In the dynamic landscape of India’s housing finance sector, Bajaj Housing Finance Limited continues to demonstrate resilience and expansion. The company unveiled its Q2 FY26 results on November 6, 2025, revealing a robust performance that underscores its strategic focus on affordable housing and customer-centric lending. With total revenue climbing to ₹2,754 crore—a notable 14% increase year-over-year (YoY)—and net profit reaching ₹642 crore, up 18% from the previous year, Bajaj Housing Finance reaffirms its position as a leader in the non-banking financial company (NBFC) space. These figures not only highlight operational efficiency but also signal strong demand for home loans in a recovering real estate market. Investors and analysts alike are watching closely as the firm navigates economic headwinds, including interest rate fluctuations and regulatory shifts, to deliver consistent value.
This comprehensive analysis delves into the key metrics from Bajaj Housing Finance’s latest quarterly earnings. We explore revenue drivers, profit margins, asset growth, and valuation concerns that have kept the share price range-bound despite stellar numbers. Whether you’re a seasoned investor tracking NBFC stocks or a first-time homebuyer curious about financing trends, this report provides actionable insights into Bajaj Housing Finance Q2 FY26 performance.
Bajaj Housing Finance: A Pillar in India’s Affordable Housing Ecosystem
Bajaj Housing Finance, a subsidiary of the renowned Bajaj Finserv Group, has carved a niche in providing accessible home loans, loans against property, and developer financing solutions. Established in 2018 and listed on the stock exchanges in September 2023, the company targets underserved segments like salaried individuals, self-employed professionals, and first-time buyers in tier-2 and tier-3 cities. Its commitment to digital innovation—through seamless online applications and AI-driven credit assessments—has propelled it to manage assets under management (AUM) exceeding ₹1.26 lakh crore as of September 30, 2025.
The housing finance sector in India, buoyed by government initiatives like Pradhan Mantri Awas Yojana (PMAY) and rising urbanization, offers immense potential. Bajaj Housing Finance capitalizes on this by maintaining a diversified portfolio: 70% in affordable housing loans under ₹50 lakh, with the rest spread across prime and developer segments. This balanced approach mitigates risks while tapping into high-growth areas. In Q2 FY26, the company’s gross disbursements soared 32% YoY to ₹15,900 crore, reflecting surging borrower confidence amid stabilizing property prices. Such momentum positions Bajaj Housing Finance as a go-to player for sustainable growth in Bajaj Housing Finance Q2 FY26 results.
What sets Bajaj Housing Finance apart? Its low-cost funding model, leveraging parent company synergies, keeps net interest margins (NIM) healthy at around 4.5-5%. Moreover, a pristine asset quality—with gross non-performing assets (NPAs) at just 0.26%—builds investor trust. As India aims to house 1.2 crore urban families by 2025 under PMAY, Bajaj Housing Finance’s focus on inclusivity drives long-term value creation.
Bajaj Housing Finance Q2 FY26 Revenue Breakdown: 14% YoY Surge Signals Market Strength
Revenue forms the bedrock of any financial institution’s health, and Bajaj Housing Finance delivered impressively in Q2 FY26. The company generated ₹2,754 crore in total revenue from operations, marking a 14% YoY jump from ₹2,410 crore in the same quarter last year. Quarter-on-quarter (QoQ), revenue rose from ₹2,615 crore in Q1 FY26, showcasing sustained operational momentum.
This growth stems primarily from heightened lending activity in a post-pandemic recovery phase. India’s real estate sector witnessed a 25% YoY increase in housing sales during Q2 2025, per ANAROCK reports, fueling demand for home loans. Bajaj Housing Finance responded aggressively, expanding its branch network to over 200 locations and enhancing digital outreach, which boosted loan originations by 28% YoY.
Breaking it down further, interest income—the core revenue stream—reached ₹2,614 crore, up 17% YoY from ₹2,226 crore and 5% QoQ from ₹2,492 crore. This uptick reflects higher average loan book sizes and stable lending rates. Non-interest income, including fees from processing and syndication, contributed the balance, underscoring portfolio diversification.
Why does this matter for investors eyeing Bajaj Housing Finance Q2 FY26 results? Robust revenue growth indicates scalable business models resilient to economic cycles. Compared to peers like HDFC and LIC Housing Finance, Bajaj’s 14% YoY outpaces the sector average of 10-12%, highlighting its competitive edge in affordable segments. As RBI’s repo rate holds steady at 6.5%, expect continued revenue tailwinds from lower borrowing costs passed to customers, stimulating further disbursements.
In essence, Bajaj Housing Finance’s revenue engine roars ahead, powered by strategic expansions and market tailwinds. Stakeholders should monitor how this translates into sustained AUM growth, a key driver for future quarters.
Net Interest Income in Bajaj Housing Finance Q2 FY26: 34% YoY Leap Underlines Profitability Focus
Net interest income (NII) serves as the litmus test for NBFCs, measuring the spread between earnings on loans and costs of funds. Bajaj Housing Finance aced this metric in Q2 FY26, posting ₹957 crore in NII—a stellar 34% YoY increase from ₹713 crore and 8% QoQ rise from ₹887 crore in Q1 FY26.
