Bajaj Housing Finance shares jump 6% after Q3 net profit soars 21% YoY

Synopsis

Bajaj Housing Finance shares rose sharply on Tuesday after the company reported a strong Q3 show. Its net profit soared 21% YoY to Rs 665 crore, signalling strong growth momentum. Strong NII growth, a 23% rise in AUM, and robust asset quality supported sentiment, though technical indicators pointed to cautious short-term momentum.

Shares of Bajaj Housing Finance jumped as much as 5.65% to an intraday high of Rs 94.77 on Tuesday, after the company posted a 21% YoY rise in net profit to Rs 665 crore in Q3FY26, signalling strong growth momentum.

For the December quarter, net profit climbed to Rs 665 crore from Rs 548 crore in the year-ago period. This growth was supported by a 19% increase in net interest income (NII), which rose to Rs 963 crore from Rs 806 crore in the same period last year. NII, the core income a lender earns from interest on loans after accounting for interest paid on deposits and borrowings, serves as a key measure of a finance company’s profitability.

Bajaj Housing Finance’s Assets Under Management (AUM)—a measure of the total value of loans it manages—grew 23% year-on-year to Rs 1.33 lakh crore, with loan assets rising to Rs 1.17 lakh crore from Rs 95,570 crore. This growth reflects the company’s expanding loan book and market presence.

The company’s net total income jumped 24% YoY to Rs 1,153 crore, while operating efficiency improved, with operating expenses falling slightly to 19% of net total income from 20% in the previous year.

Bajaj Housing Finance also reported a one-time exceptional item of Rs 13.14 crore, related to an increase in gratuity liability following changes in India’s New Labour Codes issued in November 2025.

Asset Quality Remains Strong:

Loan losses and provisions for Q3FY26 stood at Rs 56 crore versus Rs 35 crore a year ago. Despite the increase, the company’s asset quality remains robust, with Gross NPA at 0.27% and Net NPA at 0.11%, slightly lower than last year’s 0.29% and 0.13%, respectively.

The capital adequacy ratio, a key measure of financial stability, stood at a healthy 23.15%, ensuring the company has sufficient capital to absorb risks. Bajaj Housing Finance continues to enjoy top-notch credit ratings: AAA/Stable for long-term debt and A1+ for short-term debt from both CRISIL and India Ratings.

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Bajaj Housing Finance technical snapshot

In summary, strong earnings, rising AUM, and solid asset quality are driving investor confidence, though technical indicators show some near-term caution.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

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