Bajaj Housing Q2 FY27 Results (NSE: BAJAJHFL)
Signal: Earnings grew
The read
The core trajectory remains growth-led: AUM reached ₹1,58,205 crore, +25% YoY, and disbursements rose 25% to ₹19,935 crore, but PAT growth decelerated from +22.63% in Q1FY27 to +17.73% in Q2FY27 because finance costs grew 20.43% versus 16.73% interest-income growth; asset quality stayed contained with GNPA at 0.29% and NNPA at 0.12%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,251.09 Cr | +18.30% | +6.14% |
| EBIT | ₹1,015 Cr | +16% | |
| Net profit | ₹756.97 Cr | +17.73% | |
| EPS | ₹0.91 | +18.18% | |
| EBIT margin | 0% |
P&L walk
Total income rose to ₹3,251.09 crore, +18.30% YoY and +6.14% QoQ, but finance costs increased 20.43% YoY, above interest-income growth of 16.73%; lower provisions and controlled operating expenses supported PAT growth of 17.73%.
Key positives
- AUM grew 25% YoY to ₹1,58,205 crore and disbursements grew 25% YoY to ₹19,935 crore, sustaining the company's scale expansion.
- Operating expenses grew 12% YoY versus 15% growth in net total income, reducing operating-expense intensity to 19.1% from 19.7%.
- Loan losses and provisions declined 19% YoY to ₹35 crore, while provision coverage on Stage 3 assets improved to 59.80% from 55.64%.
- GNPA remained low at 0.29% and NNPA was stable at 0.12% YoY; capital adequacy was 21.24%.
Key concerns
- Finance costs rose 20.43% YoY to ₹1,996.65 crore, faster than interest-income growth of 16.73%, limiting NII growth to 10%.
- PAT growth slowed to 17.73% in Q2FY27 from 22.63% in Q1FY27, despite 25% AUM growth, indicating pressure from funding costs and yield compression.
- Operating cash flow was negative at ₹14,809.75 crore in H1FY27 as loans increased by ₹16,066.10 crore, leaving growth dependent on ₹14,646.35 crore of financing cash inflow.
- GNPA increased to 0.29% from 0.26% YoY, although NNPA remained at 0.12%.
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