Bajaj Housing Finance Q2 PAT Rises 18% to Rs 757 Crore

Profit growth outpaces interest-income growth

Bajaj Housing Finance reported an 18% year-on-year increase in profit after tax to Rs 757 crore for the second quarter of FY27, alongside a 25% expansion in assets under management. The Indian housing lender’s earnings rose as income increased, its operating-expense ratio improved and loan losses and provisions declined.

Profit in the corresponding quarter of FY26 was Rs 643 crore. Economic Times Markets reported the results, citing the company’s exchange filing. The figures show that the pace of profit growth exceeded the increase in net interest income, although it remained below the rate of expansion in assets under management.

Net interest income reached Rs 1,055 crore, up 10% from Rs 956 crore in Q2 FY26. Net total income grew faster, increasing 15% to Rs 1,254 crore from Rs 1,090 crore. These are separate income measures and should not be read as interchangeable indicators of the lender’s performance.

Expense ratio improves; provisions decline

The operating-expenses-to-net-total-income ratio fell to 19.1% from 19.7% a year earlier. The lower ratio means operating expenses accounted for a smaller share of net total income during the quarter. It does not, by itself, establish that operating expenses fell in absolute rupee terms.

Loan losses and provisions declined to Rs 35 crore from Rs 43 crore in the comparable period. That reduction accompanied the increase in income and the improvement in the expense ratio, giving the results a broader earnings picture than the headline profit number alone.

Taken together, the reported measures distinguish three parts of the quarter’s performance: income generation, operating costs relative to income, and charges for loan losses and provisions. The supplied results account does not include management commentary explaining the individual drivers behind the changes.

AUM reaches Rs 1.58 lakh crore; gross NPAs edge up

Assets under management stood at Rs 1,58,205 crore on September 30, 2026, compared with Rs 1,26,749 crore on September 30, 2025. The reported 25% increase places the size of the lending business at roughly Rs 1.58 lakh crore at the end of the quarter.

Asset quality was broadly steady, but the gross and net measures moved differently. Gross non-performing assets were 0.29%, against 0.26% a year earlier. Net non-performing assets remained at 0.12%. The unchanged net ratio therefore should not obscure the small increase in the gross ratio.

The provisioning coverage ratio for Stage 3 assets was 60%. Capital adequacy, including Tier-II capital, stood at 21.24% on September 30, 2026. These figures provide additional context on provisions and capital alongside the reported loan-book growth; the source account does not provide year-earlier comparisons for either measure.

For readers assessing an Indian housing lender, the distinction between expansion and asset quality matters: a larger portfolio describes scale, while non-performing-asset ratios describe a different aspect of the business. This quarter’s figures show strong expansion alongside a modest rise in the gross NPA ratio.

Shares finish lower despite higher earnings

Bajaj Housing Finance shares closed Friday’s NSE session at Rs 83.36, down 0.50% from the previous close of Rs 83.78. The closing market capitalisation was approximately Rs 69,458 crore.

The stock had fallen 13.22% in 2026 so far and had traded between Rs 72.65 and Rs 112.40 over the preceding 52 weeks. Those market figures place the earnings announcement against a weaker year-to-date share-price performance.

The supplied account does not establish why the stock declined on Friday or attribute the move to a specific part of the results. The trading figures and quarterly earnings should therefore be treated as separate reported observations, rather than evidence of a confirmed investor response to any one metric.

Ratings and regulatory background

Bajaj Housing Finance is a subsidiary of Bajaj Finance and a non-deposit-taking housing finance company. It registered with the National Housing Bank in 2015, began operations in 2017 and has been listed on the NSE and BSE since September 2024.

The company is classified as an Upper Layer NBFC under the Reserve Bank of India’s Scale Based Regulation framework. Its long-term debt programme carries AAA/Stable ratings from CRISIL and India Ratings, while both agencies assign A1+ ratings to its short-term debt programme.

The supplied results account contains no forward earnings guidance, lending-growth target or announced next-step timetable. Its principal update is therefore the reported quarterly performance: higher profit and income, an expanded asset base, lower provisions and largely stable asset quality.