 4
“Net interest margin for the quarter dropped by 12 bps sequentially from 4% in Q3 FY26 to 3.8% in Q4 FY26, largely due to moderation in net interest income as I explained above.”
Atul Jain, page 4 of the filed PDF · View the filing
Cost of funds: 7.3% (Q4 FY26)
p. 4
“Year-on-year cost of funds have moderated by 60 bps to 7.3% against 7.9% in Q4 FY25.”
Atul Jain, page 4 of the filed PDF · View the filing
Gross spread: 1.7% (Q4 FY26)
p. 4
“Gross spreads overall have moderated by 10 bps to 1.7% in Q4 FY26, comparing to 1.8% in Q3 FY26 on a sequential basis.”
Atul Jain, page 4 of the filed PDF · View the filing
PAT: INR669 crores (Q4 FY26)
p. 5
“Profit after tax, as called out, grew 14% from INR587 crores to INR669 crores, while excluding one-time impact it grew 20%.”
Atul Jain, page 5 of the filed PDF · View the filing
ROA: 2.3% (Q4 FY26)
p. 5
“Annualized ROA was 2.3% in Q4 FY26 compared to 2.4% in Q4 FY25, while ROE was stable at 12.2% against 12.1% in Q4 FY25.”
Atul Jain, page 5 of the filed PDF · View the filing
Net interest income growth: 25% (FY26)
p. 5
“Coming to full year performance, net interest income grew 25% to INR3,752 crores in FY26 and net total income increased to INR4,391 crores, a growth of 23% over the previous year.”
Atul Jain, page 5 of the filed PDF · View the filing
Full year credit cost: 17 bps (FY26)
p. 5
“Credit cost for the full year was 17 bps against 7 bps in FY25.”
Atul Jain, page 5 of the filed PDF · View the filing
ROE: 12.1% (FY26)
p. 5
“ROA as called out stood at 2.3% against 2.4% and ROE at 12.1% in FY26 compared to 13.4% in FY25.”
Atul Jain, page 5 of the filed PDF · View the filing
Sambhav AUM: close to INR9,000 crores (Q4 FY26)
p. 14
“So close to INR9,000 crores is the Sambhav AUM now roughly.”
Atul Jain, page 14 of the filed PDF · View the filing
Fee income: INR297 crores (FY26)
p. 18
“So fee income last year was INR200 crores and this year it was INR297 crores, broadly driven by insurance income and some part of foreclosure income.”
Gaurav Kalani, page 18 of the filed PDF · View the filing
Floating rate borrowings: 63% (Q4 FY26)
p. 13
“Floating rate borrowings are today 63%. That is including the OIS portion.”
Atul Jain, page 13 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
ROA — 2 to 2.2% · medium term
stated conditionally by Atul Jain
p. 10
“It should be towards the upper end of the medium term guidance may not beat that.”
Atul Jain, page 10 of the filed PDF · View the filing
ROA — 10 bps decline · FY27
stated conditionally by Atul Jain
p. 10
“Yes, so 10 bps of a kind of a differential in ROA is likely to happen in case of a NIM compression but see there are many ifs and buts, that's why I said that Q1 we'll do.”
Atul Jain, page 10 of the filed PDF · View the filing
Cost of funds — minor reduction of 2-3 bps · Q1 FY27
stated conditionally by Atul Jain
p. 11
“It will be marginally sideways, like we were saying sideways, 2-3 bps of a reduction should come because there is some reset of the borrowings”
Atul Jain, page 11 of the filed PDF · View the filing
Portfolio yield — Q1 FY27
stated conditionally by Gaurav Kalani
p. 9
“So yields in quarter 1 -- there would be slight compression.”
Gaurav Kalani, page 9 of the filed PDF · View the filing
Full year FY27 guidance — along with Q1 FY27 results
stated firmly by Atul Jain
p. 10
“This year also we'll give a full assessment for the year in along with the quarter 1 call.”
Atul Jain, page 10 of the filed PDF · View the filing
Loan growth — 2x of industry
stated as an aspiration by Atul Jain
p. 17
“we would want to be significantly ahead the way we always want to grow 2x of industry, that is what we always stated and we want to grow and we want to continue there is no change in the growth stance of the company”
Atul Jain, page 17 of the filed PDF · View the filing
PLR
stated conditionally by Atul Jain
p. 13
“I don't think there is any cut scenario further in the PLR which is envisaged as of today.”
