Bajaj Housing Finance reported a 21 per cent increase in net profit for the quarter ended December 31, 2025, signalling resilience in India’s housing finance sector despite macroeconomic pressures. The company’s profit after tax rose to Rs 665 crore from Rs 549 crore in the corresponding period last year, while total income expanded 18 per cent to nearly Rs 2,886 crore.
The quarter’s results were driven by sustained growth in the company’s assets under management (AUM), which climbed 23 per cent to Rs 1.33 lakh crore, reflecting robust loan demand across both affordable and mid-segment housing. Loan provisioning remained conservative at Rs 56 crore, highlighting effective credit risk management in a market where interest rates and property prices are increasingly influential on repayment behaviour. Key balance sheet indicators underline Bajaj Housing Finance’s strong financial position. As of December 31, 2025, the company maintained a debt-to-equity ratio of 4.49 and a capital adequacy ratio of 23.15 per cent, signalling adequate buffers for continued lending. Gross non-performing assets (NPA) were negligible at 0.27 per cent, with net NPAs even lower at 0.11 per cent, suggesting that portfolio quality remains robust amid expanding loan volumes. The company’s liquidity coverage ratio of 146 per cent positions it well to meet short-term obligations, while a net profit margin of 23 per cent demonstrates operational efficiency. Senior analysts note that such performance is indicative of the stabilisation of housing finance in urban and semi-urban India, where rising household incomes and government incentives for homebuyers are supporting both demand and repayment capacity.
Urban and infrastructure development trends further reinforce the sector’s growth potential. With metro expansions, peripheral urbanisation, and the rise of Tier-2 and Tier-3 residential markets, housing finance providers are increasingly able to diversify risk across micro-markets while contributing to inclusive urban growth. Bajaj Housing Finance’s expanded lending footprint and disciplined asset allocation align with responsible finance practices, helping facilitate access to sustainable, long-term housing. From a policy perspective, low NPAs and strong capitalisation allow lenders to participate in government-driven affordable housing programmes and urban redevelopment initiatives, supporting zero-carbon, resilient urbanisation. Housing finance firms that maintain strong credit hygiene while scaling operations are likely to remain central to the expansion of India’s formal housing sector.
Looking forward, Bajaj Housing Finance’s board has appointed an independent director for a five-year tenure from March 2026, reflecting strengthened governance practices. Combined with robust earnings and portfolio health, these moves suggest that the company is well-positioned to navigate evolving regulatory and market dynamics, while contributing to responsible, equitable residential development across Indian cities.
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Bajaj Housing Finance Posts 21 Percent Net Profit Rise
