Bajaj Housing Finance Q2 FY27 Results Analysis: AUM Surges 24.8%, NIM Compression On Track (BAJAJHFL)
Bajaj Housing Finance Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 3,250.57 Cr (+18.30% YoY) and PAT growth of +17.70% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 16, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 3,250.57 Cr (+18.30% YoY) |
| PAT (Q2) | Rs. 756.97 Cr (+17.70% YoY) |
| EPS (Q2) | Rs. 0.91 (+18.20% YoY) |
| Market cap | Rs. 69,566.71 Cr |
| CMP | Rs. 83.49 |
Quarter Snapshot
Bajaj Housing Finance delivered AUM growth of 24.8% YoY to Rs.1,58,205 Cr, ahead of its 21–23% FY27 guidance, with PAT up 17.7% YoY to Rs.757 Cr and six other guided metrics (Opex/NTI, GNPA, credit cost, PCR, ROA, ROE) within their stated bands. NII growth of 10.4% trailed AUM growth as finance costs rose 20.4% YoY and new NCDs priced at 7.53–7.87% versus the Q1 blended CoF of 7.2%, tracking management's guided 20–25 bps FY27 NIM compression. Fee income of Rs.125 Cr (+81% YoY) and a 57 bps cost-to-income improvement to 19.06% supported PPOP growth of 15.9% YoY.
Key Investment Insights
Key Positives
- AUM grew 24.8% YoY to Rs.1,58,205 Cr, ahead of management's 21–23% FY27 guidance range
- PAT grew 17.7% YoY to Rs.757 Cr in Q2 and 20.1% YoY to Rs.1,472 Cr in H1
- Fee and commission income grew 81% YoY to Rs.125 Cr, lifting NTI growth to 15.0% versus NII's 10.4%
- Cost-to-income improved 57 bps YoY to 19.06%; PPOP grew 15.9% YoY to Rs.1,015 Cr
- GNPA at 29 bps is below the guided 30–35 bps band; PCR improved 127 bps QoQ to 59.80%
- Credit cost of ~10.6 bps annualized is within the guided 10–15 bps range, with provisions down 18.8% YoY
- Lease rental discounting AUM grew 39.2% YoY and loan against property grew 26.2% YoY
- Debt-equity at 4.92x is below the guided 5.8–6.3x range; ROA of 2.2% and ROE of 12.7% are within guidance
Risk Factors
- NII grew 10.4% YoY against AUM growth of 24.8%, confirming NIM compression; management guided 20–25 bps compression for FY27
- Finance costs grew 20.4% YoY, outpacing interest income growth of 16.8%; NCDs were raised at 7.53–7.87% versus the Q1 blended CoF of 7.2%
- Credit cost rose sequentially to ~10.6 bps annualized from 5 bps in Q1, though within the 10–15 bps guided range
- CRAR declined to 21.24% from 26.12% YoY and the liquidity coverage ratio fell to 146.25% from 175.73% YoY
- GNPA rose to 0.29% from 0.26% YoY, and net gain on fair value changes declined 13.8% YoY to Rs.24.19 Cr
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.