Atul Jain, page 13 of the filed PDF · View the filing
Sambhav monthly disbursements — INR600 crores plus · next 12 months
stated as an aspiration by Atul Jain
p. 6
“business is well on track to achieve INR600 crores plus of a monthly disbursement over next 12 months as we called out in the last update”
Atul Jain, page 6 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management clarified the regulatory IHL number versus home loan mix and detailed the breakdown of attrition into BT-out, part payments and sell-downs.
Answered by Atul Jain
Asked by Shubhranshu Mishra: What is the IHL percentage of AUM and what is driving prepayments/BT-out?
p. 7
“attrition is ~20%, BT-out would be 14% BT-out would be in the range of 10%. BT-out range will be 10%, so out of a total attrition of a 20%, BT-out will be 10%, rest would be on account of a sell-down, sale of property by the customer or the part payment or the natural attrition”
Atul Jain, page 7 of the filed PDF · View the filing
Management said public sector banks are the largest recipients, followed by HDFC and ICICI.
Answered by Atul Jain
Asked by Shubhranshu Mishra: Who is receiving the BT-out customers?
p. 7
“So this is largely the banks. Public sector banks are the largest component, followed by HDFC or ICICI.”
Atul Jain, page 7 of the filed PDF · View the filing
Management attributed it to lower acquisition pricing and the delayed pass-through of a PLR cut and repo-linked rate cut.
Answered by Atul Jain
Asked by Gaurav Khandelwal: What drove the 12 bps margin decline this quarter?
p. 8
“margin decline of a 12 bps is largely driven by lower acquisition price and also 15 bps of a pass-through what we had done in our PLR in December”
Atul Jain, page 8 of the filed PDF · View the filing
Management said Q1 yields could see slight compression while cost of funds may see marginal benefit.
Answered by Gaurav Kalani
Asked by Gaurav Khandelwal: Will yields remain stable in Q1 FY27?
p. 9
“So yields in quarter 1 -- there would be slight compression. We'll see there also while cost of funds side also we'll see some marginal benefit of 3 to 5 basis points.”
Gaurav Kalani, page 9 of the filed PDF · View the filing
Management gave yield ranges for home loans, LAP, LRD and developer finance.
Answered by Gaurav Kalani
Asked by Raghav: What are segment-wise on-book yields for FY26?
p. 11
“home loans would be in around 8.5-8.6 corridor, LAP would be around 150 bps above that, LRD around 7.9-8% corridor, and developer finance would be 11.5-11.75 corridor”
Gaurav Kalani, page 11 of the filed PDF · View the filing
Management said the increase was a prudence measure with no micro-level stress observed in the portfolio.
Answered by Atul Jain
Asked by Viral Shah: Was the Stage 2 PCR increase driven by observed delinquency trends?
p. 14
“Just to protect ourselves we just thought that we will increase our Stage 2 coverage. Purely from a prudence point of view from the current market current macro environment. No micro input has gone in this.”
Atul Jain, page 14 of the filed PDF · View the filing
Management said money market rates remain significantly elevated, pricing in a large potential rate hike.
Answered by Atul Jain
Asked by Abhijit Tibrewal: Are money market rates still elevated in April compared to March?
p. 16
“Yes, money market continues to be at a significantly elevated portion even today as well.”
Atul Jain, page 16 of the filed PDF · View the filing
Management said fee income is expected to grow in line with overall business growth, while assignment income acts as a balancing factor depending on home loan versus non-home loan mix.
Answered by Atul Jain
Asked by Nischint Chawathe: Will fee and assignment income continue to grow ahead of loan growth?
p. 18
“Fee income versus –”
Atul Jain, page 18 of the filed PDF · View the filing
Risks flagged
Elevated money market borrowing costs due to volatility and expectations of a policy rate hike
p. 16
“Because it is going to the rupee as a rupee largely rupee and expectations of, if you look at an OIS today, it prices in a 75 bps kind of a rate hike scenario, which I'm not fully certain.”
Atul Jain, page 16 of the filed PDF · View the filing
High competitive intensity from public and private sector banks pressuring pricing and BT-out rates
p. 15
“quarter 4 February, March we saw significant high intensity competitive activity in the market on the pricing side from both public sector banks as well as the private sector bank”
Atul Jain, page 15 of the filed PDF · View the filing
Margin compression expected through FY27 due to older higher-priced book attriting and lower-priced new book accumulating
p. 9
“through the year we are likely to see some compression because largely the new acquisition as the old acquisition keeps on attriting”
Atul Jain, page 9 of the filed PDF · View the filing
No ability to pass through higher cost of funds absent a policy rate change
p. 10
“We are assuming a scenario where the money market rates are higher but the policy rates are not moved up, so our ability to pass through is not there.”
Atul Jain, page 10 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.