Bajaj Housing Finance reported a strong first half for FY27, with AUM growing 25% to Rs 1,58,205 crore and PAT rising 20% to Rs 1,472 crore. The company maintains solid asset quality with stable Net NPA at 0.12% and strong capital adequacy, supported by its digital-first distribution and the successful scaling of its 'Sambhav' loan segment.
Bajaj Housing Finance H1 FY27 Net Profit Rises 20% to Rs 1,472 Crore
Assets under management surged 25% YoY to Rs 1,58,205 crore; Net NPA remains steady at 0.12%.
Reader Takeaway: Strong loan growth and improved operational efficiency underpin performance, though investors should track guidance for margin moderation.
What just happened
Bajaj Housing Finance Ltd (BHFL) has released its financial performance for the first half of FY27, ending September 30, 2026. The lender reported a 20% increase in Profit After Tax (PAT) to Rs 1,472 crore, supported by a 16% growth in Net Total Income to Rs 2,429 crore. AUM expansion remained robust, hitting Rs 1,58,205 crore.
Why this matters
The results highlight the company's ability to maintain high growth rates while keeping asset quality stable. Gross NPA stood at 0.29%, while Net NPA remained unchanged at 0.12%, demonstrating strong underwriting standards. The company's focus on digital adoption—with 96% of retail logins processed digitally—continues to drive operational efficiency.
Strategic Developments
Growth is being anchored by the 'Sambhav' loan segment, which targets near-prime and affordable housing. This segment now accounts for 16% of home loan originations, with monthly volumes exceeding Rs 500 crore. Distribution footprint has expanded to 223 branches across 182 locations, complemented by an approved project finance network of over 10,300 projects.
FY27 Outlook
Management expects AUM growth between 21% and 23% for the full year. Key targets include an opex-to-income ratio of 19-20% and an ROE projection of 12-13%. Investors should note the anticipated NIM moderation of 20-25 basis points as the company balances growth with current market conditions.
Context Metrics
The company maintains a Capital Adequacy Ratio (CRAR) of 21.24%, significantly higher than the 15% regulatory requirement. Loan loss provisions fell to Rs 51 crore compared to Rs 81 crore in the year-ago period, reflecting better asset recovery performance.