Bajaj Housing Q3 PAT Rises 21% YoY to ₹665 Cr; NII Up 15%

As per Bajaj Housing Finance Ltd, the third quarter of FY26 registered a gain of 21% year-on-year on net profit due to positive growth in loan assets, increases in net interest income (NII), and operating indicators. According to the exchange filing by the company, the company reported a consolidated net profit of ₹665 crore in the quarter ended 31 December 2025, which is up against the previous ₹548 crore in Q3FY25.

Loan Book and Asset Under Management Expansion

Bajaj Housing’s Assets Under Management (AUM) expanded sharply in Q3FY26, rising 23% year-on-year to ₹1.33 lakh crore, compared with ₹1.08 lakh crore in the year-ago quarter. The company’s loan assets also grew by 23% to ₹1.17 lakh crore, up from ₹95,570 crore in Q3FY25, reflecting continued momentum in retail housing finance and targeted disbursement growth.

Net Total Income and Gratuity

Total operating income for the quarter recorded a double-digit rise, with net total income increasing 24% to ₹1,153 crore in Q3FY26, from ₹933 crore in Q3FY25.

Bajaj Housing reported an exceptional item during the quarter which amounted to ₹13.14 crore, and this amount primarily represented a one-time expense that resulted from increased gratuity liability. The adjustment occurred because of new labour codes which the Government of India introduced on 21 November 2025.

Profit Before Tax Shows Strong Growth

The pre-tax earnings also increased strongly during the quarter at Bajaj Housing Finance. The profit before tax (PBT) grew 21% year on year to ₹865 crore in Q3FY26 as opposed to ₹713 crore in the same quarter in the previous financial year.

Asset Quality Remains Strong; Capital Buffers Comfortable

Bajaj Housing Finance reported a modest increase in credit costs during the quarter, with loan losses and provisions rising to ₹56 crore in Q3FY26, compared with ₹35 crore in Q3FY25. The prior-year figure included a management overlay release of less than ₹10 crore, which partly explains the year-on-year increase in provisioning.

Despite higher provisions, asset quality metrics remained stable and strong. By the end of December 2025, the gross non-performing asset (GNPA) ratio of the company was 0.27%, which is slightly lower than 0.29% the previous year. The net NPA also increased to 0.11%, compared to 0.13%, as of December 31, 2024, to reveal strict underwriting and recoveries.

The provisioning coverage ratio (PCR) on Stage 3 assets was maintained at around 59%, indicating an adequate buffer against stressed exposures.

Bajaj Housing remained in a favourable position in terms of solvency on the capital front. Capital adequacy ratio (CAR), inclusive of Tier-II capital, was 23.15% as of 31 December 2025, leaving enough buffer capacity to accommodate the future expansion, as well as absorb the possible credit volatility.

Bajaj Housing Finance still enjoys a solid funding profile supported by the best credit ratings. CRISIL and India Ratings have rated the company as having an AAA/Stable rating on its long-term debt programme.

On its short-term borrowings, both CRISIL and India Ratings have quoted A1+, which is the highest level of confidence that the company has a high liquidity position, high capital strength, and capacity to meet the near-term obligations.

What Does This Mean for Investors?

The Q3FY26 performance of Bajaj Housing is an indication of growth in volume, revenue stability, costs, and capitalisation. The 23% increase in AUM and loan assets, combined with a 24% expansion in net total income and a 15% increase in NII, reflects its continued momentum in its main business segments. The increase in the efficiency of operating and the availability of a capital cushion offer further background to the assessment of the sustainability of the future earnings.

Investors should monitor future earnings for margin trends, asset quality performance, and capital deployment efficiency as interest rate cycles change and housing demand continues to shape credit markets.

Source:

Economic Times