Bajaj Housing Q1 FY27 Results (NSE: BAJAJHFL)
Signal: Earnings grew
The read
Q1FY27 shows strong AUM growth (24%) and disbursement momentum (33%), but NII growth decelerated to just 9% as finance costs rose 18% — the cost of borrowing is compressing spreads. The profit beat came from two sources: operating leverage (opex-to-NTI improved 160bps to 19.6%) and a near-halving of credit costs (₹16 Cr vs ₹38 Cr). Asset quality remains pristine (GNPA 0.29%). The key question going forward is whether NIM stabilisation or further compression will define the earnings trajectory as the rate cycle evolves.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,063.05 Cr | 17.11% | 5.52% |
| EBIT | ₹928.74 Cr | 22.69% | |
| Net profit | ₹715.28 Cr | 22.63% | |
| EPS | ₹0.86 | 22.86% |
P&L walk
Standalone-only filer; no subsidiaries.
Key positives
- AUM grew 24% YoY to ₹1,49,624 Cr, driven by strong disbursements of ₹19,509 Cr (+33% YoY).
- Operating efficiency improved: opex-to-NTI ratio fell 160bps YoY to 19.6%, driving pre-provision profit growth of 19%.
- Credit quality stable: GNPA unchanged at 0.29%, net NPA at 0.12%, and provision coverage ratio improved to 58.53%.
- PAT grew 23% YoY to ₹715 Cr, with lower credit costs (₹16 Cr vs ₹38 Cr) contributing nearly half the incremental profit.
Key concerns
- NII growth (9%) significantly lagged AUM growth (24%) as finance costs rose 18% YoY, compressing net interest margin.
- Cost of borrowing is rising: Debt-Equity ratio increased from 4.31 to 4.75, indicating higher leverage to fund growth.
- LCR dropped sharply from 210.57% to 158.12%, though still well above the 100% regulatory minimum.
Research and educational content only. Not investment advice.