Bajaj Housing Finance Ltd (BAJAJHFL) Q1 FY27 Results Analysis: PAT Jumps 22.6%, NIM Compression Persists

Bajaj Housing Finance Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 3,063.02 Cr (+17.23% YoY) and PAT growth of +22.63% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

BAJAJHFL delivered strong Q1FY27 with 24% AUM growth and 22.6% PAT growth, driven by fee income surge and improved cost efficiency. However, NIM compression from rising finance costs and home loan growth lagging the overall AUM are key watchpoints. The company continues to gain market share in the HFC space.

Key Investment Insights

Key Positives

• Revenue from operations grew 17.2% YoY to Rs.3,063 Cr
• PPOP grew 19% YoY to Rs.945 Cr, driven by NTI growth and operating leverage
• PAT grew 22.6% YoY to Rs.715 Cr
• AUM grew 24% YoY to Rs.1,49,624 Cr, with disbursements up 33% YoY to Rs.19,509 Cr
• Cost-to-income ratio improved 160 bps to 19.6%
• Fees and commission income rose 81% YoY to Rs.105.84 Cr, and impairment fell 58% YoY to Rs.16.10 Cr

Risk Factors

• NIM compression: NII growth of 9.1% YoY lagged AUM growth of 24%
• Finance costs rose 17.6% YoY, outpacing interest income growth of 14.6%, reflecting cost of funds headwind
• Home loan growth of 20% YoY lagged total AUM growth, indicating competitive pressure in prime home loans
• CAR declined from 26.94% to 21.59% as balance sheet grew, though still well above 15% regulatory minimum