BAJAJHFL
Large CapBajaj Housing Finance Limited
Financial Services
Bajaj Housing Finance Limited (BHFL) is an Indian housing finance company offering a full suite of mortgage products including home loans, lease rental discounting (LRD), loans against property (LAP), and developer financing (DF). It aims to be a large mortgage player with a focus on scale, low risk, and reasonable returns.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 2/8 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 50/100Rev +16% YoY · PAT +14% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,903 Cr | +15.9% | +0.7% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹669 Cr | +14.0% | +0.6% |
| PAT margin | 23.1% | -39 bps | -1 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
BHFL reported strong AUM and NII growth of 23% and 25% YoY respectively for FY26, with improved operating efficiency (Opex to NTI at 19.7%) and better-than-target asset quality (GNPA 0.27%). However, credit costs rose significantly, and ROA/ROE saw slight moderation.
The company largely met or exceeded its FY26 financial targets, demonstrating robust AUM growth and operational efficiency. While asset quality remained strong, the notable increase in loan loss provisions warrants close monitoring for future periods, as ROA and ROE saw slight declines.
Portfolio Mix as of 31st Mar’26
Latest issuer-disclosed distribution across 5 reported categories.
Home Loans Penetration
Aim to increase market share to 5% in incremental home loan originations from current ~2.5-2.7%.
Growing All Products
Focus on growing all products (HL, LRD, DF, LAP) across Prime and Sambhav customer segments.
Digitalization & Operating Efficiencies
Building operating efficiencies and digitalizing processes to reduce Opex to NTI to 14-15%.
Developer Financing Relationships
Leveraging developer financing funded relationships and 9,400+ APF network for customer access.
Housing Finance Sector Growth
Home loans industry grew 13.4% CAGR (FY20-26E) and is expected to grow 14-16% CAGR till FY28.
Government Impetus
Housing finance sector remained resilient due to Government impetus of 'Housing for All'.
Demographic & Economic Factors
Rising per capita income and demand for larger homes post-Covid support sector growth.
Increased Loan Losses
Loan losses and provisions increased 112% YoY in Q4 FY26 and 229% YoY for FY26, indicating rising credit costs.
Competitive Prime Segment
Housing finance is a matured industry dominated by banks, making the prime segment highly competitive for a late entrant like BHFL.
Moderating HFC Share
HFCs' market share moderated from 21.3% (FY20) to 18.3% (FY25), indicating competitive pressure from banks.
Asset Quality Management
Maintaining low GNPA (target 40-60 bps) is a strategic pillar, but credit cost increased significantly in FY26.
ALM Mismatch
Mortgage is a long-term asset business requiring long-term liabilities to avoid ALM mismatch.
Execution Risk in New Segments
Investment phase in near prime (next 1 year) and affordable (next 2 years) segments carries inherent execution and credit risk.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The document primarily presents annual financial results for FY26 compared to FY25, and also provides Q4 FY26 vs Q4 FY25, indicating that year-over-year comparison is most relevant for assessing overall annual performance and growth trends.
AUM Growth
AUM grew 23% YoY to 140,706 Cr in FY26, meeting the 21-23% assessment.
Net Interest Income (NII)
NII increased 25% YoY to 3,752 Cr in FY26.
Operating Expenses to Net Total Income (Opex to NTI)
Opex to NTI improved to 19.7% in FY26, better than the 20-21% assessment.
Gross NPA (%)
Gross NPA stood at 0.27% in FY26, better than the 35-40 bps assessment and lowest among large players.
Market Share Ambition
Management aims to become a large mortgage player and increase market share to 5% in incremental home loan originations.
Optimized Product Mix
Will optimize product mix with 2-3% movement between products based on risk-adjusted returns.
Digital Transformation
Continue to digitalize processes for ease, enhanced controllership, and Opex to NTI reduction to 14-15%.
Treasury Optimization
Focus on balancing floating and fixed rate liabilities for optimized cost of fund to enable competitive lending.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Incremental Home Loan Market Share | ~2.5-2.7% | Progress towards 5% market share in incremental home loan originations. |
| Opex to NTI | 19.7% (FY26) | Further reduction towards the 14-15% target. |
| GNPA | 0.27% (FY26) | Maintenance within the 40-60 bps target range. |
| Credit Cost | 0.17% (FY26) | Stabilization or reduction, especially given the significant YoY increase. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
The company expects to see an additional 10 basis points of benefit on its cost of funds during the balance part of the year.
Full-year margins are expected to remain within the guided range of 15-20 bps compression due to portfolio attrition pressure.
The company expects to achieve an opex-to-NTI ratio of 14% to 15% over the next three to four years.
The company's business model is constructed to target 40 to 60 bps of GNPA and 20 to 25 bps of credit cost in the medium term.
The parent company has until September 2029 to dilute its shareholding to meet the 25% minimum public shareholding requirement.
Gross spread is expected to normalize going forward, driven by portfolio rate pass-throughs and an expected rate cut in December.
The near prime and affordable housing business segment is expected to scale up and grow at a much faster pace next year.
Outcome check: Revenue YoY averaged 15.9% across 1 later quarter(s).
The company expects to return to its normalized medium-term AUM growth guidance by next year as attrition pressure stabilizes.
Outcome check: Revenue YoY averaged 15.9% across 1 later quarter(s).
Trend score and candlestick chart
42NeutralSMA20 -6.4% / mo
Technical chart
BAJAJHFLweekly · 3Y-38.0%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 44. Wait for confirmation.
- SMA20 falling (~6.8% over last month) — short-term momentum negative.
- RSI(14) at 44 — rising, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 32% off 52W high · 16% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 17.1%.
- Growth contributes 19/25 to the score.
- Valuation contributes 5/30 to the score.
Main drags
- Altman Z is 0.6, in distress territory.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Balance sheet is weaker at 0/15; verify the latest quarterly trend.
NBFC valuation: P/B, ROA, borrowing cost, and asset quality
Lenders can look optically cheap before credit losses emerge, so valuation is tied to book quality.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Weak Trust: Management has 50% delivered/partly-delivered outcomes on 2 checked claims, with 1 adverse claim outcome. It ranks around the 13th percentile of the scored universe and 25th percentile within Financial Services. Main check: balance sheet trust is weak at 22/100.
Mixed Trust Lite: Promoter holding is 86.7%. Key concern: Operating cash flow is negative at ₹-19895 Cr.
Management or financial behaviour needs caution. Demand stronger valuation compensation.
overall median 67 · Financial Services: 25th pctile, median 62 · Large: 8th pctile, median 74
46 documents indexed, but claim history is not strong enough yet.
2/8 claims checked · 1 contradicted/failed claim
How to read this Trust Score
Weak Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 86.7%.
- ▸Promoter pledge is zero.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸4/4 latest quarters had positive YoY PAT growth.
Trust risks
- ▸Operating cash flow is negative at ₹-19895 Cr.
- ▸Debt/equity is 4.60.
- ▸Altman Z is 0.61.
- ▸Promoter holding fell 2%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 27.20
- P/B
- 3.11
- EV/EBITDA
- 3695.28
- Market Cap
- 69974.00Cr
Profitability
- ROE
- 12.10%
- ROCE
- 8.84%
- ROA
- 2.01%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 29.00%
- EPS 5Y
- 41.00%
- Revenue 3Y
- 25.00%
- EPS 3Y
- 27.00%
Balance Sheet
- Debt/Equity
- 4.60
- Interest Coverage
- —
- Altman Z
- 0.62
- Book Value
- 27.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- -19895.00 Cr
- EPS TTM
- 3.07
Shareholding
- Promoter Hold
- 86.70%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 21%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.