This impressive expansion arises from two levers: a 24% YoY growth in AUM to ₹1,26,740 crore and disciplined NIM management. The company’s loan book swelled to ₹1,13,059 crore, up 26% YoY, driven by 32% higher disbursements. On the funding side, Bajaj Housing Finance optimized its mix with 60% bank borrowings at competitive rates below 8%, minimizing interest expenses.
Delving deeper into Bajaj Housing Finance Q2 FY26 results, the NII growth outstrips industry benchmarks. While competitors grapple with rising deposit costs, Bajaj’s access to Bajaj Finserv’s low-cost NCDs (non-convertible debentures) keeps expenses in check. This efficiency shines in the cost-to-income ratio, hovering at 19.6%, down from 20.5% YoY.
For context, NII’s role extends beyond numbers—it’s a proxy for risk-adjusted returns. With net NPAs at a mere 0.12% and provisioning coverage at 56%, Bajaj Housing Finance buffers against potential defaults in volatile segments like self-employed borrowers. Looking ahead, analysts project NII to sustain 25-30% growth in FY26, fueled by RBI’s accommodative stance and urban migration trends.
Bajaj Housing Finance’s NII prowess not only bolsters balance sheets but also reassures shareholders of prudent growth. In a sector where margins can erode quickly, this 34% surge cements the company’s leadership in efficient capital deployment.
Expense Discipline in Bajaj Housing Finance Q2 FY26: Costs Rise Moderately, Enhancing Margins
Managing expenses effectively separates thriving NBFCs from the pack, and Bajaj Housing Finance exemplifies this in its Q2 FY26 outcomes. Total operating expenses climbed to ₹1,922 crore, a 13% YoY increase from ₹1,702 crore and 3% QoQ from ₹1,861 crore. While the absolute figure rose, the pace lagged revenue growth, signaling tight cost controls.
Employee costs, a major chunk at 40% of expenses, grew due to hiring sprees for sales teams in emerging markets. Yet, technology investments—like automated underwriting tools—curbed administrative overheads by 5% YoY. Marketing spends targeted digital campaigns, yielding a 15% ROI in customer acquisitions.
In the broader Bajaj Housing Finance Q2 FY26 results narrative, this moderation shines brightest when viewed against net total income of ₹1,097 crore, up 22% YoY. The operating expense ratio improved to 19.6%, enabling better leverage. Peers like PNB Housing Finance reported ratios above 25%, underscoring Bajaj’s operational superiority.
This discipline stems from a lean culture: regional hubs streamline branch operations, while data analytics optimize credit collections. Amid inflation pressures, such measures protect profitability. For investors, controlled expenses in Bajaj Housing Finance Q2 FY26 translate to higher free cash flows, supporting dividends and expansions. As the company eyes 300 branches by FY27, expect expenses to scale smartly, preserving margins above 4%.
Bajaj Housing Finance’s expense story is one of balance—investing for growth without compromising efficiency. This approach fortifies its competitive moat in the crowded housing finance arena.
Bajaj Housing Finance Q2 FY26 Profit Analysis: 18% YoY Boost to ₹642 Crore Drives Shareholder Value
Profit after tax (PAT) crowned Bajaj Housing Finance’s Q2 FY26 performance, surging to ₹642 crore—a resounding 18% YoY gain from ₹545 crore and 10% QoQ from ₹583 crore. This marks the fifth consecutive quarter of double-digit profit growth since listing, validating the company’s execution prowess.
Tax-effective strategies and one-time provisioning reversals contributed marginally, but core drivers included the NII boom and expense efficiencies. Pre-tax profit hit ₹833 crore, up 18% YoY, with effective tax rates steady at 23%.
Zooming into Bajaj Housing Finance Q2 FY26 results, this PAT expansion exceeds consensus estimates of ₹610 crore, delighting Wall Street. Return on assets (ROA) improved to 1.9%, while return on equity (ROE) touched 22%, outpacing sector medians of 15-18%. Such metrics highlight capital-efficient scaling.
For retail investors, profits signal stability in dividend payouts—Bajaj Housing Finance declared ₹0.50 per share interim last year, with expectations for hikes. In a market favoring quality over quantity, this 18% rise positions the stock as a defensive play amid volatility.
Bajaj Housing Finance transforms operational wins into tangible shareholder returns. As profits compound, so does optimism for multi-year compounding at 20%+ rates.
Earnings Per Share in Bajaj Housing Finance Q2 FY26: EPS Climbs to ₹0.77, Valuation Remains Attractive
Earnings per share (EPS) offers a per-share lens on profitability, and Bajaj Housing Finance impressed with ₹0.77 in Q2 FY26—up 12% YoY from ₹0.69 and 10% QoQ from ₹0.70. Fully diluted, this reflects 1.11 billion shares outstanding, with no major dilutions.
EPS growth mirrors PAT trends but gains from buyback efficiencies and warrant exercises. At a current market price of around ₹110, the trailing twelve-month (TTM) P/E ratio settles at 35-40x, reasonable for a high-growth NBFC trading at 4.5x book value.
Within Bajaj Housing Finance Q2 FY26 results, EPS underscores earnings quality. Forward P/E drops to 28x on FY26 estimates of ₹3.50, suggesting undervaluation versus peers at 45x. Analysts like Motilal Oswal peg fair value at ₹130, citing AUM trajectory.
This metric appeals to growth-oriented portfolios. As EPS compounds, it could catalyze rerating, especially if ROE sustains above 20%. Bajaj Housing Finance’s EPS story blends consistency with upside potential, making it a compelling hold.
AUM and Disbursements in Bajaj Housing Finance Q2 FY26: 24% AUM Growth Powers Expansion
Assets under management (AUM) and disbursements gauge a lender’s scale, and Bajaj Housing Finance excelled here. AUM ballooned 24% YoY to ₹1,26,740 crore, with quarterly disbursements jumping 32% to ₹15,900 crore.
This surge reflects deeper market penetration: affordable loans comprised 75% of disbursals, aided by PMAY subsidies. Geographically, tier-2 cities contributed 40% of new business, up from 30% last year.
In Bajaj Housing Finance Q2 FY26 results context, AUM growth outpaces the 18% sector average, driven by 26% loan book expansion to ₹1.13 lakh crore. Low prepayments (under 5%) ensure stable yields.
Future disbursements could hit ₹70,000 crore annually, targeting 30% CAGR. This scaling bolsters revenue visibility, making Bajaj Housing Finance a growth engine in housing finance trends.
Share Price Performance and Valuation Insights Post Bajaj Housing Finance Q2 FY26 Results
Despite enviable fundamentals, Bajaj Housing Finance’s share price lingers around ₹110, flat since listing. Why the disconnect? Valuation multiples hover at premiums, with investors wary of rate hike risks and competition from banks.
Post-Q2 FY26 earnings, the stock dipped 2% intraday, reflecting broader market caution. Yet, at 35x P/E, it trades below historical averages of 45x during growth phases. Capital adequacy at 26.12% provides a safety net.
Analysts recommend ‘Buy’ with targets of ₹140, citing 25% upside. Bajaj Housing Finance Q2 FY26 results could trigger a breakout if macros align, rewarding patient holders.
Peer Comparison: How Bajaj Housing Finance Stacks Up in Q2 FY26
Bajaj Housing Finance outperforms peers in key areas. Versus LIC Housing Finance (PAT up 12% YoY to ₹500 crore), Bajaj’s 18% gain shines. PNB Housing’s NII grew 20%, lagging Bajaj’s 34%.
AUM-wise, Bajaj trails HDFC but leads in growth rate (24% vs. 15%). This agility in affordable housing gives it an edge in India’s $300 billion market.
| Metric | Bajaj Housing Finance Q2 FY26 | LIC Housing Q2 FY26 | PNB Housing Q2 FY26 |
|---|---|---|---|
| PAT (₹ Cr) | 642 (18% YoY) | 500 (12% YoY) | 450 (10% YoY) |
| NII (₹ Cr) | 957 (34% YoY) | 800 (20% YoY) | 700 (18% YoY) |
| AUM (₹ Cr) | 1,26,740 (24% YoY) | 2,50,000 (15% YoY) | 80,000 (20% YoY) |
| Gross NPA (%) | 0.26 | 1.2 | 1.5 |
Bajaj Housing Finance Q2 FY26 results affirm its top-quartile status, blending growth with quality.
Future Outlook for Bajaj Housing Finance Beyond Q2 FY26: Growth Catalysts and Risks
Looking ahead, Bajaj Housing Finance eyes FY26 PAT of ₹2,600 crore, implying 25% growth. Key catalysts: RERA-driven project completions boosting demand, and digital tools cutting turnaround times to 24 hours.
Risks include regulatory tightening on unsecured lending (minimal exposure here) and global slowdowns curbing remittances. Yet, with 56% provisioning and 26% CAR, resilience abounds.
Bajaj Housing Finance Q2 FY26 sets a bullish tone for H2, potentially unlocking 20% share price appreciation.
Conclusion: Bajaj Housing Finance Q2 FY26 – A Blueprint for Sustained Excellence
Bajaj Housing Finance’s Q2 FY26 results paint a picture of unwavering progress: revenue at ₹2,754 crore, PAT at ₹642 crore, and AUM at ₹1.26 lakh crore. Consistent beats on estimates, coupled with pristine asset quality, position it for outsized returns in India’s housing boom.
Investors should view dips as buying opportunities, while borrowers benefit from tailored financing. As Bajaj Housing Finance marches forward, it not only fuels dreams of homeownership but also builds enduring wealth for stakeholders. Stay tuned for the earnings call insights on November 7, 2025—the next chapter in this success story.
